Which of the Following Is an Example of a Normative,as

question 24

Multiple Choice

Which of the following is an example of a normative,as opposed to positive,statement?

• A)Gasoline prices ought to be lower than they are now.
• B)The federal government should raise taxes on wealthy people.
• C)The social security system is a good system and it deserves to be preserved as it is.
• D)All of the above are normative statements.

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Definitions:

Mixed Cost

A cost consisting both of variable and fixed components, which changes in total in response to changes in activity level but not necessarily in direct proportion.

Least-squares Regression

A method in statistics for finding the optimal line of fit by minimizing the sum of the squared deviations between real and estimated values.

Maintenance Cost

The expenses incurred to keep machinery, equipment, or buildings in operating condition and repair.

Machine-hours

An indicator of the duration for which equipment is utilized in the manufacturing process, commonly employed for distributing manufacturing overhead costs.