The Important Characteristic of Normative Statements Is That They

question 60

Multiple Choice

The important characteristic of normative statements is that they

• A) explain what really exists.
• B) are based on somebody's values and cannot be tested.
• C) explain what normally happens in the real world.
• D) help guide us to what will normally occur if some economic variable changes its value.
• E) do not use the ceteris paribus assumption.

---

Definitions:

RUPA

The Revised Uniform Partnership Act, which provides a framework for the governance of business partnerships in several states.

Equal Share

A portion or percentage of something, such as profits or ownership, that is distributed equally among all members or parties involved.

Silent Partner

An investor in a partnership who contributes capital but does not take part in the management or daily operations of the business.

Day-To-Day Operations

Involves the regular, routine activities necessary for a business or organization to function efficiently.