Suppose $100 Buys Less in the Year 2013 Than in 2000

question 16

Multiple Choice

Suppose $100 buys less in the year 2013 than in 2000. Then we can say that

• A)money's store of value has decreased.
• B)money's store of value has increased.
• C)the economy must have been growing rapidly between 2000 and 2013.
• D)the economy must have been growing slowly between 2000 and 2013.

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Definitions:

Fixed Costs

Expenditures on items like rent, salaries, and insurance that stay fixed, irrespective of production or sales figures.

Contribution Margin Ratio

A financial metric that calculates the percentage of sales revenue that exceeds variable costs, contributing toward fixed costs and profit.

Break-Even Point

The break-even point is the point at which total costs and total revenue are equal, resulting in no net loss or gain, and is used for analyzing the financial viability of a product or service.

Pretax Income

The amount of income earned by a business before the deduction of taxes; it is found by subtracting all expenses, except tax expenses, from revenues.