Real Income Is Equal to ________ and a Relative Price

question 210

Multiple Choice

Real income is equal to ________ and a relative price is given by ________.

• A) the dollar amount of income divided by the dollar price of a good; the dollar price of one good divided by the dollar price of the good whose relative price is being calculated
• B) the dollar price of one good divided by the dollar price of the good whose relative price is being calculated; the dollar amount of income divided by the dollar price of a good
• C) The dollar price of one good divided by the dollar price of another good; the dollar price of one good divided by the dollar price of the good whose relative price is being calculated
• D) the dollar amount of income; real income divided by the dollar amount of income

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Definitions:

Neoclassical Economics

An economic theory that focuses on how the perception of utility and costs, along with the distribution of resources, determine price and production in a competitive market.

Behavioral Economics

A field of study that examines how psychological, cognitive, emotional, cultural, and social factors affect economic decisions and the consequences of those decisions.

Neoclassical Economics

An approach in economics focusing on the determination of goods, outputs, and income distributions in markets through supply and demand.

Behavioral Economics

A branch of economics focused on understanding how a range of factors, including psychological, cognitive, emotional, cultural, and social elements, influence the economic decision-making processes of both individuals and institutions.