If the Price of Good X Is $90 and the Price

question 31

Multiple Choice

If the price of good X is $90 and the price of good Y is $30,it follows that the relative price of one unit of good Y is ___________ unit(s) of good X.

• A) 0.33
• B) 1.33
• C) 3.00
• D) 2.00
• E) There is not enough information to answer the question.

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Definitions:

Profit and Loss System

A financial statement that shows the revenue, costs, and expenses incurred during a specific period of time.

Business Risk

The possibility of experiencing financial loss or failure inherent in operating a business.

Market System

A market system is an economic system in which decisions regarding investment, production, and distribution are based on supply and demand.

Circular Flow Model

An economic model that depicts how money and products move through an economy, showing the interactions between households and businesses.