• We need your support!

    We are currently struggling to cover the operational costs of Xtremepapers, as a result we might have to shut this website down. Please donate if we have helped you and help make a difference in other students' lives!
    Click here to Donate Now (View Announcement)

MCQ Economics paper 1 Q26

N

Nobody

Messages
32
Reaction score
0
Points
0
what is not a possible cause of cost-push inflation
A-increase in firms profit margins
B-increase in supply of money
C-increase in trade union power
D-increase in world oil prices

the answer is B, but why is it not A..profit is not part of a cost
 
Xenon

Xenon

Messages
350
Reaction score
64
Points
38
profit is the reward of entrepreneur which is also a factor of production.
money supply has its own cause of inflation as given by the quantity theory of money.
 
You must log in or register to reply here.
Top