As the Rate of Inflation Increases, the Increased Cost to a Consumer

question 97

Multiple Choice

As the rate of inflation increases, the increased cost to a consumer of more frequent trips to the bank to make cash withdrawals represents an increase in the:

• A)shoe leather costs of inflation.
• B)erosion of the purchasing power of cash.
• C)tax distortion generated by inflation.
• D)"noise" in the price system.

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Definitions:

Average Range

The mean difference between the highest and lowest values in a set of observations, used as a measure of statistical dispersion.

Inspection Samples

Specific items taken from a larger batch or lot for the purpose of testing or examining them to ensure they meet specified standards.

Control Limits

The boundaries in control charts that signal when a process is out of control and corrective action may be needed.

Sample Range

The difference between the highest and lowest values in a set of sample data, used as a measure of variability.