One Explanation That Economists Offer to Explain Why a Decline

question 21

Multiple Choice

One explanation that economists offer to explain why a decline in the unemployment rate can raise the rate of inflation is that

• A) firms will be put in a position of competing more intensely for scarce resources.
• B) people will pay higher prices because competition among suppliers intensifies.
• C) workers will focus more directly on protecting their jobs.
• D) firms will refuse to shift higher labour costs along to consumers for fear of losing their markets.

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Definitions:

Obligation

A duty or commitment that an individual is bound to, either legally, morally, or emotionally.

Group Norms

Shared guidelines or rules of behavior that are accepted and followed by members of a group, influencing how they act and interact.

Temperaments

Physiological dispositions to respond to the environment in certain ways; they are present in infancy and in many nonhuman species and are assumed to be innate.

Personalities

The combination of characteristics or qualities that form an individual's distinctive character.