Which of These Statements Is an Example of Normative Economics

question 141

Multiple Choice

Which of these statements is an example of normative economics?

• A) The Americans with Disabilities Act reduced employment opportunities for the disabled.
• B) Rent controls reduce the housing stock.
• C) Workers pay the majority of corporate taxes in the form of lower wages.
• D) The government should not have bailed out the domestic automobile market.

---

Definitions:

Conversion Costs

Expenses incurred in the process of converting raw materials into finished goods, typically including labor and overhead.

Weighted-Average Method

A cost accounting method that calculates the cost of inventory based on the average cost of all similar items in inventory, irrespective of when they were purchased.

Molding Department

A specialized section in a manufacturing facility where the molding of materials into parts or products is performed.

Conversion Costs

The combined costs of direct labor and manufacturing overheads, representing the expenses to convert raw materials into finished goods.