Which of the Following Is a 'Normative' Economic Statement

question 108

Multiple Choice

Which of the following is a 'normative' economic statement?

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

Understand credit risk in the swap market and the limitations thereof.

Understand the essentials of agency theory and the owner-manager relationship, including risk aversion and other agency problems.

Grasp the basics of accounting theories, including normative and positive theories and their development processes.

Identify the types of reasoning used in theory development, such as inductive and deductive reasoning.

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Definitions:

Performance Judgments

Assessments made regarding an employee's work performance, often influencing decisions on promotions, pay, and continuation of employment.

Expectancy Theory

A motivational theory suggesting that an individual's effort level is based on their expectation of achieving desired performance outcomes and the value they place on those outcomes.

Self-Appraisals

The process where employees evaluate their own performance, strengths, and areas for improvement, usually as part of a performance review cycle.

Culturally Diverse

Characterized by the inclusion of people from a variety of cultural, ethnic, and racial backgrounds.