Which term is defined as the price of a gem divided by its carat weight?

• A. Exchanging information and developing contacts among people with a common professional or special interest.
• B. A set of policies and processes that enable an organization to reduce environmental impacts and increase operating efficiency.
• C. A premium price paid for selecting stones from a parcel.
• D. The price of a gem divided by its carat weight.

Answer: (D)

Price per carat is the price of a gem divided by its carat weight. This metric normalizes value so you can compare stones of different sizes on an apples-to-apples basis. Even stones with the same weight can have very different price per carat because of quality factors like color, clarity, and cut, which drive the overall price.

For example, a 0.50 ct gem priced at $600 has a price per carat of $1,200/ct. A 1.00 ct gem priced at $1,000 has a price per carat of $1,000/ct. The larger stone may have a higher total price, but its value per unit of weight is different, illustrating why price per carat is the useful measure.

Other options describe things that are not price per carat—networking, environmental policy, or a premium for selecting stones from a parcel.