Which of the Following Statements Is a Normative Statement

question 180

Multiple Choice

Which of the following statements is a normative statement?

• A) Inflation has been at an all-time low this year.
• B) The minimum wage should be increased to $8.50 per hour.
• C) Unemployment this month has increased by less than 0.5 percentage point..
• D) Additional spending on education has not produced any rise in test scores.
• E) Pepsi is less expensive than Coke this week.

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Definitions:

Business Risk

The exposure a company or investor faces due to uncertainties in the operating environment, impacting its profitability.

Contribution Margin

The selling price per unit, minus the variable cost per unit, indicating the contribution towards covering fixed costs and profit.

Business Risk

The potential for loss or failure in a business operation due to factors like market conditions, financial instability, or operational challenges.

Financial Risk

The possibility of losing money on an investment or business venture, including market risk, credit risk, liquidity risk, and operational risk.