What Would Explain the Fact That Food Costs Less Now

question 116

Multiple Choice

What would explain the fact that food costs less now than it did in the early 1980s?

• A) Real prices decreased.
• B) GDP per capita increased.
• C) The PPI decreased.
• D) The CPI decreased.

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Definitions:

Future Growth Opportunities

Potential avenues or prospects that can lead to an expansion of a business's operations and an increase in its profitability.

Cost of Equity Capital

The return that investors require for an investment in a company's equity, reflecting the compensation for taking on equity risk.

Rate of Return

The gain or loss on an investment over a specified period, expressed as a percentage of the investment’s cost.

Earnings Multiple

A financial metric used to evaluate the relative value of a company, determined by dividing the company's stock price by its earnings per share.