Because the Inflation Rate Is So High Wanda Refuses to Carry

question 100

Multiple Choice

Because the inflation rate is so high Wanda refuses to carry cash. Even though it is a bother, she now goes to the ATM twice as often to get the cash she needs. Wanda's actions are an example of the

• A)tax distorting costs of inflation.
• B)uncertainty costs of inflation.
• C)shoe-leather costs of inflation.
• D)tax costs of inflation.
• E)confusion costs of inflation.

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Definitions:

Punitive Damages

Compensation awarded to a plaintiff beyond actual damages to punish the defendant for egregious conduct and deter future similar acts.

Substantial Performance

A principle in contract law that allows a contracting party to be considered as having fulfilled its obligations, so long as the crucial elements of the contract have been completed, even if minor details are unfinished.

Nominal Performance

A minimal or token action that barely meets the terms of a contract, often used to avoid breaching the agreement.

Substitution

In law or economics, the act of replacing one party or element of a contract with another.