Which of the Following Is Not Correct

question 7

Multiple Choice

Which of the following is not correct?

• A)The inflation rate is measured as the percentage change in a price index.
• B)For the last 40 or so years,U.S.inflation hasn't shown much variation from its average rate of about 2 percent.
• C)During the 19th century there were long periods of falling prices in the U.S.
• D)Some economists argue that the costs of moderate inflation are not nearly as large as the general public believes.

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Definitions:

Resource Demand

The need or desire for specific resources (labor, capital, land, etc.) driven by businesses and individuals in the production of goods and services.

MRC

The marginal rate of change, representing how a variable changes as another variable (typically quantity) increments by one unit.

MRP

Marginal Revenue Product; the additional revenue generated from employing one more unit of a resource, a key concept in labor economics and the theory of firm.

Labor Demand Schedule

A tabulation or curve showing the quantity of labor that firms wish to hire at each possible wage rate, displaying the negative relationship between wages and quantity of labor demanded.