A Normative Economic Statement Such as "The Minimum Wage Should

question 99

Multiple Choice

A normative economic statement such as "The minimum wage should be abolished"

• A) would likely be made by an economist acting as a scientist.
• B) would require values and data in order to be evaluated.
• C) would require data but not values in order to be evaluated.
• D) could not be evaluated by economists acting as policy advisers.

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Definitions:

Ethical Situation

A scenario or decision-making process that involves determining the right course of action in situations where moral considerations are relevant.

GAAP

Generally Accepted Accounting Principles, a common set of accounting rules and standards for financial reporting used in the United States.

Accounting Principles

Fundamental guidelines or rules that govern the financial reporting process, ensuring the consistency, reliability, and comparability of financial statements.

Auditing Procedures

The methods and tests auditors use to gather evidence and evaluate the validity of a company's financial statements.