Suppose that the price of butter is $3 per pound and the price of margarine is $2 per pound. If the price of butter rises to $3.90 and the price of margarine rises to $2.20, then the absolute price of butter has _______________ and the relative price of butter has _______________
a. risen; fallen
b. fallen; risen
c. risen; risen
d. fallen; fallen
Ans: c. risen; risen
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Public choice deals with
A) negative and positive externalities. B) public-sector decision making. C) how people choose between several mutually exclusive options. D) bond, stock, and money markets. E) none of the above
Considering only their direct effect on income, which of the following policies is least likely to reduce a country's trade deficit?
A. A decrease in government spending B. An increase in taxes C. A decrease in the money supply D. A cut in taxes
Which of the following prices could represent Eli's willingness to pay for a baseball glove if he observed the market price of $43 and decided not to buy one?
A. $37 B. $50 C. $45 D. None of these could represent Eli's willingness to pay.
The additional cost associated with one more unit of an activity is the ______ cost.
Fill in the blank(s) with the appropriate word(s)