Which of the Following Is a Normative Economic Statement

question 140

Multiple Choice

Which of the following is a normative economic statement?

• A)Rising corn prices have increased the price of corn-based ethanol.
• B)With rising home prices and falling mortgage interest rates, the amount of home foreclosures has decreased.
• C)The federal government is considering increasing regulations on the use of fossil fuels to promote the use of wind power.
• D)Farmers should not be allowed to grow and sell genetically-modified crops.

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Definitions:

Intangible Asset

An asset that lacks physical substance but provides economic benefits to a business, such as trademarks or patents.

Commercial Substance

A consideration in accounting that a transaction has significantly changed the economic circumstances of the participants.

Gain or Loss

The difference between the sale price of an asset and its original purchase price, indicating the financial outcome of a transaction.

Service Potential

This refers to the capacity or ability of a service or asset to provide benefits or usefulness to an entity or its operations.