Which of the Following Is a Normative Statement

question 166

Multiple Choice

Which of the following is a normative statement?

• A) Fifteen percent of Americans go without health insurance in a year.
• B) The Consumer Price Index rose three-tenths of one percent in May.
• C) An increase in the minimum wage will increase teenage unemployment.
• D) Americans would be better served by single-payer health care system.
• E) The French trade deficit reached an all-time high last year.

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Definitions:

Residual Income

The amount of income generated after all expenses and costs have been deducted from total revenues, often used in performance evaluation.

Minimum Required Rate

The lowest acceptable return on investment or performance measure that a company or investor expects to achieve.

Operating Assets

Resources owned by a business that are used in its day-to-day operations to generate income.

Residual Income

Income that remains after subtracting all the cost of capital from the net operating profit.