Which of the Following Is an Example of a Normative

question 69

Multiple Choice

Which of the following is an example of a normative statement?

• A) The American Recovery and Reinvestment Act should not have been passed during the Great Recession.
• B) Unemployment soared to 25 percent during the Great Depression.
• C) An increase in alcohol taxes will reduce the number of drunk driving accidents.
• D) Great Britain has fewer hospital beds per capita today than they did in 1948.

---

Definitions:

Company

A legal entity formed by a group of individuals to engage in and operate a business—commercial or industrial—enterprise.

Par Value

The face value of a bond or stock as stated by the issuing company, which may differ from its market value.

Stock

Shares in the ownership of a company, representing a claim on part of the corporation's assets and earnings.

Share

A unit of ownership in a company or financial asset that gives the holder a claim on part of the company's assets and earnings.