Which of the Following Is a Normative Economic Statement

question 105

Multiple Choice

Which of the following is a normative economic statement?

• A) If we doubled the size of welfare payments, we would reduce the number of homeless persons.
• B) Companies should be concerned with more than just their profits.
• C) An increase in spending on airport security will reduce the number of hijackings.
• D) If social security were to be privatized, workers would earn a higher rate of return on their retirement contributions.

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Definitions:

Non-controlling Interests

The share of ownership in a subsidiary that is not owned, directly or indirectly, by the parent company.

Significant Restrictions

Limitations or constraints that significantly impact the use, transfer, or disposal of assets or resources.

AASB 3

An accounting standard provided by the Australian Accounting Standards Board relating to Business Combinations, guiding the accounting treatment for all phases of the acquisition process.

IFRS 3

An International Financial Reporting Standard that deals with business combinations, requiring acquired assets and liabilities to be measured at their fair values at acquisition date.