Michael Chang Buys Only Tennis Rackets During a Particular Year

question 69

Multiple Choice

Michael Chang buys only tennis rackets during a particular year.During the year in question,the price of all goods rises by 10 percent on average,but the price of tennis rackets remains the same.Which statement is correct?

• A) Michael benefits from inflation.
• B) Michael does not experience inflation because he only buys tennis rackets.
• C) No matter what Michael buys,he experiences inflation.
• D) Michael does not benefit from inflation.
• E) We can't conclude anything from the information given.

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Definitions:

Economics

The social science concerned with how individuals, institutions, and society make optimal (best) choices under conditions of scarcity.

Regulatory Capture

A situation where regulatory agencies, created to act in the public's interest, instead advance the commercial or special concerns of the industry or sector they are supposed to regulate.

Environmental Protection

The practice of safeguarding the natural environment through conservation, regulation, and sustainable practices.

Consumer Safety

Refers to the efforts and policies that protect consumers from products, services, or practices that may cause harm.