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.

---

Definitions:

Subsidiary

A company that is controlled by another company, known as the parent company, through the ownership of more than half of its voting stock or through other means of control.

Intangible Assets

Assets that lack physical substance but provide economic benefits to a company, such as trademarks, patents, and copyrights.

Impairment

The reduction in the recoverable value of an asset below its carrying amount on the balance sheet.

Indefinite Useful Lives

An accounting classification for intangible assets that are not expected to expire or have an end to their useful economic life.