Which of the Following Is an Example of a Normative

question 118

Multiple Choice

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

• A)The moon is made of green cheese.
• B)Women should earn the same income as men.
• C)When the price of a good rises, people will buy more of it.
• D)The more time you spend studying, the higher your economics test scores will be.
• E)The more time you spend studying for chemistry, the higher your economics test score will be.

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Definitions:

Normal Capacity

The average level of operational output that a company can sustain with its current resources, under normal conditions over a certain period.

Production

The process of creating, manufacturing, or enhancing products or services, often involving both labor and machinery.

Machine Hour

A unit of measure indicating the time a machine is operated, used to allocate manufacturing overhead based on machine time.

Fixed Factory Overhead Volume Variance

The difference between the budgeted and actual fixed overhead allocated to production, based on changes in the volume of goods produced.