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Practice Questions
Test your understanding with targeted questions related to the topic.
Question 1
Easy
What is cost-push inflation?
💡 Hint: Think about what happens when costs of goods increase.
Question 2
Easy
Name one factor that can cause an increase in cost of production.
💡 Hint: What do workers get paid?
Practice 4 more questions and get performance evaluation
Interactive Quizzes
Engage in quick quizzes to reinforce what you've learned and check your comprehension.
Question 1
What type of inflation is caused by increases in production costs?
- Demand-Pull Inflation
- Cost-Push Inflation
- Stagflation
💡 Hint: What happens when production becomes more expensive?
Question 2
True or False: An increase in wages necessarily leads to cost-push inflation.
- True
- False
💡 Hint: Consider the effects of higher labor costs on businesses.
Solve 2 more questions and get performance evaluation
Challenge Problems
Push your limits with challenges.
Question 1
Suppose the price of critical raw materials increases by 20%. Analyze how this change would affect the price of finished goods in a manufacturing industry.
💡 Hint: Consider the relationship of raw materials to the final product cost.
Question 2
Suppose the government implements a wage increase policy. Discuss the potential consequences these policies might have on inflation and general prices.
💡 Hint: Think of the ripple effects of higher salaries.
Challenge and get performance evaluation