The Decision Whether to Change Prices Frequently or Infrequently Is

question 46

Multiple Choice

The decision whether to change prices frequently or infrequently is an application of the:

• A) principle of comparative advantage.
• B) scarcity principle.
• C) principle of increasing opportunity cost.
• D) cost-benefit principle.

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Definitions:

Money Supply

The total amount of monetary assets available in an economy at a specific time.

Interest Rates

The cost of borrowing money or the return on investment for savings and loans, usually expressed as a percentage.

Consumption And Investment

The activities of spending on goods and services for current use and investing in assets for future returns.

Capital Goods Industries

Capital goods industries are sectors of the economy that produce machinery, equipment, and supplies used in the manufacturing and production of other goods rather than for direct consumption.