Economists Feel That Incomes Policy, If Successful in Controlling Inflation

question 97

Multiple Choice

Economists feel that incomes policy, if successful in controlling inflation:

• A) is the most desired policy because it allows government to decrease the rate of inflation relatively quickly.
• B) causes an underallocation of resources to the production of products for which there is high demand.
• C) causes an underallocation of resources to the production of products for which there is low demand.
• D) is very cost efficient.

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Definitions:

Generating Blood Pressure

The process by which the heart and blood vessels work together to maintain the force of the blood against the walls of the arteries.

Pulmonary Circulation

The portion of the cardiovascular system which carries deoxygenated blood away from the heart, to the lungs, and returns oxygenated blood back to the heart.

Cardiac Tamponade

A medical condition where fluid accumulates in the pericardium (the sac around the heart), leading to decreased heart function.

Pleural Cavity

The slim, fluid-filled gap located between the two pleural layers surrounding each lung, which plays a role in the mechanics of breathing.