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) increased from 3 to 4.5.
B) decreased from 0.8 to 0.67.
C) decreased from 3 to 2.5.
D) remained constant.
Answer: C
You might also like to view...
Which of the following groups of countries are members of NAFTA?
A) the United States, Canada, and Mexico B) the United States, France, and Germany C) Japan, Canada, and Mexico D) the United States, Japan, and Mexico
Economists who study labor markets have documented
a. a general decline in the wages of college graduates over the last decade. b. an increasing trend in U.S. labor markets for employers to pay all costs of education and training. c. a decrease in the earnings gap between low-skill and high-skill workers over the past two decades. d. an increase in the earnings gap between low-skill and high-skill workers over the past two decades.
The synonym economists commonly use for additional is
A) capital. B) rational. C) marginal. D) economic.
The Fed engages in open market operations and sells government securities. The result is
A. lower interest rates. B. higher interest rates. C. interest rates remain unchanged since there is no reason to think bond prices changed. D. uncertain since more information is needed.