The Relative Price of a Good

question 10

Multiple Choice

The relative price of a good

• A)reflects its price in terms of units of other goods.
• B)is its price in terms of money.
• C)is equal to the average price of the good over the last 5 years.
• D)is a measure of the relative share of the consumer's income devoted to its purchase.
• E)is always measured in current dollars.

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Definitions:

Public Good

A good that is both nonexcludable and nonrival in consumption.

Fire Protection

A range of measures and services designed to minimize the impact of fire on people, property, and the environment.

Private Good

A good that is both excludable and rival in consumption.

Ice-Cream Cone

A sweet frozen dessert made from dairy and sugar, often served in a cone-shaped pastry or wafer.