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:

Activity Variances

The differences between planned levels of activity and actual levels, and their impact on budgeted figures.

Spending Variances

The difference between the actual costs incurred and the budgeted or standard costs.

Meals

Refers generally to food that is prepared and served to individuals, often used in contexts ranging from personal dining to large-scale service industries.

Patient-visits

The number of times patients seek services from a healthcare provider or facility.