Suppose That the Price of Butter Is $3 Per Pound

question 92

Multiple Choice

Suppose that the price of butter is $3 per pound and the price of margarine is $2 per pound.If the price of butter rises to $3.90 and the price of margarine rises to $2.20,then the absolute price of butter has _______________ and the relative price of butter has _______________.

• A) risen; fallen
• B) fallen; risen
• C) risen; risen
• D) fallen; fallen

Recognize the significance of both human and physical capital investment for economic development.

Understand the historical impacts of colonialism on developing nations.

Grasp the role of banking and financial institutions in economic development.

Explore the relationship between natural resources and economic development.

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Definitions:

Net Income

The total amount of profit left over after all operating expenses, taxes, and interest have been deducted from total revenue.

Variable Costs

Costs that change in proportion to the level of activity or volume of goods produced, including materials, labor, and energy costs.

Fixed Costs

Expenses that do not change with the volume of production or sales, such as rent and salaries.

Net Income

The amount of profit remaining after all operating expenses, taxes, and interest have been deducted from total revenue.