Which of the Following Is an Example of a Normative

question 33

Multiple Choice

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

• A) A higher price for a good causes people to want to buy less of that good.
• B) A lower price for a good causes people to want to buy more of that good.
• C) To make the good available to more people, a lower price should be set.
• D) If you consume this good, you will be better off.

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Definitions:

Fixed Overhead

Costs that do not vary with the level of production or sales, such as rent, salaries, and insurance.

Special Offer

A promotional deal or discount aimed at encouraging consumers to buy a product or service.

Direct Materials

The raw materials that can be directly traced to the manufacturing of a product.

Remachine

The process of reworking or refurbishing a piece of machinery to restore its functionality or improve its performance.