Which of the Following Is a Normative Economic Statement

question 171

Multiple Choice

Which of the following is a normative economic statement?

• A)Falling global demand for pesticides has led to decreases in the price of pesticides.
• B)With falling mortgage rates and falling unemployment rates,the number of new homes being built has increased.
• C)The state of Florida's unemployment rate dropped when several large companies relocated to the Miami area.
• D)Global warming should be at the top of every economic agenda.

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Definitions:

Factory Overhead

All indirect costs associated with manufacturing beyond direct materials and direct labor, such as maintenance, utilities, and salaries of supervisory personnel.

Direct Labor

The cost of wages for employees directly involved in the production of goods or services.

Process Costing System

A costing method used in industries where production is continuous and units are indistinguishable from each other, allocating costs to units of product based on the process they go through.

Work In Process Accounts

Accounts used to track the costs of unfinished goods in production processes at any point in time.