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JAMB Economics 1984 Question 33

Question 33

Money and Inflation

Cost push inflation takes place due to

  1. A.the rapid increase in the demand for goods
  2. B.an increase in productivity of the factors of production
  3. C.a rise in the cost of production
  4. D.a rise in the standard of living
  5. E.the low wage rate of the workers.
Show the answer and explanation

Answer: C (a rise in the cost of production)

Explanation

Cost-push inflation happens when rising costs (wages, raw materials) push producers to raise prices.