An Inflation Fallacy Is

question 47

Multiple Choice

An inflation fallacy is

• A)when prices are falling and the economy is growing.
• B)that inflation directly lowers living standards.
• C)people think that prices are rising much higher than they actually are.
• D)prices always deflate in a recession.

---

Definitions:

Cost Center

A division or unit within an organization that does not directly add to profit but still incurs costs, often analyzed for budgeting and cost control.

Profit Center

A branch or division of a company that is directly responsible for generating its own revenue and profits.

Cost Of Goods Sold

Direct expenditures involved in producing the products a company sells, inclusive of materials and labor.

Gross Profit

The difference between sales revenue and the cost of goods sold before deducting operating expenses, interest, and taxes.