A Difference Between an Interval Scale and a Ratio Scale

question 5

Multiple Choice

A difference between an interval scale and a ratio scale is

• A) an interval scale has equal intervals;a ratio scale does not.
• B) a ratio scale has equal intervals;an interval scale does not.
• C) an interval scale has an absolute zero point;a ratio scale does not.
• D) a ratio scale has an absolute zero point;an interval scale does not.

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Definitions:

Profit

Profit is the financial gain that is achieved when the amount of revenue gained from a business activity exceeds the expenses, costs, and taxes involved in sustaining the activity.

Inverse Demand Function

A mathematical representation showing how the quantity demanded of a good or service changes as its price changes, holding everything else constant.

Unit Tax

A tax that is imposed on a product based on a fixed amount per unit, rather than a percentage of the price.

Output

The cumulative quantity of products or services generated by a business, sector, or economic system over a given timeframe.