The Price of a Phone Call at a Pay Phone

question 329

Multiple Choice

The price of a phone call at a pay phone was 5 cents in 1950 and the price of a first-class stamp was 3 cents. In 2010, the pay phone costs 50 cents for a call and a first-class stamp costs 44 cents. We know that

• A) both the nominal and the relative price of phone calls increased from 1950 to 2010.
• B) both the nominal prices of phone calls and first-class stamps increased from 1950 to 2010, but the relative price of stamps increased and the relative price of phone calls decreased from 1950 to 2010.
• C) all prices increased from 1950 to 2010: Nominal prices of phone calls, first-class stamps, and the relative prices of phone calls and first-class stamps.
• D) both the nominal prices of phone calls and first-class stamps increased from 1950 to 2010, but we can't tell if the relative prices increased or decreased without more information.

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Definitions:

Statutes

Statutes are laws that have been enacted by a legislative body, such as a parliament or congress.

Leases

Legal agreements in which one party grants another the right to use a property, vehicle, or piece of equipment for a specified period in exchange for payment.

Duration

The measure of the length of time that an event lasts or a condition persists.

Statute of Frauds

A legal principle that requires certain types of contracts to be written and signed in order to be enforceable.