When Inflation Pushes Up Prices in the Economy,input Prices Are

question 119

Multiple Choice

When inflation pushes up prices in the economy,input prices are ________ and revenues ________ in the short run.

• A) flexible; remain unchanged
• B) sticky; increase
• C) sticky; remain unchanged
• D) flexible; decrease
• E) flexible; increase

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Definitions:

Goal Congruence

The alignment of individual objectives and actions with the overall goals and objectives of an organization.

Performance Measures

Quantitative and qualitative metrics used to assess the effectiveness or efficiency of operations, employees, or overall organizational performance.

Transfer Price

The price charged for goods or services transferred between departments or divisions within the same company as part of the internal sales process.

Opportunity Cost

The sacrifice of possible benefits from other options when selecting a specific one.