A relative price is a comparison of the price of one good or service to another, often expressed as a ratio. It is not necessarily equal to a money price, nor is it a price expressed solely in terms of money. Getting paid for babysitting your cousin would simply be a money price for your labor, and not necessarily related to relative prices.

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A Relative Price Is

Question 39

Multiple Choice

A relative price is

A) equal to a money price.
B) what you get paid for babysitting your cousin.
C) the ratio of one money price to another.
D) a price expressed in terms of money.

Correct Answer: