Which of the following statements is correct?
A) Economic variables measured in physical units are nominal variables, and economic variables measured in monetary units are real variables
B) Economic variables measured in physical units are real variables, and economic variables measured in monetary units are nominal variables
C) Economic variables measured in physical units are actual variables, and economic variables measured in monetary units are nominal variables
D) Economic variables measured in physical units are real variables, and economic variables measured in monetary units are actual variables

Question

Quizplus · Accepted Answer

Economic variables measured in physical units are real variables because they are measured in terms of their physical quantities or volumes. On the other hand, economic variables measured in monetary units are nominal variables because they are measured in terms of their monetary values, which can be affected by changes in prices over time. Therefore, option B is the correct statement.

Which of the Following Statements Is Correct