Which of the Following Statements Has Both Positive and Normative

question 45

Multiple Choice

Which of the following statements has both positive and normative aspects to it?

• A)Reducing taxes on telecommunications will lower the price for consumers and encourage families to communicate with one another more frequently.
• B)Reducing the minimum wage will lead to lower unemployment and a lower average wage.
• C)Increasing taxes on gasoline will lead to lower fuel consumption and fewer automobiles being sold each year.
• D)Taxing alcohol leads to lower alcohol consumption per year.

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Definitions:

Indefinite Useful Lives

An accounting classification for intangible assets that are not expected to expire or have an end to their useful economic life.

Auditors

Professionals responsible for examining and verifying the accuracy of financial records and statements of an organization.

Investment Account

An account held at a financial institution that contains investments like stocks, bonds, mutual funds, and ETFs, potentially helping the owner achieve long-term financial goals.

Dividends

Payments made by a corporation to its shareholder members. It is the portion of corporate profits paid out to stockholders.