When the Prices of Final Goods and Services Increase More

question 27

Multiple Choice

When the prices of final goods and services increase more quickly than the prices of inputs:

• A) the prices of some inputs are sticky.
• B) labor costs are increasing.
• C) producers are making short-run decisions.
• D) technology is improving.

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Definitions:

Competence

The ability to do something successfully or efficiently, reflecting a person's knowledge or skill.

Autonomy

The capacity to make an informed, uncoerced decision; often associated with the ability to act on one's own values and interests.

Hunger

A physical sensation and physiological need prompting the desire to eat, driven by the body's energy requirements.

Esteem Needs

in Maslow's hierarchy of needs, the fourth level, including self-esteem, confidence, achievement, respect of others, and respect by others.