Question

On a given morning, Franco sold 40 pairs of shoes for a total of $80 at his shoe store. a. Both the $80 and the quantity of shoes are nominal variables. b. The $80 is a nominal variable. The quantity of shoes is a real variable. c. Both the $80 and the quantity of shoes are real variables. d. The $80 is a real variable. The quantity of shoes is a nominal variable.

Answer 1

Answer:

b. The $80 is a nominal variable. The quantity of shoes is a real variable. 

Explanation:

A nominal variable is a variable that hasn't been adjusted for inflation. Prices quoted in the purchase of goods and services are usually nominal variables.

Nominal variable = real variable + inflation rate

Real variable is a variable that has been adjusted for inflation

Real variable = nominal variable - inflation rate.

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