Which of the Following Is a Normative Statement

question 39

Multiple Choice

Which of the following is a normative statement?

• A)​An increase in taxes will cause higher unemployment.
• B)​An increase in tariffs will increase the domestic prices paid by consumers.
• C)​Income should be redistributed from the top 2% of wage earners to the lower income brackets.
• D)​Running government budget deficits leads to higher market interest rates.

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Definitions:

Maintenance Costs

The expenses incurred to keep an asset in working condition or restore it to proper operation.

Least-Squares Regression

A statistical method used to determine the line of best fit by minimizing the sum of the squares of the differences between observed values and those predicted by a linear function.

Machine-Hours

A measure of production time, calculating the total hours a machine is operated within a specific period.

Inspection Costs

Expenses incurred to ensure that products or services meet specified quality and safety standards before being sold or delivered.