Which of the Following Is a Normative Statement

question 188

Multiple Choice

Which of the following is a normative statement?

• A) A decrease in price leads to an increase in quantity consumed.
• B) Incomes grow more rapidly in high-tax states than low-tax states.
• C) People would be better off if government expenditures were higher.
• D) People will buy less butter at $1.50 per pound than they will at $1 per pound.

---

Definitions:

Worksheet Process

A methodical procedure involving spreadsheets or worksheets used in planning, accounting, or financial analysis.

Consolidated Financial Statements

Financial statements that combine and present the financial position, results of operations, and cash flows of a parent and its subsidiaries as one single entity.

Excess Fair Value

The amount by which the fair value of an asset exceeds its carrying amount on the balance sheet.

Proportionate Book Value

Proportionate Book Value is the share of the book value of a company ascribed to a particular segment, usually in line with the percentage of ownership or interest.