Menu Costs of Inflation Are The

question 102

Multiple Choice

Menu costs of inflation are the:

• A) costs associated with money not being a reliable unit of measurement.
• B) costs of transactions associated with avoiding the inflation tax.
• C) costs associated with businesses changing prices.
• D) revenue the government gets from printing money.

---

Definitions:

Utilities Possibilities Frontier

A graphical representation that shows the maximum amount of two different utilities that can be achieved with a given set of resources.

Unattainable

Refers to goals, objectives, or levels of production that cannot be achieved with the current availability of resources or technology.

Utilities Possibilities Frontier

A graphical representation showing the maximum levels of utility that two individuals or more can achieve given a fixed set of resources.

Efficient

The state of optimizing the use of limited resources to achieve the desired outcome without waste.