The Existence of Menu Costs Are Often Used to Explain

question 13

Multiple Choice

The existence of menu costs are often used to explain why

• A)fiscal and monetary policies should be relatively effective.
• B)the price of services, like those provided by restaurants and barbers, rise at a faster rate than the price of goods, like automobiles and clothing.
• C)food prices tend to rise disproportionately rapidly in the consumer price index.
• D)price and wage adjustments will be relatively rapid.
• E) people prefer to look backward, instead of forward, when anticipating the future.

---

Definitions:

Big Five

A psychological theory identifying five major dimensions of human personality: openness, conscientiousness, extraversion, agreeableness, and neuroticism.

Personality Dimensions

Categories or aspects of an individual’s personality, such as openness, conscientiousness, extraversion, agreeableness, and neuroticism, that help in understanding their behavior.

Locus of Control

A psychological concept referring to the degree to which individuals believe that they have control over the outcome of events in their lives.

External Influences

Factors outside of an individual's immediate control that impact their behavior, decisions, or performance.