A Cost Due to an Increase in Activity Is Called

question 146

Multiple Choice

A cost due to an increase in activity is called

• A) the total cost.
• B) a negative marginal benefit.
• C) a marginal cost.
• D) an incentive loss.

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Definitions:

Financial Crisis

A broad term for a situation when financial assets rapidly lose a significant part of their nominal value.

Contractionary Monetary Policy

A central banking strategy involving the increase of interest rates or reduction of the money supply to decrease inflation and slow down economic growth.

Short-Run Phillips Curve

A curve illustrating an inverse relationship between the rate of inflation and the rate of unemployment in the short term.

Disinflation

A decrease in the rate of inflation, indicating a slowdown in the rate at which prices for goods and services rise.