If the Price of Pizzas Has Risen from $4 to $5

question 72

Multiple Choice

If the price of pizzas has risen from $4 to $5 at the same time that the price of an hour of aerobics class has risen from $20 to $30, then

• A) pizzas have become relatively more expensive.
• B) aerobics classes have become relatively more expensive.
• C) the relative prices of pizzas and aerobics classes have remained constant.
• D) workers' real income must have decreased.

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Definitions:

Return on Investment

A financial metric used to evaluate the efficiency or profitability of an investment, calculated as the net gain from an investment relative to its cost.

Nonprogrammed Decision

A decision made in response to an unusual, unpredictable, and unique problem or opportunity, often requiring creative solutions.

Ratify

To formally approve or adopt an agreement or treaty, often after negotiation or deliberation.

Veto

The power to unilaterally stop or reject a decision or proposal.