Without Adjustment, Inflation May Tend to Cause ________ Firms to Appear

question 150

Multiple Choice

Without adjustment, inflation may tend to cause ________ firms to appear more efficient and profitable than ________ firms, all else being the same.

• A) large; smaller
• B) older; newer
• C) smaller; larger
• D) newer; older

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Definitions:

Hindrance

Anything that restricts, obstructs, or interferes with progress or achievement; similar to barriers but often used in more specific contexts.

Challenge

A task or situation that requires a person to use some effort, skill, or ingenuity to achieve a goal or overcome an obstacle.

Rationalizing

The cognitive process of making something appear reasonable or acceptable, often as a way of justifying one’s behavior or decisions.

Inconsistency

The quality of being inconsistent; not staying the same throughout.