Which of the Following Is an Example of a Normative

question 36

Multiple Choice

Which of the following is an example of a normative economic statement?

• A)If the money supply falls,interest rates will rise.
• B)Teenage unemployment would be lower if there were no minimum wage.
• C)The quantity of shirts sold increases as the price of shirts decreases.
• D)The federal government's total spending should be reduced.
• E)If interest rates go up,then construction activity will fall.

Examine the impact of international events on U.S. foreign policy and domestic politics.

Evaluate the strategies used by Ronald Reagan to address economic and social issues.

Understand the role of immigration policy and its changes in the 1980s.

Analyze the impact of legal and judicial changes on American society in the 1980s.

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Definitions:

Fixed Overhead Volume Variance

The difference between the budgeted and actual volume of production, multiplied by the fixed overhead rate, indicating inefficiencies in utilizing production capacities.

Direct Labour Hours

A measure of the amount of time workers spend directly manufacturing a product, which is often used to allocate manufacturing overhead in product costing.

Standard Costing System

An accounting method that uses estimated costs for planning and decision-making purposes.

Variable Overhead Spending Variance

The difference between the actual variable overhead costs incurred and the expected costs based on standard rates.