Which of the Following Is an Important Cause of Inflation

question 92

Multiple Choice

Which of the following is an important cause of inflation in an economy?

• A)Increases in productivity in the economy
• B)The influence of positive externalities on the economy
• C)Lack of property rights in the economy
• D)Growth in the quantity of money in the economy

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Definitions:

Predetermined Overhead Rate

A rate used to allocate manufacturing overhead to individual products or job orders, based on a predetermined formula.

Machine-Hours

A measure of the time a machine is run during production, used to allocate manufacturing overhead costs based on machine usage.

Markup

A pricing strategy where a fixed amount or percentage is added to the cost of a product to determine its selling price.

Predetermined Overhead Rate

A rate used to allocate manufacturing overhead costs to produced goods, based on estimated costs and activity levels.