Figure 20-1 Number of Poor

question 106

Multiple Choice

Figure 20-1
Number of Poor
-Refer to Figure 20-1.Between 1959 and 2001 the poverty rate has

• A) increased.
• B) decreased.
• C) stayed the same.
• D) moved in the opposite direction of the number of people in poverty.

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Definitions:

Fixed Costs

Costs that do not vary with the level of output or sales over the short term, such as rent or salaries.

Variable Costs

Costs that vary in direct proportion to changes in production or sales volume, such as materials and labor.

Operating Leverage

A measure of how revenue growth translates into growth in operating income, determined by the proportion of fixed costs to variable costs.

Variable Costs

Costs that change directly in proportion to changes in the volume of production or activity level, such as raw materials, labor costs directly tied to production, and utility costs for manufacturing facilities.