The rate at which someone can swap money for a good is called the _____ of the good.
A) Price
B) Opportunity cost
C) Total cost
D) Rate of substitution

Question

Quizplus · Accepted Answer

The rate at which someone can swap money for a good is the price of the good, which is typically measured in a specific currency (e.g. dollars, euros, yen). Therefore, choice A is the correct answer. Choice B refers to the value of the next best alternative forgone, not the rate of exchange for a good. Choice C refers to the sum of all expenses incurred in producing a good, not the rate of exchange for a good. Choice D refers to the rate at which someone is willing to trade one good for another, which is not necessarily the same as the rate of exchange for money and a good.

The Rate at Which Someone Can Swap Money for a Good