Which of the Following Is an Example of a Normative

question 118

Multiple Choice

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

• A)The moon is made of green cheese.
• B)Women should earn the same income as men.
• C)When the price of a good rises, people will buy more of it.
• D)The more time you spend studying, the higher your economics test scores will be.
• E)The more time you spend studying for chemistry, the higher your economics test score will be.

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Definitions:

Actual Expenses

The real or verified costs incurred during a specific period for operations, projects, or activities.

Accounting Costs

The actual expenses and cash outflows that a business incurs, captured in its financial records.

Implicit Costs

The opportunity costs of using resources owned by the firm for its current purposes rather than the next best alternative uses.

Accounting Profits

Accounting profits refer to the net earnings of a company as calculated by subtracting total expenses from total revenues, using standard accounting principles.