If Your Rent Increases from $1,000 to $1,100 Over a Period

question 150

Multiple Choice

If your rent increases from $1,000 to $1,100 over a period of one year and your income rises from $6,000 to $7,000,your nominal income has

• A)Increased,but your real income has decreased.
• B)Increased,and your real income has increased.
• C)Decreased,and your real income has decreased.
• D)Increased,but your real income has remained the same.

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Definitions:

Sales

In the context of business, sales refer to the transactions and activities involved in selling goods or services to customers, often measured in terms of the total revenue generated.

Operating Cycle

The total time period from the acquisition of resources for production to the collection of payments from the sale of the goods or services produced.

Sales

The total amount of goods or services sold by a company, also a critical indicator of a company's performance and market demand.

Cost of Goods Sold

Cost of Goods Sold is the total of all expenses directly related to the manufacturing or purchasing of products that a company sells during a period.