T1W3 TS Q18 – Selective High School

Economist: The cost of doing business is increasing and the prices of all goods and services will follow the same trend.

Which one of these statements, if true, best supports the economist’s claim?

Labour (hiring people) costs are at record highs in Australia. In the past year, the cost of meat, fruit and vegetables have doubled, and businesses have had to increase prices for customers. Restaurants have had to ditch lettuce and broccoli from their menus and opt for cheaper vegetables instead. To save on labour costs, Ms Smith has cut operating hours by opening later and closing on Mondays.

Are you sure you want to leave?

Which one of these statements, if true, best supports the economist’s claim?