Which One of the Following Statements Is FALSE

question 2

Multiple Choice

Which one of the following statements is FALSE?

• A) Generally, what matters most to consumers is what a good costs in dollars.
• B) The relative price of a good is its price measured relative to the price of other goods.
• C) The nominal price of a good is its price measured in current dollars.
• D) When the price of beer goes up by the same proportion as the prices of all other goods, the relative price of beer does not change.

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Definitions:

Obsessive-compulsive

Relating to or characterized by persistent, unwanted thoughts (obsessions) and repetitive, ritualistic behaviors (compulsions) which one feels driven to perform.

Ritualistic Behavior

Repeated actions performed in a specific sequence, often with symbolic meaning, and sometimes related to cultural or religious practices.

Stubborn

Showing determination not to change one's attitude or position on something, especially in spite of good arguments or reasons to do so.

Customary Pricing

Setting prices based on what is traditionally expected or accepted within the market or among competitors.