What is the distinction between a money price and a relative price?
What will be an ideal response?
The money price of a good is the dollar amount that must be paid for it. The relative price of a good is its money price expressed as a ratio to the money price of another good. Thus the relative price is the amount of the other good that must be foregone to purchase a unit of the first good.
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The distinction between physical and financial capital is that
A) physical capital is equal to financial capital minus depreciation. B) financial capital depreciates and physical capital does not. C) the value of financial capital depends on the amount of available physical capital. D) physical capital is equal to financial capital plus depreciation. E) financial capital is used to purchase and operate physical capital.
Refer to Figure 4-9. How much of the tax is paid by buyers?
A) $8 B) $5 C) $4 D) $3
Economists measure a market's domination by a small number of firms with a statistic called the
All Gini coefficients must lie between 0 and 1. The lower the value
A) the closer the income distribution is to being equal. B) the lower the degree of poverty according to the federal government's definition of poverty. C) the greater the degree of poverty. D) the more unequal the income distribution.