Which of the Following Is an Example of a Normative

question 73

Multiple Choice

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

• A) How will an increase in the price of diesel fuel affect truck drivers?
• B) What fraction of an income-tax rebate check will be spent on consumer goods?
• C) Should the government provide free prescription drugs to lower-income citizens?
• D) How will an increase in the minimum wage affect migrant workers?

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Definitions:

Investment Center Managers

Executives responsible for a business unit or division's operations and financial results, including revenue, expenses, and invested capital.

Performance Measures

Metrics used to assess and track the efficiency, effectiveness, and productivity of an organization or its employees.

Income and Capital

Refers to the two primary ways wealth is generated: income through earnings like wages and investments, and capital through appreciating assets like real estate or stocks.

Assets Only

A focus on the asset side of the balance sheet, disregarding liabilities and equity to concentrate solely on the resources owned by a company.