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Which of the following will cause an increase i... - JAMB Economics 2023 Question

 

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

correct option: b

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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