As Measured by the Amount of Time Spent in Recession

question 156

Multiple Choice

As measured by the amount of time spent in recession, the 1983-2015 period was

• A) characterized by 4 downturns and 65 months of recession.
• B) characterized by 2 downturns and 72 months of recession.
• C) the most stable era in American history.
• D) the second most unstable 33-year period in American history.

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Definitions:

Fixed Costs

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

Fixed Manufacturing Overhead

Costs that remain constant regardless of the level of production or output in a manufacturing environment.

Variable Distribution Costs

Expenses that change in proportion to how a product is stored, handled, and delivered.

Contribution Margin

The amount remaining from sales revenue after variable expenses are deducted, indicating how much of the revenue actually contributes to covering fixed costs.