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The area of a parallelogram is calculated using the formula A = bh, where A represents the area, b is the length of the base, and h is the height of the parallelogram. This formula is derived from the concept that the area is essentially the amount of space contained within the figure.

To visualize this, if you imagine a parallelogram being "sliced" vertically, the height (h) represents the perpendicular distance from the base to the top side of the figure. When you multiply the base (b) by this perpendicular height, you determine the total area. It's important to remember that this measurement of height must be perpendicular to the base for the calculation to be accurate.

In contrast, other choices present incorrect formulations. Some suggest multiplying the base by 2 or adding the base and height, neither of which accurately reflects how area is measured in geometric figures. Additionally, including a cubic term in one of the options incorrectly implies a three-dimensional volume rather than the two-dimensional area of a parallelogram.