Which statements describe how even low levels of inflation may negatively affect real output? Multiple select question. Businesses incur the costs of changing prices to reflect inflation. People hold more cash and have to spend less time going to the bank or online to transfer money. Households and businesses spend time and effort distinguishing between real and nominal wages and interest rates. Businesses see even mild inflation as a threat and slow or stop production.

Consumer surplus is: the difference between the price of a product and what consumers were willing to pay for the product. the difference between the discounted price of a product and its retail price. the difference between the price paid by consumers and the price required of producers. the difference between the price of a product and consumers' valuation of the last unit of the product purchased.

Which of the following mechanisms would be most likely to motivate managers to act in the best interests of shareholders? a) decrease the use of restrictive covenants in bond agreements, b) take actions that reduce the possibility of a hostile takeover, c) elect a board of directors that allows managers greater freedom of action, d) increase the proportion of executive compensation that comes from stock options and reduce the proportion that is paid as cash salaries, e) eliminate a requirement that members of the board directors have a substantial investment in the firm's stocks

Which of the following is a problem for the production of public goods?