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Questions and Answers
Which of the following is a reason why prices can increase due to inflation?
Which of the following is a reason why prices can increase due to inflation?
- More people want to buy the same things (correct)
- The cost of production decreases
- The stores want to make more profit
- The government wants to control the economy
What is one effect of inflation?
What is one effect of inflation?
- Decreased demand for goods and services
- Increased cost of living (correct)
- Increased purchasing power of consumers
- Decreased profits for businesses
Why do businesses often raise prices when their production costs increase?
Why do businesses often raise prices when their production costs increase?
- To cover their increased costs (correct)
- To decrease demand for their products
- To control inflation
- To make more profit
What is inflation?
What is inflation?
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What can cause inflation?
What can cause inflation?
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