Normative Statements Are

question 64

Multiple Choice

Normative statements are

• A)not usually made by economists.
• B)claims about how the world should be.
• C)claims about how variables in the economy normally behave.
• D)pessimistic interpretations of the economy.

---

Definitions:

Operating Income

The profit realized from a business's operations after deducting operating expenses from gross profit.

Dividends

Financial distributions to a corporation's shareholders, usually coming from the business's earnings.

Quantity Variance

A variance that is computed by taking the difference between the actual quantity of the input used and the amount of the input that should have been used for the actual level of output and multiplying the result by the standard price of the input.

Standard Quantity

The expected or planned amount of materials or inputs required for the production of a unit of product, based on efficient operations.