Normative Statements Are Not

question 13

Multiple Choice

Normative statements are not

• A)descriptive.
• B)prescriptive.
• C)claims about how the world should be.
• D)made by economists speaking as policy advisers.

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Definitions:

Stockholders' Equity

The residual interest in the assets of a corporation after deducting liabilities, representing the owners' share.

Land

A fixed asset that represents property; it is considered a non-depreciable asset used in operations or investment.

Investment by Owner

The contribution of cash or other assets by an owner into their business, increasing the equity of the company.

Deficit

The amount by which expenses surpass income or revenues, resulting in a loss.