Which of the Following Is a Normative Economic Statement

question 124

Multiple Choice

Which of the following is a normative economic statement?

• A)Rising global demand for diesel and heating oil has led to increases in the price of crude oil.
• B)With falling home prices and rising mortgage interest rates,the amount of foreclosures has increased.
• C)The federal government is considering raising the gasoline tax to promote the use of public transportation.
• D)Fashion designers should be allowed to copyright designs to promote innovation.

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Definitions:

Tiered Corporate Group

A hierarchical structure where a parent company controls subsidiary companies, which in turn may control their own subsidiaries, creating multiple levels of entity relationships.

Control

The power to govern the financial and operating policies of an entity so as to obtain benefits from its activities, often through ownership of a majority of voting rights.

Sequential Consolidation Method

A process of combining financial statements of a parent company and its subsidiaries one at a time in a specific sequence.

Disadvantages

Refers to the drawbacks or limitations that may hinder success or efficiency in a specific context.