The Inflation Rate Is a Measure of How Fast

question 11

Multiple Choice

The inflation rate is a measure of how fast:

• A)the total income of the economy is growing.
• B)unemployment in the economy is increasing.
• C)prices in the economy are rising.
• D)the number of jobs in the economy is expanding.

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Definitions:

Variable Costs

Costs that change in proportion to the level of activity or volume of goods produced in a business.

Unit Contribution Margin

The dollars available from each unit of sales to cover fixed costs and provide operating profits.

Fixed Costs

Expenses that do not change with the level of production or sales over the short term, such as rent and salaries.