Which of the following statements is true?
A)The money price of a good is usually the same as the time price for most consumers.
B)The money price is always more than the time price.
C)The money price is usually more for high-wage workers than for low-wage workers.
D)The time price is usually less for low-wage workers than for high-wage workers.
E)The time price of a good is directly proportional to the money price.

Question

Quizplus · Accepted Answer

The time price is the amount of time that must be spent working to earn the money to purchase the good, while the money price is the amount of money required to purchase the good. Low-wage workers must spend more time working to earn the same amount of money as high-wage workers, so their time price is usually higher. Therefore, the time price is usually less for high-wage workers than for low-wage workers.

Which of the Following Statements Is True