Which of the Following Is an Example of a Normative

question 130

Multiple Choice

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

• A) The average price of a Whopper Jr. is $2.19.
• B) The United States ought to adopt a flat rate personal income tax.
• C) Unemployment in the United States is too high.
• D) Average growth in real GDP per year was 1.84 percent between 2000 and 2010.

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Definitions:

Personal Guarantee

This is a legal promise made by an individual to repay the borrowing of a business entity in case it fails to do so, thus personally ensuring the debt.

Economic Performance

Economic performance refers to the evaluation of how effectively an economy or a specific entity manages its resources and meets its objectives, often measured in terms of productivity, efficiency, and growth.

Informational Needs

The specific data and insights required by individuals or organizations to make informed decisions.

Financial Accounting Standards Board

An independent, private-sector body that establishes and interprets Generally Accepted Accounting Principles (GAAP) in the United States.