The Inflation of the Sixteenth and Early Seventeenth Centuries

question 42

Multiple Choice

The inflation of the sixteenth and early seventeenth centuries

• A) severely hampered commercial expansion.
• B) caused a shift in industry to urban locales.
• C) caused a decline in the standard of living for wage earners and those on fixed incomes.
• D) was caused largely by a declining labor force.
• E) was the result of too little money in circulation.

---

Definitions:

Consumer Surplus

The discrepancy between the amount consumers are prepared to spend on a product or service and the actual price they pay.

Consumer Surplus

The gulf between the aggregate amount consumers are willing to allocate for a good or service and what they actually end up paying.

Producer Surplus

The variance between the minimum amount producers are prepared to take for a product and the actual payment they get.

Opportunity Cost

The cost of forgoing the next best alternative when making a decision or choosing between multiple options.