If the Price of Your Cell Phone Service Increases from $70

question 23

Multiple Choice

If the price of your cell phone service increases from $70 to $105 over a period of one year and your income rises from $1,500 to $1,525,your nominal income has

• A)Increased,and your real income has increased.
• B)Increased,but your real income has decreased.
• C)Decreased,and your real income has decreased.
• D)Increased, but your real income has remained the same.

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Definitions:

Annual Cost

The total expense associated with operating a business or owning an asset for one year.

First Year

Typically refers to the initial year of an educational course, professional endeavor, or any period's start.

Total Revenue

The total income generated from the sale of goods or services before any expenses are deducted.

Fourth Year

Typically refers to the final year of a standard four-year undergraduate degree program at a college or university.