Normative Statements I. Describe How the World Is

question 52

Multiple Choice

Normative statements
I. describe how the world is.
Ii. describe how the world ought to be.
Iii. depend on people's values and cannot be tested.

• A)i only.
• B)ii only.
• C)i and iii.
• D)iii only.
• E)ii and iii.

---

Definitions:

Fixed Costs

Costs that do not change with the level of production or sales volume, such as rent or salaries.

Variable Costs

Costs that vary in direct proportion to changes in the level of production or sales volume.

Sales

Transactions involving the exchange of goods or services for money, contributing to a company's revenue.

Break-Even Point

The Break-Even Point is the level of production or sales at which total revenues equal total costs, resulting in no profit or loss for the business.