Which of the Following Is an Example of a Normative

question 222

Multiple Choice

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

• A) If cars become more expensive, fewer people will buy them.
• B) Car prices should be affordable.
• C) If wages increase, firms will fire some workers.
• D) Fewer people die in larger cars than in smaller cars.
• E) Cars emit pollution.

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Definitions:

Decimal Place

The position of a number to the right of a decimal point, indicating the precision or fractional part of the number.

Stockholders' Equity

The residual interest in the assets of a corporation after deducting liabilities, representing the ownership equity held by stockholders.

Fixed Assets

Long-term tangible assets used in the operation of a business and not expected to be converted to cash in the short term.

Long-term Liabilities

Obligations or debts due beyond one year or the normal operating cycle, including bonds payable, long-term leases, and pension liabilities.