All of the Following Statements,except One,are Normative Statements

question 105

Multiple Choice

All of the following statements,except one,are normative statements.Which is the exception?

• A)The government should decrease spending.
• B)Government spending is a topic in macroeconomics.
• C)Cuts to government spending in Canada have had enormous social costs.
• D)Increasing taxes is better than cutting government spending.

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Definitions:

Earnings Before Taxes

A company's profit before taxation is deducted.

Industry Average

A statistical measure representing the typical performance within a particular industry, serving as a benchmark for evaluating individual companies.

Du Pont Identity

A formula that decomposes a company's return on equity into three components: profit margin, asset turnover, and financial leverage.

Receivables Turnover

A financial ratio that measures how efficiently a company collects its accounts receivable or the firm’s efficiency in managing credit.