Which of the Following Is a Normative Economic Statement

question 124

Multiple Choice

Which of the following is a normative economic statement?

• A)Rising global demand for diesel and heating oil has led to increases in the price of crude oil.
• B)With falling home prices and rising mortgage interest rates,the amount of foreclosures has increased.
• C)The federal government is considering raising the gasoline tax to promote the use of public transportation.
• D)Fashion designers should be allowed to copyright designs to promote innovation.

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Definitions:

Insurance Premium

The amount paid periodically to an insurance company in exchange for coverage.

Condensed Balance Sheet

A simplified balance sheet that consolidates some of the more detailed accounts into major categories, providing a summary overview of a company's financial position.

Statement of Cash Flows

An overview presenting the effects of changes in income and balance sheet figures on cash and cash equivalents, categorized by operating, investing, and financing activities.

Indirect Method

An approach used in cash flow statements where net income is adjusted for changes in non-cash working capital and other items to arrive at net cash flow from operating activities.