When the Price Level Falls,the Number of Dollars Needed to Buy

question 127

Multiple Choice

When the price level falls,the number of dollars needed to buy a representative basket of goods

• A)increases,so the value of money rises.
• B)increases,so the value of money falls.
• C)decreases,so the value of money rises.
• D)decreases,so the value of money falls.

---

Definitions:

Equilibrium

A condition where the supply and demand in the market are in equilibrium, leading to stable pricing.

Economies of Scale

Economies of scale refer to the cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output generally decreasing with increasing scale.

Free Trade

An economic policy that allows for the unrestricted import and export of goods and services between countries without tariffs or quotas.

Production Costs

The expenses involved in manufacturing a product, including raw materials, labor, and overhead.