Which of the Following Is a Normative Economic Statement

question 3

Multiple Choice

Which of the following is a normative economic statement?

• A)The price of gasoline is too high.
• B)The current high price of gasoline is the result of strong worldwide demand.
• C)When the price of gasoline rises, the quantity of gasoline purchased falls.
• D)When the price of gasoline rises, transportation costs rise.

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Definitions:

Annual Cash Dividends

The total amount of cash payments made to shareholders from a company's earnings over one fiscal year.

Market Value

The prevailing market rate at which a service or asset is available for purchase or sale.

Par Value Common Stock

The nominal or face value assigned to common stock shares in the corporate charter, which may differ significantly from the market value.

Paid-in Capital

The amount of money that a company receives from selling its shares directly to investors, not including the stock value on secondary markets.