In a market economy, what does the real, or inflation-adjusted, price of a resource measure?
A) contribution to revenue
B) relative scarcity
C) relative importance
D) contribution to efficiency

Question

Quizplus · Accepted Answer

The real or inflation-adjusted price of a resource measures its relative scarcity in a market economy. As the availability of a resource decreases, its price increases. Adjusting for inflation allows for a more accurate comparison of prices over time. The other options - contribution to revenue, relative importance, and contribution to efficiency - may influence the price of a resource, but they are not the primary factors affecting its real price.

In a Market Economy, What Does the Real, or Inflation-Adjusted