The "real" price of a good is known as
A) the absolute price of the good.
B) the dollar price of the good since we use dollars in the United States.
C) relative price of the good.
D) the price actually paid for a good instead of the sticker price.

Question

Quizplus · Accepted Answer

The real price of a good is called the relative price, which measures the cost of the good in terms of its opportunity cost, or what must be given up in order to obtain the good. This takes into account factors such as inflation and changes in income, making it a more accurate measure of the true cost of a good over time. The absolute price (A) is not a commonly used term in economics, and the dollar price (B) is simply the nominal price of the good in a particular currency. The price actually paid (D) may vary from the sticker price due to discounts or other factors, but it does not necessarily represent the true cost of the good.

The "Real" Price of a Good Is Known as