Because Income Differs So Much by Type of Job, Some

question 65

Multiple Choice

Because income differs so much by type of job, some economists argue that a new class distinction has emerged between:

• A) union and nonunion workers.
• B) workers and capitalists.
• C) professionals and nonprofessionals.
• D) salaried workers and the self-employed.

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Definitions:

Break-even Point

The sales level at which total revenues equal total costs, resulting in no profit or loss.

Margin of Safety

This metric calculates how much sales can decline before a business reaches its breakeven point.

Total Contribution Margin

The total amount remaining from sales revenue after all variable costs are deducted, used to cover fixed costs and profit.

Margin of Safety

The difference between actual sales and the break-even point, indicating the amount by which sales can drop before the business incurs a loss.