Menu Costs of Inflation

question 103

Multiple Choice

Menu costs of inflation

• A) literally mean that restaurants are the most affected by inflation because they are constantly printing new menus.
• B) are best described as the costs firms incur by having to change prices either on paper or in the computer.
• C) are the costs one incurs when shopping for lower prices.
• D) are the costs involved with only those goods whose prices are rising faster than inflation; this basket of goods represents the "menu."
• E) mean that because we can choose what goods we consume,we have a menu of inflation from which to choose and we can "opt out" by consuming a different "basket" of consumer goods.

---

Definitions:

Aversive Racism

A form of racism that occurs in individuals who hold egalitarian values and believe they are not prejudiced but still possess negative beliefs or feelings about racial groups subconsciously.

Bona Fide Pipeline

A legitimate and authentic sequence or series of processes through which something is delivered or made available.

Prejudice

A preconceived opinion that is not based on reason or actual experience, often involving discriminatory thoughts or beliefs about particular groups.

Ambiguous Information

Data or messages that can be understood or interpreted in more than one way, often leading to confusion or multiple meanings.