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Which of the following will cause an increase in cost of production?

Economics
JAMB 2023

Which of the following will cause an increase in cost of production?

  • A. Hyper-inflation
  • B. Cost push inflation
  • C. Structural inflation
  • D. Demand pull inflation
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NECO June/July 2024 - Get offline past questions & answers - Download objective & theory, all in one app 48789
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Correct Answer: Option B
Explanation

Cost push inflation occurs when overall prices increase(inflation) due to increases in the cost of wages and raw materials. It can also occur when higher costs of production decrease the aggregate supply in the economy.


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Post-UTME Past Questions - Original materials are available here - Download PDF for your school of choice + 1 year SMS alerts
NECO June/July 2024 - Get offline past questions & answers - Download objective & theory, all in one app 48789
Join your school's WhatsApp group
Join your school's WhatsApp group
NECO June/July 2024 - Get offline past questions & answers - Download objective & theory, all in one app 48789
Post-UTME Past Questions - Original materials are available here - Download PDF for your school of choice + 1 year SMS alerts