Inflation Is Defined As

question 9

Multiple Choice

Inflation is defined as:

• A) The level of prices at full-employment.
• B) An increase in the price of expensive items,such as cars.
• C) An increase in the average level of prices.
• D) An increase in relative prices.

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Definitions:

Retained Earnings

The portion of a company's profits that is kept or retained and not paid out as dividends to shareholders.

Operating Income

The profit realized from a business's operations after deducting operating expenses from gross profit.

Dividends

Financial distributions to a corporation's shareholders, usually coming from the business's earnings.

Quantity Variance

A variance that is computed by taking the difference between the actual quantity of the input used and the amount of the input that should have been used for the actual level of output and multiplying the result by the standard price of the input.