Which of the Following Could Lead to Demand-Pull Inflation

question 49

Multiple Choice

Which of the following could lead to demand-pull inflation?

• A) an increase in oil prices
• B) an increase in the quantity of money
• C) an increase in the money wage rate
• D) a decrease in exports

Identify the components of inventory cost.

Understand inventory ownership and the point of passing ownership, including consignment and goods in transit.

Recognize the need for disclosing changes in accounting policies and their impact on financial statements.

Understand the calculation and significance of net realizable value for inventory valuation.

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Definitions:

Average-fixed-cost Curve

A graphical representation showing how the average fixed cost of production decreases as the quantity of output increases.

Implicit Costs

The opportunity costs of using resources owned by the business for its operations instead of allocating them to their best alternative use.

Interest Rate

The expense associated with taking out a loan or the earnings from investments, usually shown as a percent of the total amount invested or borrowed.

Specialization

The process of focusing effort and resources on a limited number of activities to gain efficiency or expertise.