If the Relative Price of One Unit of Good X

question 95

Multiple Choice

If the relative price of one unit of good X is 5 units of good Y,then it follows that the absolute price of good X can be __________ and the absolute price of good Y can be __________.

• A) $20,000; $10,000
• B) $40,000; $8,000
• C) $30,000; $5,0000
• D) $5,000; $40,000
• E) a and c

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Definitions:

Sufficient Resources

The availability of adequate resources (including time, money, and manpower) to achieve a particular goal or complete a project.

Scarcity

A fundamental economic problem of having seemingly unlimited human wants in a world with limited resources.

Scarcity

A situation where limited resources are insufficient to satisfy all wants and needs.

Unlimited Income

A theoretical concept indicating there is no upper limit to an individual's or entity's income.