Which of the Following Statements About U

question 5

Multiple Choice

Which of the following statements about U.S.inflation is not correct?

• A)Low inflation was viewed as a triumph of President Carter's economic policy.
• B)There were long periods in the nineteenth century during which prices fell.
• C)The U.S.public has viewed inflation rates of even 7 percent as a major economic problem.
• D)The U.S.inflation rate has varied over time,but international data show even more variation.

---

Definitions:

Fixed Production Costs

Expenses that do not fluctuate with the level of production output, such as depreciation on factory buildings and salaries of certain managers.

Depreciation

An accounting method of allocating the cost of a tangible asset over its useful life.

Period Cost

Costs that are expensed in the period they are incurred and are not directly tied to production activity.

Indirect Costs

Costs that cannot be directly linked to the production or sale of a specific product or service, such as administration, rent, and utilities.