A relative price is the
A) slope of the demand curve.
B) difference between one money price and another.
C) slope of the supply curve.
D) ratio of one money price to another.
D
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If the demand for farm products is income elastic, that would mean that farm products were a necessity
Indicate whether the statement is true or false
A price index is designed to measure
a. changes in the general level of employment across time periods. b. changes in the quantity of output produced across time periods. c. the market value of output produced during the current period with the value of output produced during an earlier time period. d. the cost of buying a market basket of goods at a point in time relative to the cost of buying the same market basket during an earlier time period.
The term market failure refers to
a. a situation in which the market on its own fails to allocate resources efficiently. b. an unsuccessful advertising campaign which reduces demand for a product. c. a situation in which competition among firms becomes ruthless. d. a firm that is forced out of business because of losses.
A progressive income tax means that those with a higher income pay
A. a higher percentage of their income in taxes than low-income people. B. the same percentage of their income in taxes as low-income people. C. a lower percentage of their income in taxes than low-income people. D. all the taxes in the economy.