Which of the Following Is a Normative Economic Statement

question 4

Multiple Choice

Which of the following is a normative economic statement?

• A) The Federal budget deficit rose by 120 billion dollars
• B) The unemployment rate is expected to fall next month
• C) A trade surplus of 200 billion dollars should be our policy goal
• D) The federal funds rate was reduced by half a percentage point

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Definitions:

Income taxes

Taxes levied by governments on individuals or entities' income.

FIFO

Stands for First In, First Out, an inventory valuation method where goods purchased or produced first are sold or used first.

Gross profit

The difference between revenue and the cost of goods sold (COGS), representing the profit made before deducting operating expenses.

Net income

The profit of a company after all revenues, costs, and expenses have been subtracted, indicating the actual earnings.