A Statement Describing How the World Should Be

question 26

Multiple Choice

A statement describing how the world should be

• A)is a normative statement.
• B)is a positive statement.
• C)would only be made by an economist speaking as a scientist.
• D)would only be made by an economist employed by the government.

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Definitions:

Accounts Payable

Liabilities of a business that are due to be paid to creditors within a short period, usually one year.

Balance Sheet

A financial statement that shows the assets, liabilities, and shareholders' equity of a company at a specific point in time, providing a snapshot of its financial condition.

External Financing Needed

The additional funding required by a firm to finance its business activities and growth outside of internal cash flows.

Dividend Payout Ratio

The percentage of a company's earnings paid out to shareholders in the form of dividends.