If the Price of Pizzas Has Risen from $4 to $5

question 175

Multiple Choice

If the price of pizzas has risen from $4 to $5 at the same time that the price of an hour of spinning class has risen from $20 to $30, then

• A)pizzas have become relatively more expensive.
• B)spinning classes have become relatively more expensive.
• C)the relative prices of pizzas and spinning classes have remained constant.
• D)workers' real income must have decreased.

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Definitions:

Operating Expenses

Costs associated with the day-to-day operations of a business, such as wages, rent, and utilities, excluding capital expenditures and cost of goods sold.

Profitability Ratios

Financial metrics used to assess a business's ability to generate earnings relative to its revenue, assets, equity, or other financial metrics.

PE Ratio

Price-to-Earnings Ratio, a valuation metric that compares the current share price of a company to its per-share earnings.

Dividends Per Share

Dividends per share (DPS) is a financial ratio that indicates how much a company pays out in dividends each year relative to its share price.