Which One of the Following Statements Is the MOST Accurate

question 1

Multiple Choice

Which one of the following statements is the MOST accurate?

• A) There is a lively academic debate over the possibility that seemingly sticky wages and prices are in reality quite fixed.
• B) There is a lively academic debate over the possibility that seemingly sticky wages and prices are in reality much more sticky than theory assumes.
• C) There is a lively academic debate over the possibility that seemingly sticky wages and prices are in reality quite flexible.
• D) There is no debate over the possibility that wages and prices are sticky in the long run.
• E) There is no debate over the possibility that wages and prices are sticky in the short run.

---

Definitions:

Inherited

Assets or properties received from ancestors or previous generations through a legal process called inheritance.

Utilitarian Justification

A moral philosophy that advocates for actions that maximize happiness and well-being for the majority of a population.

Diminishing Marginal Utility

The principle that as a person consumes more of a good, the satisfaction (utility) from consuming each additional unit decreases.

Maximin Criterion

The claim that the government should aim to maximize the well-being of the worst-off person in society.