Which of the Following Is an Example of a Normative

question 10

Multiple Choice

Which of the following is an example of a normative economic statement?

• A) The inflation rate in Australia decreased from 4 per cent last year to 3 per cent this year as a result of lower energy prices.
• B) The economy grew at an annual rate of 5 per cent during the first quarter of this year.
• C) Australia should use more renewable energy to reduce greenhouse gas emissions.
• D) An increase in international trade benefits some workers but hurts others.

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Definitions:

Sources Of Financing

Various means through which a business or individual can obtain funds, including loans, equity, grants, and savings.

Comparative Financial Statement

Financial reports that provide a side-by-side comparison of a company's financial position and performance over different periods.

Base Period

A specific time period against which economic or financial data is compared or analyzed.

Analysis Period

The specific span of time over which financial performance is evaluated or investment decisions are analyzed.