Which of the Following Is an Example of a Normative,as

question 52

Multiple Choice

Which of the following is an example of a normative,as opposed to positive,statement?

• A)Universal health care would be good for U.S.citizens.
• B)An increase in the cigarette tax would cause a decrease in the number of smokers.
• C)A decrease in the minimum wage would decrease unemployment.
• D)A law requiring the federal government to balance its budget would increase economic growth.

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Definitions:

Shipments

The transportation of goods from one location to another.

Distributors

Entities involved in the process of making products available for consumption by distributing them from producers to end consumers.

Fair Value Option

An accounting approach allowing companies to report certain assets and liabilities at fair market values rather than historical costs.

Fair Value Option

An accounting choice to measure certain financial assets and liabilities at fair market values.