After you have created your PayPal account, find the Tools and [PalPal Buttons] option and [Create new button]. You will get something like below.
- Change to "Buy Now" button
- Enter a name
- Tick the "Add drop-down menu with price/option"
- Enter a name for the option
- Enter the rates and prices.
- Click "Done"
- Click "Create Button"
....... continued below

Please Note, the example above is the most common method of adding a PayPal Button. You will find more information on the PayPal site
Now you need to "Copy" the HTML Code created
- Click [Select Code]
- Right Click on Code
- Click [Copy]
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