Which of the Following Statements Is Correct

question 10

Multiple Choice

Which of the following statements is correct?

• A) Economic variables measured in physical units are nominal variables, and economic variables measured in monetary units are real variables
• B) Economic variables measured in physical units are real variables, and economic variables measured in monetary units are nominal variables
• C) Economic variables measured in physical units are actual variables, and economic variables measured in monetary units are nominal variables
• D) Economic variables measured in physical units are real variables, and economic variables measured in monetary units are actual variables

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Definitions:

New Firms

Companies that have recently entered the market, bringing innovation, competition, and potentially disrupting established market dynamics.

Existing Firms

Companies or businesses that are currently operational and active within a market or industry.

Advertising

A form of marketing communication used to promote or sell something, usually a business's product or service.

Product-Variety Externality

External effects that occur when the introduction of new products benefits consumers more than the producers, typically by increasing the variety of goods available.