Inflation imposes many costs on the economy: shoe-leather costs, money illusion, menu costs, wealth redistribution, price confusion, future price level uncertainty, and tax distortions. For each of the following statements, determine the associated cost. 1. The CEO of GM worries that his revenue received in the future won't cover the expenses he incurs today.
2. A jeweler observes the price of gold riseof donuts and wonders if there is a shortage of gold.
3. Jim is reluctant to sell his stocks at the end of the year.
4. Kallie is takin more trips to ATM now tha the past.
5. Carson is angry because the price od donuts increased from $1 to $2.
6. John thinks his new salary in NYC will increase his standard of living.
7. Your grandmother's savings account pays 2% interest, but inflation is 5%.
A. Shoe-leather costs
B. Money illusion
C. Menu costs
D. Wealth redistribut'n
E. Price confusion

12. nelson corporation, which has only one product, has provided the following data concerning its most recent month of operations: selling price $ 115 units in beginning inventory 380 units produced 5,900 units sold 6,070 units in ending inventory 210 variable costs per unit: direct materials $ 46 direct labor $ 27 variable manufacturing overhead $ 3 variable selling and administrative $ 12 fixed costs: fixed manufacturing overhead $ 112,100 fixed selling and administrative $ 36,420 the company produces the same number of units every month, although the sales in units vary from month to month. the company's variable costs per unit and total fixed costs have been constant from month to month. a. prepare a contribution format income statement for the month using variable costing. unit product cost under variable costing direct materials direct labor variable manufacturing overhead variable costing unit product cost (formula)

Suppose that a monopolistically competitive restaurant is currently serving 260 meals per day (the output where mr

Which of the following would be an accurate statement about achieving a balanced budget