A relative price is:

A. a measure of overall prices at a particular point in time.
B. the percentage change in a price index such as the CPI.
C. the rate of inflation.
D. the price of a specific good in comparison to the prices of other goods and services.


Answer: D

Economics

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Suppose Cathy and Lewis work in a bakery making pies and cakes. Suppose it takes Cathy 1.5 hours to make a pie and 1 hour to make a cake, and suppose it takes Lewis 2 hours to make a pie and 1.5 hours to make a cake. Which of the following statements is correct?

A. Cathy has a comparative and absolute advantage in pies. B. Cathy has a comparative advantage in pies, and Lewis has an absolute advantage in pies. C. Lewis has a comparative and absolute advantage in pies. D. Lewis has a comparative advantage in pies, and Cathy has an absolute advantage in pies.

Economics

The government sector balance is equal to ________

A) net taxes minus government purchases of goods and services B) tariffs minus imports C) saving minus investment D) exports minus imports

Economics

If a firm has a market share that exceeds ________ percent, most courts will conclude that the firm is a monopoly and if the market share exceeds ________ percent, the courts are likely to conclude that the firm is coming "dangerously close" to being a monopoly.

A) 99; 50 B) 75; 50 C) 90; 75 D) 80; 60

Economics

Which of the following is NOT a determinant of the demand for gasoline?

A. The price of diesel B. Consumers' incomes C. The supply of gasoline D. The price of automobiles

Economics