Annual Inflation Equal to 1,000% Means That Prices Are Rising

question 20

Multiple Choice

Annual inflation equal to 1,000% means that prices are rising by

• A) 100 times in a year.
• B) 10 times in a year.
• C) 500 times in a year.
• D) 1,000 times in a year.

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Definitions:

Total Cost Concept

The total cost concept is an approach in economics and accounting that considers all costs related to the production and delivery of a product or service, including fixed, variable, and indirect costs.

Rate of Return

The gain or loss on an investment over a specified period, expressed as a percentage of the investment’s cost.

Markup Percentage

The fraction applied on top of the buying price of products to include expenses for overhead and yield a profit.

Markup Percentage

The percentage by which the cost of a product is increased to determine its selling price.