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- 1. Multiple Choice
What is inflation?
Inflation is an social studies term that describes a general increase in prices 📈 and a fall in the purchasing power of money 📉.
Inflation is an economic term that describes a general increase in prices 📈 and a fall in the purchasing power of money 📉.
Inflation is an economic term that describes a general increase in prices 📈 and a increase in the purchasing power of money 📉.
- 2. Multiple Choice
A little inflation is normal and even good for a healthy economy. Inflation becomes a problem when it grows too quickly.
True
False
- 3. Multiple Choice
All governments and central banks try and control inflation with market regulation.
True
False
- 4. Fill in the Blank
The two main components of inflation are
- 5. Multiple Choice
Inflation is ...
Rise in costs of goods and services
% increase or decrease in prices over a period of time
- 6. Multiple Choice
Inflation rate is ...
Rise in costs of goods and services
% increase or decrease in prices over a period of time
- 7. Multiple Choice
What causes inflation?
inflation occurs when there's an increase in production costs OR when demand for products and services increases faster than supply
inflation occurs when there's an increase in production costs OR when demand for products and services increases slower than supply
inflation occurs when there's a slower increase in production costs OR when demand for products and services increases faster than supply
- 8. Fill in the Blank
What are the three main causes of inflation?
- 9. Multiple Choice
Money supply creates inflation only when ...
the money is printed slower than the economy grows.
the money is printed faster than the economy grows.
the money is printed at the same speed than the economy grows.
- 10. Multiple Choice
What are the three ways governments can contral inflation?
Monetary Policy, Fiscal Policy, Exchange Rates
Fiscal Policy, Supply and Demand
Monetary Policy, Supply and Demand
- 11. Multiple Choice
increasing the money supply only increases demand if ...
the extra money ends up in the hands of the rich
the extra money ends up in the hands of the government.
the extra money ends up in the hands of consumers.
- 12. Multiple Choice
Debtors are winner because
their assets tend to hold their value through inflationary periods.
their debts carry fixed rates. They pay their loans back in less valuable currency.
- 13. Multiple Choice
Savers are loser of inflation because
fixed pension or interest income from investments your income will not grow with inflation.
the inflation rate is lower than the interest rate, savings are decreasing in value.
the inflation rate is higher than the interest rate, savings are decreasing in value.
- 14. Multiple Choice
The fundamental problem of economics is ...
lack of money and choice
scarcity and choice
- 15. Multiple Choice
The fundations of economis are ...
Scarcity and
opportunity cost
Scarcity, choice and
opportunity cost
choice and
opportunity cost
- 16. Multiple Choice
Why does scarcity exists?
factors of production are limited and humans wants are unlimited
there is a lack of resources and factors of production
- 17. Multiple Choice
What is the result of scarcity?
choices and priorities have to be made
invest your money in property
save your money in the bank
- 18. Multiple Choice
What is another result of scarcity?
avoid inflation
avoid corruption
avoid wate
- 19. Multiple Choice
Economics is a study of choices becausse ...
it leads to the
best possible way to avoid inflation in order to best
satisfy unlimited human needs and wants.
it leads to the
best possible use of scarce resources in order to best
satisfy unlimited human needs and wants.
it leads to the
best possible use of scarce resources in order to best
save and invest our money.
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