A Relative Price Is

question 379

Multiple Choice

A relative price is

• A) the number of dollars that must be given up in exchange for the good.
• B) also called the money price.
• C) not an opportunity cost.
• D) the ratio of one price to another price.

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Definitions:

Incentive Function

The role of incentives in influencing the behavior and decisions of individuals or organizations.

Competitive Markets

Markets characterized by a large number of buyers and sellers, where no single entity controls the market prices.

Resource

Any physical or virtual entity of limited availability that needs to be consumed to obtain a benefit, including natural resources, human resources, and financial resources.