Which of the Following Statements Are Positive and Which Are

question 41

Essay

Which of the following statements are positive and which are normative?
a.The minimum wage creates unemployment among young and unskilled workers.
b.The minimum wage ought to be abolished.
c.If the price of a product in a market decreases, then, other things equal, quantity demanded will increase.
d.A little bit of inflation is worse for society than a little bit of unemployment.
e.There is a tradeoff between inflation and unemployment in the short run.
f. If consumer income increases, then, other things equal, the demand for automobiles will increase.g. The U.S. income distribution is not fair.
h. U.S. workers deserve more liberal unemployment benefits.
i. If interest rates increase, then investment will decrease.j. If welfare benefits were reduced, then the country would be better off.

Grasp the concept of privity and near-privity in the context of accountant liability.

Identify the requirements and implications of the Sarbanes-Oxley Act on accountants’ responsibilities and working paper maintenance.

Comprehend the role and consequences of negligence, fraud, and constructive fraud in the context of accountant liability.

Understand the legal environment and liability standards for accountants in various jurisdictions, including Canada.

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Definitions:

Sales Revenue

The income received by a company from its sales of goods or the provision of services before any costs or expenses are deducted.

Profit Before Income Tax

The earnings of a business before taking into account the deduction of income tax expenses, also known as pre-tax profit.

Percentage Increase

The ratio, often expressed as a percentage, by which a quantity grows over a specific period.

After-Tax Profit

The amount of net income left over after all taxes have been deducted from total revenue.