Which of the Following Is Not an Example of a Positive,as

question 15

Multiple Choice

Which of the following is not an example of a positive,as opposed to normative,statement?

• A)Higher gasoline prices will reduce gasoline consumption.
• B)Equality is more important than efficiency.
• C)Trade restrictions lower our standard of living.
• D)If a nation wants to avoid inflation,it will restrict the growth rate of the quantity of money.

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Definitions:

Pushdown Accounting

An accounting method where the purchase price of an acquired entity is pushed down onto the acquired entity's financial statements.

FASB Accounting Standards

Stands for Financial Accounting Standards Board Accounting Standards, which set the rules for financial accounting and reporting in the U.S.

Business Combinations

The process by which one company acquires control over another, resulting in the consolidation of assets and liabilities under one entity.

Fair Value

An estimate of the market value of an asset or liability, based on the price that two informed and willing parties would agree to in an arm's length transaction.