7. Energy crises
Increase in population
Decrease in supply
Marketing and new technology
Customs and traditions
Backward mean of production
7
8. A phenomenon in which the general price
levels rise (inflation) due to increases in
the cost of wages and raw materials.
8
10. Monopoly
Natural disasters
› Shortage of resources
Component costs
› increase in the prices of raw material (natural
resources).
Rising labor costs
› creating labor shortages
Higher indirect taxes imposed by the
government
› a rise in the duty on alcohol, cigarettes and
petrol/diesel.
10
11. A fall in the exchange rate
› this can cause cost push inflation because it
normally leads to an increase in the prices of
imported products.
Loose Govt. control
Surplus Employment.
Imports
11