Which of the Following Is a Normative Economic Statement

question 107

Multiple Choice

Which of the following is a normative economic statement?

• A)An increase in corporate income taxes will cause the unemployment rate to increase.
• B)The costs of medical care are increasing faster than the incomes of U.S. citizens.
• C)Teenage unemployment is over ten percent.
• D)Teenage unemployment is too high.

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Definitions:

Applied Overhead

The portion of overhead costs allocated to individual jobs or products based on a predetermined rate.

Raw Materials Inventory

The total cost of all the components used to manufacture a product that a company has in stock but has not yet used in production.

Factory Overhead

Factory overhead refers to all the indirect costs associated with manufacturing, excluding direct labor and direct materials, such as utility costs and maintenance expenses.

Work in Process Inventory

Products that are under construction but haven't been fully finished.