Which of the Following Is an Example of a Normative

question 39

Multiple Choice

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

• A)Incomes increase when national production increases.
• 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:

Treasury Stock

Shares of a company's own stock that it has reacquired from shareholders, not considered a part of the float and not having voting power or dividend rights.

Long-term Debt Contracts

Agreements for borrowing funds that are to be repaid over a period longer than one year.

Weighted-average Shares

A calculation used in financial reporting to compute the average number of shares outstanding during a period, adjusting for any stock splits or dividend issues.

Net Income

The total profit of a company after all expenses, including taxes and operating expenses, have been subtracted from total revenue.