12
QuizMultiple Choice

Business Structures — Unit test

Question 12 • RAIL NCAA OC Economics 2027

Cost-push inflation occurs when

Answer
c
consumers begin purchasing more goods.
p
producers need more money to make and distribute goods.
t
the government prints more money and pushes prices up.
c
consumers have more money to spend on goods and services.

Explanation

Cost-push inflation happens when the costs of producing or distributing goods rise, and businesses raise prices to cover those costs. So the correct choice is producers needing more money to make and distribute goods. Increased consumer spending or a larger money supply can cause demand-pull inflation instead.

AI-written and checked against the verified answer.

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