Which of the Following Is True

question 25

Multiple Choice

Which of the following is true?

• A) Anticipated inflation is an increase in the price level that comes as a surprise, at least to most individuals.
• B) Unanticipated inflation is a change in the price level that is widely expected.
• C) Decision makers are generally able to anticipate slow steady rates of inflation with a fairly high degree of accuracy.
• D) Inflation will increase the prices of goods and services that households purchase but not the wage rates of workers.

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Definitions:

Average Cost

The cost per unit of output, computed by dividing the total cost of production by the number of units produced, often used to assess the efficiency and profitability of production processes.

Antitrust Laws

Legislation enacted to prevent new monopolies from forming and to break up those that already exist in order to ensure fair competition in the market.

Social Welfare

A system that provides assistance to needy individuals and families in a society through various forms of financial aid, health care, and social services.

Sherman Antitrust Act

A landmark federal statute passed in 1890 aimed at promoting economic competition by prohibiting monopolies and other activities that restrict trade.