The Price of a First-Class Stamp in 1957 Was 3

question 57

Multiple Choice

The price of a first-class stamp in 1957 was 3 cents, and it is 45 cents in 2012. From this we know that

• A) both the relative and the absolute price of first-class stamps increased from 1957 to 2012.
• B) the money price of first-class stamps increased from 1957 to 2012 but the absolute price of first-class stamps stayed constant.
• C) the money price of first-class stamps increased from 1957 to 2012 and the relative price of first-class stamps decreased.
• D) the money price of first-class stamps increased from 1957 to 2012, but we can't tell if the relative price of first-class stamps increased or decreased without more information.

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Definitions:

Premium

The amount by which the price of something exceeds its principal or nominal value, often applied to bonds, insurance policies, and preferred stock.

Forward Contract

A personalized agreement between two entities to purchase or sell a specific asset at a predetermined price on a later date.

Thermal Compressors

Devices that use heat energy to compress a gas, often used in heat pump and refrigeration systems.

Spot Rate

The current market price at which a currency can be bought or sold for immediate delivery.