In Zimbabwe in the 1990s the Government Resorted to Printing

question 84

Multiple Choice

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

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

---

Definitions:

Entry

The act of beginning or entering into a particular sphere or market, often used in the context of firms entering an industry.

MC of Production

The additional cost incurred by producing one more unit of a good or service, often denoted as marginal cost.

Long-Run Industry

An economic concept where all inputs and operations are adjustable, allowing for new firms to enter or exit the market, affecting supply and price levels.

Profit-Maximization

Profit-maximization is the process by which a firm determines the price and output level that returns the greatest profit, focusing on key variables like sales and costs.