A Rise in the Price Level Brings a ________ in the Real

question 55

Multiple Choice

A rise in the price level brings a ________ in the real wage rate that ________ profits which leads to ________ production.

• A) fall; increases; increasing
• B) rise; reduces; decreasing
• C) rise; increases; decreasing
• D) rise; reduces; increasing
• E) fall; decreases; decreasing

---

Definitions:

Explicit Costs

Direct, out-of-pocket payments for resources or services used in the production process.

Accounting Profits

Represents the difference between total revenue and explicit costs of a firm.

Economic Profit

The difference between the revenue received from the sale of an output and the opportunity cost of the inputs used, often considered in terms of exceeding the company's normal profit level.

Entrepreneur's Talent

The unique set of skills, insights, and abilities that an entrepreneur possesses, contributing to their success in creating and running businesses.