Question on: JAMB Economics - 2023
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Which of the following will cause an increase in cost of production?
Hyper-inflation
Cost push inflation
Structural inflation
Demand pull inflation
Cost-push inflation will cause an increase in the cost of production. Cost-push inflation occurs when the costs of production, such as wages and raw materials, increase, leading firms to pass on these higher costs to consumers in the form of higher prices for goods and services. This upward pressure on production costs is a key characteristic of cost-push inflation.
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