Which of the Following Is an Example of a Normative

question 22

Multiple Choice

Which of the following is an example of a normative statement?

• A)If the money supply falls, interest rates will rise.
• B)Teenage unemployment would be lower if there were no minimum wage.
• C)The quantity of shirts sold increases as the price of shirts decreases.
• D)The federal government's total spending should be reduced.
• E)If interest rates go up, then construction activity will fall.

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Definitions:

Existing Copier

A copier machine that is currently owned or in use within an organization.

Evaluation

The process of examining and judging something's value, quality, or importance.

Net Working Capital

Net Working Capital is a measure of a company's short-term financial health, calculated as current assets minus current liabilities.

Present Value

The contemporary valuation of future financial inflows or a lump sum, adjusted for a specific rate of return.