The Persistent Increase in the Prices of Goods and Services

question 105

Multiple Choice

The persistent increase in the prices of goods and services is called:

• A)deflation.
• B)predatory prices.
• C)inflation.
• D)recession.
• E)bid rigging.

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Definitions:

Economic Issues

Problems or challenges facing an economy, ranging from unemployment to inflation, affecting the well-being of its citizens.

Median Voter Theorem

A theory that suggests the outcome of a majority vote is most likely to match the preferences of the median voter.

Majority-Rule

A decision-making process that follows the principle that the opinions or preferences of more than half of the members of a group have the authority to make decisions binding on the whole group.

Median Voter

A theoretical concept in political science and economics suggesting that the outcome of a majority rule voting process will reflect the preferences of the median voter when preferences are single-peaked.