Answer to Question #211296 in Microeconomics for hawalul

Question

(a)   With an illustration describe the term; numeraire good?

Answer 1

A numeraire good is an item with fixed price as one and all other prices are determined in times with the numeraire good.

For example a diamond is the numeraire with price one, then another good has the price 5. Ths means the price of the second good is 5 of the diamond