The major reason that presidents of major corporations receive an average salary of over $1 million a year while police officers receive an average salary of about $56,000 a year can best be explained by:

Why would a policymaker risk inflation if workers can just renegotiate their wages?

A) There is a change that workers will not fully anticipated the impact of the policy. B) The policymakers want to look like they are actively involved in the economy. C) Inflation is not a high price to pay in the economy. D) The policymakers do not believe that the workers can renegotiate.

When the production of a good involves several inputs, an increase in the cost of one input will usually cause total costs to

A) rise more than in proportion. B) rise less than in proportion. C) remain unchanged. D) rise by the exact amount of the input price increase.