Which of the Following Is NOT a Factor That Increases

question 104

Multiple Choice

Which of the following is NOT a factor that increases short-run price stickiness?

• A) Consumers tend to prefer stable prices
• B) Stable prices make it easier for consumers to plan their spending
• C) A firm can lower its price without fear that rival firms will also lower their prices
• D) Firms try to avoid price wars

Understand the role of marginal productivity in determining income.

Awareness of the changes in income distribution over time.

Grasp the concept of income mobility and its indicators.

Understand the relationship between skill development, economic contribution, and personal income.

---

Definitions:

Real Wages

Wages that have been adjusted for inflation, representing the actual purchasing power of income.

Productivity

The efficiency with which input resources are converted into outputs, often measured as output per unit of input.

Marginal Product

The increase in output that results from employing one more unit of a particular factor of production, holding all else constant.

Radios

Electronic devices designed to receive and amplify audio broadcasts from radio stations, allowing for the wireless transmission of music, news, and other types of content.