UPSC Exam > UPSC Questions > Which of the following is not a Cost-Push fac...
Start Learning for Free
Which of the following is not a Cost-Push factor of Inflation ?
- a)Increased Money supply
- b)Increased rates of GST
- c)Rising Wages
- d)Disruption in supply due to a natural disaster
- e)none of these
Correct answer is option 'E'. Can you explain this answer?
Most Upvoted Answer
Which of the following is not a Cost-Push factor of Inflation ?a)Incre...
Cost-Push Inflation:
Cost-push inflation occurs when prices rise due to an increase in the cost of production. This type of inflation can occur due to various factors like a rise in wages, an increase in taxes, or a natural disaster that disrupts the supply chain.
Factors of Cost-Push Inflation:
1. Rising Wages:
When wages increase, production costs increase, and businesses pass on these increased costs to consumers in the form of higher prices.
2. Increased rates of GST:
An increase in the rate of goods and services tax (GST) increases the cost of production, which leads to an increase in prices.
3. Disruption in supply due to a natural disaster:
Natural disasters can disrupt the supply chain, leading to an increase in production costs and ultimately higher prices.
Not a Cost-Push Factor of Inflation:
1. Increased Money supply:
Increased money supply leads to an increase in demand for goods and services, leading to higher prices. This type of inflation is known as demand-pull inflation and is not a cost-push factor.
Conclusion:
Increased money supply leads to demand-pull inflation, while rising wages, increased rates of GST, and disruptions in supply due to natural disasters are factors that contribute to cost-push inflation.
Cost-push inflation occurs when prices rise due to an increase in the cost of production. This type of inflation can occur due to various factors like a rise in wages, an increase in taxes, or a natural disaster that disrupts the supply chain.
Factors of Cost-Push Inflation:
1. Rising Wages:
When wages increase, production costs increase, and businesses pass on these increased costs to consumers in the form of higher prices.
2. Increased rates of GST:
An increase in the rate of goods and services tax (GST) increases the cost of production, which leads to an increase in prices.
3. Disruption in supply due to a natural disaster:
Natural disasters can disrupt the supply chain, leading to an increase in production costs and ultimately higher prices.
Not a Cost-Push Factor of Inflation:
1. Increased Money supply:
Increased money supply leads to an increase in demand for goods and services, leading to higher prices. This type of inflation is known as demand-pull inflation and is not a cost-push factor.
Conclusion:
Increased money supply leads to demand-pull inflation, while rising wages, increased rates of GST, and disruptions in supply due to natural disasters are factors that contribute to cost-push inflation.
Free Test
FREE
| Start Free Test |
Community Answer
Which of the following is not a Cost-Push factor of Inflation ?a)Incre...
Cost-Push Inflation:
Cost-push inflation is caused by an increase in the cost of production or decrease in the supply of goods or services. The increase in production costs leads to a decrease in the supply of goods and services, which leads to an increase in prices.
Cost-Push Factors of Inflation:
The following are the cost-push factors of inflation:
1. Increased Money Supply: An increase in the money supply can lead to an increase in the cost of production. If the supply of money increases, the demand for goods and services also increases, leading to an increase in the cost of production.
2. Increased Rates of GST: An increase in the rates of GST can lead to an increase in the cost of production. If the rates of GST increase, the cost of production also increases, leading to an increase in prices.
3. Rising Wages: An increase in wages can lead to an increase in the cost of production. If wages increase, the cost of production also increases, leading to an increase in prices.
4. Disruption in Supply Due to a Natural Disaster: A natural disaster can lead to a decrease in the supply of goods and services, leading to an increase in prices.
Not a Cost-Push Factor of Inflation:
The correct answer is option 'E' which says 'none of these'. This is because all the options given in the question are cost-push factors of inflation. Therefore, none of them is not a cost-push factor of inflation.
Cost-push inflation is caused by an increase in the cost of production or decrease in the supply of goods or services. The increase in production costs leads to a decrease in the supply of goods and services, which leads to an increase in prices.
Cost-Push Factors of Inflation:
The following are the cost-push factors of inflation:
1. Increased Money Supply: An increase in the money supply can lead to an increase in the cost of production. If the supply of money increases, the demand for goods and services also increases, leading to an increase in the cost of production.
2. Increased Rates of GST: An increase in the rates of GST can lead to an increase in the cost of production. If the rates of GST increase, the cost of production also increases, leading to an increase in prices.
3. Rising Wages: An increase in wages can lead to an increase in the cost of production. If wages increase, the cost of production also increases, leading to an increase in prices.
4. Disruption in Supply Due to a Natural Disaster: A natural disaster can lead to a decrease in the supply of goods and services, leading to an increase in prices.
Not a Cost-Push Factor of Inflation:
The correct answer is option 'E' which says 'none of these'. This is because all the options given in the question are cost-push factors of inflation. Therefore, none of them is not a cost-push factor of inflation.
|
Explore Courses for UPSC exam
|
|
Top Courses for UPSCView all
Question Description
Which of the following is not a Cost-Push factor of Inflation ?a)Increased Money supplyb)Increased rates of GSTc)Rising Wagesd)Disruption in supply due to a natural disastere)none of theseCorrect answer is option 'E'. Can you explain this answer? for UPSC 2025 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Which of the following is not a Cost-Push factor of Inflation ?a)Increased Money supplyb)Increased rates of GSTc)Rising Wagesd)Disruption in supply due to a natural disastere)none of theseCorrect answer is option 'E'. Can you explain this answer? covers all topics & solutions for UPSC 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Which of the following is not a Cost-Push factor of Inflation ?a)Increased Money supplyb)Increased rates of GSTc)Rising Wagesd)Disruption in supply due to a natural disastere)none of theseCorrect answer is option 'E'. Can you explain this answer?.
Which of the following is not a Cost-Push factor of Inflation ?a)Increased Money supplyb)Increased rates of GSTc)Rising Wagesd)Disruption in supply due to a natural disastere)none of theseCorrect answer is option 'E'. Can you explain this answer? for UPSC 2025 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Which of the following is not a Cost-Push factor of Inflation ?a)Increased Money supplyb)Increased rates of GSTc)Rising Wagesd)Disruption in supply due to a natural disastere)none of theseCorrect answer is option 'E'. Can you explain this answer? covers all topics & solutions for UPSC 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Which of the following is not a Cost-Push factor of Inflation ?a)Increased Money supplyb)Increased rates of GSTc)Rising Wagesd)Disruption in supply due to a natural disastere)none of theseCorrect answer is option 'E'. Can you explain this answer?.
Solutions for Which of the following is not a Cost-Push factor of Inflation ?a)Increased Money supplyb)Increased rates of GSTc)Rising Wagesd)Disruption in supply due to a natural disastere)none of theseCorrect answer is option 'E'. Can you explain this answer? in English & in Hindi are available as part of our courses for UPSC.
Download more important topics, notes, lectures and mock test series for UPSC Exam by signing up for free.
Here you can find the meaning of Which of the following is not a Cost-Push factor of Inflation ?a)Increased Money supplyb)Increased rates of GSTc)Rising Wagesd)Disruption in supply due to a natural disastere)none of theseCorrect answer is option 'E'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of
Which of the following is not a Cost-Push factor of Inflation ?a)Increased Money supplyb)Increased rates of GSTc)Rising Wagesd)Disruption in supply due to a natural disastere)none of theseCorrect answer is option 'E'. Can you explain this answer?, a detailed solution for Which of the following is not a Cost-Push factor of Inflation ?a)Increased Money supplyb)Increased rates of GSTc)Rising Wagesd)Disruption in supply due to a natural disastere)none of theseCorrect answer is option 'E'. Can you explain this answer? has been provided alongside types of Which of the following is not a Cost-Push factor of Inflation ?a)Increased Money supplyb)Increased rates of GSTc)Rising Wagesd)Disruption in supply due to a natural disastere)none of theseCorrect answer is option 'E'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice Which of the following is not a Cost-Push factor of Inflation ?a)Increased Money supplyb)Increased rates of GSTc)Rising Wagesd)Disruption in supply due to a natural disastere)none of theseCorrect answer is option 'E'. Can you explain this answer? tests, examples and also practice UPSC tests.
|
|
Explore Courses for UPSC exam
|
|
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
|
Signup on EduRev and stay on top of your study goals
10M+ students crushing their study goals daily