Which of the Following Is True Regarding a Normative Statement

question 278

Multiple Choice

Which of the following is true regarding a normative statement?
i.It uses the ceteris paribus assumption.
ii.It is a value judgment.
iii.It accounts for opportunity costs.

• A) i and iii
• B) ii and iii
• C) i only
• D) ii only
• E) i, ii, and iii

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Definitions:

Rate of Return

The percentage of profit or loss on an investment over a period.

Guaranteed Rate

A promised or assured rate of return on an investment or loan.

Special Account

An account created for a specific, often non-routine, purpose, which may involve unique transactions or conditions.

Withdraw

The act of removing funds from a bank account or the action of retracting from a position or commitment.