Which of the Following Is an Example of a Normative

question 45

Multiple Choice

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

• A)The discount rate is the interest rate the Federal Reserve charges banks to borrow funds.
• B)The US income tax rate increases with the amount of income earned.
• C)The government should increase the tax on gasoline.
• D)The US unemployment rate increased to 10 percent in 2009.

Recognize the importance of brand image and equity in establishing a competitive advantage.

Identify different types of marketing such as viral, relationship marketing, and their effectiveness.

Understand the emotional impact of pricing on consumer perception of quality.

Assess the application and effects of pricing strategies including skimming, penetration, and cost-plus in the market.

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Definitions:

Inefficient Manner

Performance or operation in a way that does not achieve the best possible outcome or wastes resources.

Marginal Revenue

The supplementary income generated through the sale of one extra unit of a good or service.

Output

The total amount of goods or services produced by a company, industry, or economy in a given period.

Marginal Cost

The increase in cost that arises from producing one additional unit of a good or service.