Which of the Following Is an Example of a Normative

question 62

Multiple Choice

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

• A)Higher unemployment rates are common among young people
• B)Young people should learn how to prepare their own taxes.
• C)Auto insurance rates are generally lower for younger drivers.
• D)Persons under the age of 30 watch more movies than those over the age of 30.
• E)The production of certain goods generates negative externalities.

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Definitions:

Asset

Resources owned or controlled by a business, projected to bring future economic benefits.

Measurement Alternative

An accounting option that allows entities to measure certain investments at cost, minus impairment, plus or minus changes resulting from observable price changes in orderly transactions for identical or similar investments of the same issuer.

Receivables

Debts owed to a company by customers or other parties arising from the sale of goods or services or loans given.

Investment Securities

Financial instruments purchased with the intent of holding them for investment. These can include stocks, bonds, and other securities.