Normative Judgments Are Value Statements About Things We Believe or Observe

question 20

Multiple Choice

Normative judgments are value statements about things we believe or observe. Which of the statements below is not a normative judgment?​

• A)Fees at the University are so expensive they are the equivalent of tuition.
• B)The rainfall in New York City is less than the average for this year.
• C)The President's health plan is a fair way to provide medical services.
• D)This test is hard.
• E)The Congressional Social Security Plan is more prudent than the President's.

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Definitions:

Net Present Value

A financial metric that calculates the value of a project or investment by discounting future cash flows back to their present value to assess profitability and risk.

Inflation Rate

The rate at which the general level of prices for goods and services is rising, and subsequently, purchasing power is falling, usually measured over a year.

Spot Rate

The current market price used for immediate delivery of a financial instrument or commodity.

Interest Rate

This is the proportion of a loan that is charged as interest to the borrower, typically expressed as an annual percentage of the loan outstanding.