Which of the Following Statements Best Defines Hyperinflation

question 23

Multiple Choice

Which of the following statements best defines hyperinflation?

• A) The annual rate of inflation in an economy is negative.
• B) The annual rate of inflation in an economy is zero.
• C) Inflation in an economy results in prices doubling within 3 years.
• D) Inflation in an economy results in prices doubling within 1 year.

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Definitions:

Benefit Surpluses

The extra utility or satisfaction gained by consumers when the price they are willing to pay for a good or service exceeds the market price.

Willingness To Pay

The maximum amount an individual is prepared to offer for a good or service, reflecting the value they place on it.

Supply Curve

A graphical representation that shows the relationship between the price of a good or service and the quantity of that good or service that a supplier is willing and able to supply to the market.

Consumer Surplus

The difference between what consumers are willing to pay for a good or service and what they actually pay, representing the benefit to consumers.