The Difference Between an Absolute Price and a Relative Price

question 51

Multiple Choice

The difference between an absolute price and a relative price is that:

• A) absolute prices are based on costs of production,relative prices are based on market exchange.
• B) absolute prices are in terms of currency,relative prices are in terms of another good.
• C) absolute prices are in terms of another good,relative prices are in terms of currency.
• D) absolute prices never change,relative prices change with inflation.

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Definitions:

Telegraphic Speech

The early speech phase in children where sentences are formed with only essential words, omitting smaller ones or grammatical elements.

Bilingual Education

An educational approach that involves teaching academic content in two languages.

Bilingualism

The ability of an individual to speak and understand two languages.

Pragmatics

The field of linguistics that focuses on how language is used within social situations and how individuals generate and understand meanings via language.