In Zimbabwe in the 1990s the Government Resorted to Printing

question 97

Multiple Choice

In Zimbabwe in the 1990s the government resorted to printing money to pay the salaries of government employees because of:

• A)a means to avoid price controls.
• B)high rates of inflation.
• C)declining tax revenues.
• D)a need to stimulate the economy.

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Definitions:

Returns To Scale

The rate at which production output increases as a result of a proportional increase in all inputs (labor, capital, etc.).

Input

The resources, materials, or energy used in the production process to generate output.

Factors Of Production

The inputs used in the creation of goods or services in order to make an economic profit, including land, labor, capital, and entrepreneurship.

Input

Resources used in the production of goods and services.