The Difference Between a Positive Economic Statement and a Normative

question 133

Multiple Choice

The difference between a positive economic statement and a normative statement is that

• A)a positive statement must be true; a normative statement is often not true
• B)a normative statement must be true; a positive statement is often not true
• C)a positive statement can be verified; a normative statement cannot
• D)a normative statements can be verified; a positive statement cannot
• E)a positive economic statement is a moral judgment; a normative economic statement is not a moral judgment

Comprehend the concept of the bankruptcy estate and its scope.

Recognize the process and implications of liquidation under Chapter 7.

Understand the powers of a bankruptcy trustee, especially in terms of avoiding fraudulent transfers.

Identify the types of transfers and payments that can be challenged or recovered in bankruptcy proceedings.

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Definitions:

Contribution Margin

The difference between sales revenue and variable costs, which contributes towards covering fixed costs and earning profit.

Fixed Costs

Costs that do not vary with the volume of production or sales, such as rent, salaries, and insurance premiums.

Units

A measure of quantity that indicates the count or quantity of a product or service.

High-Low Method

An approach to estimate fixed and variable costs using the highest and lowest levels of activity.