The price of a new textbook is $120 in one year and is $150 two years later, while the price of a used copy of the text increased from $40 to $60. The relative price of a new textbook
A. decreased from 3 to 2.5.
B. increased from 3 to 4.5.
C. decreased from 0.8 to 0.67.
D. remained constant.
Answer: A
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Pumpkin growing is a perfectly competitive industry. Suppose that pumpkin growers are all incurring an economic loss. What happens as time passes? What is the long-run equilibrium outcome?
What will be an ideal response?
Refer to Figure 9-1. Suppose the government allows imports of leather footwear into the United States. The market price falls to $18. What is the value of consumer surplus?
A) $0 B) $270 C) $305 D) $320
Debt service is the percent of:
A. GDP that is owed in debt. B. disposable income consumers have to pay for their debts. C. the total value of household debt that banks pay to create the loans. D. the total value of household debt that consumers pay in interest.
When a Country A's overall balance is positive:
a. The Overall balance cannot be positive. It must be zero. b. Country A's central bank is buying the domestic currency in the foreign exchange market. c. Country A's central bank is buying foreign currencies in the foreign exchange market. d. Country A is losing reserve assets.