The price of a new textbook increased from $60 to $75 in one year, while the price of a used textbook increased by 25 percent. What happened to the relative price of a used textbook?
A) It increased by 25 percent.
B) It increased by 10 percent.
C) It remained constant.
D) It can't be determined without knowing the nominal price of the used textbook in at least one of the years.
C
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Anne works as a babysitter. She uses her wage as a babysitter to buy a pair of roller skates. In this case, money served the function of ________
A) a medium of exchange B) a unit of account C) a store of value D) a means of deferred payment
If a monopolist raises its price
A) it raises the barriers to entry. B) the quantity demanded increases. C) the quantity demanded remains the same. D) the quantity demanded decreases.
Which of the following best reflects the ability-to-pay philosophy of taxation?
A. A tax on residential property. B. A progressive income tax. C. An excise tax on gasoline. D. An excise tax on coffee.
Supporters of the World Trade Organization contend that it:
A. Imposes safeguards for worker safety in member nations B. Weakens the environmental laws in member nations C. Undermines minimum wage laws in member nations D. Liberalizes trade among member nations