If the Price of a Candy Bar Is $1 and the Price

question 144

Multiple Choice

If the price of a candy bar is $1 and the price of a fast food meal is $5, then the

• A) relative price of a fast food meal is 5 candy bars per fast food meal.
• B) money price of a fast food meal is 1/5 of a candy bar per fast food meal.
• C) money price of a candy bar is 1/5 of a fast food meal per candy bar.
• D) relative price of a candy bar is 5 fast food meals per candy bar.

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Definitions:

Revenue

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

FICA Taxes

Taxes levied by the Federal Insurance Contributions Act in the United States to fund Social Security and Medicare programs, deducted from workers' paychecks.

Income Taxes

Taxes imposed by a government on individuals or entities based on their income or profits.

Deadweight Loss

A loss of economic efficiency that occurs when the equilibrium outcome is not achievable or not achieved in a market.