A Normative Statement Is One That

question 107

Multiple Choice

A normative statement is one that

• A) is based on the law of averages.
• B) applies only to microeconomics.
• C) applies only to macroeconomics.
• D) is based on value judgments.

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Definitions:

Production Constraint

A limitation or restriction in the production process, such as limited resources or capacity, that affects output.

Constrained Resource

A limited resource within a manufacturing or production process that restricts the output volume.

Obsolete Inventory

Items in stock that are out of date or no longer in demand, which are unlikely to be sold.

Decision

The process or action of choosing among alternatives, often based on analysis and information to achieve a desired goal.