Compared to Other Industrial Nations, Inflation Rates in the United

question 167

Multiple Choice

Compared to other industrial nations, inflation rates in the United States are

• A)significantly higher.
• B)significantly lower.
• C)significantly higher than those in Europe and significantly lower than those in Japan.
• D)neither significantly higher nor significantly lower.

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Definitions:

Unit Contribution Margin

The dollars available from each unit of sales to cover fixed costs and provide operating profits.

Fixed Costs

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

Unit Contribution Margin

The difference between the selling price per unit and the variable cost per unit of a product.

Break-even Point

The level of production or sales at which total revenues equal total expenses, and the business makes neither a profit nor a loss.