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- Subject
- Introduction To Economicseconomics-mcqs › introduction-to-economics
- Published
- 26 May 2019
- Last updated
- 28 May 2026
Explanation
High and persistent inflation often results when labor unions push wages up too aggressively, creating wage-price spirals. While factors like rising oil prices, excessive money supply growth, and increased production costs can influence inflation, the primary cause here is unions increasing wages excessively.
More Introduction To Economics MCQs
Practice related questions from the same subject.
- 1.Which of the following factors directly influences the supply curve?
- 2.Under what condition is a market considered to be in equilibrium?
- 3.What type of relationship is depicted when a graph shows that as the values on the horizontal axis increase, the values on the vertical axis decrease?
- 4.Which two elements are essential to construct a straight-line graph?
- 5.How can a nominal value be converted into a real value?
- 6.What do time series data represent?
- 7.What does macroeconomics primarily focus on?
- 8.In a mixed economy, who is responsible for addressing economic issues?
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