If We Compare the U

question 186

Multiple Choice

If we compare the U.S.experience since 1970 with that of the 1960s,we find that,on average

• A)the rate of unemployment and the rate of inflation have both been lower since 1970 than during the 1960s.
• B)the rate of unemployment has been lower since 1970 than during the 1960s,but the rate of inflation has been higher.
• C)the rate of inflation has been lower since 1970 than during the 1960s,but the rate of unemployment has been higher.
• D)the rate of unemployment and the rate of inflation have both been higher since 1970 than during the 1960s.

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Definitions:

Sales Revenue

The total amount earned from the sale of goods or services before any costs or expenses are deducted.

Direct Materials

Raw materials that are directly traceable to the manufacturing of a product and can be easily quantified and allocated to that product.

Break-even Point

The production level at which total revenues equal total expenses, and there is neither profit nor loss.

Contribution Margin Ratio

A financial metric that shows the percentage of sales revenue that exceeds variable costs, contributing to covering fixed costs and generating profit.