Inflation from Production Point of View

Q. Controlled inflation helps in contracting production and promoting economic growth in the country.

1. False
2. True

Q. Peter Pan Ltd. manufactures bread for ₹10/loaf, and they have a nice sales market. They are now planning to expand and open another plant in Jaipur, for which they require additional capital. So, their team hiked the prices to ₹12/loaf. The consumers noticed this change, but they were okay with the ₹2 hike.

Who benefitted from this step?

1. The consumers will get better quality products now.
2. Peter Pan Ltd. will benefit as they will have more money.
3. Foreign economies will benefit.
4. Peter Pan's competitors will benefit.

Q. From which perspective is a little inflation considered good?

1. Consumer point of view
2. Savings point of view
3. Investing point of view
4. Production point of view

Q. Which type of inflation helps in expanding production in the country?

1. High
2. Low
3. Sudden
4. Controlled