If the CPI is 93 in 2017 and 97 in 2018, calculate the rate of inflation from 2017 to 2018.

• 4.3%

• 4.12%

• 4%

• 5.1%

• None of the answers

Fill in the blank. Inflation is a persistent or sustained __________ in the average level of prices over a period over of time.

• Increase

• Decrease

• Stagnation

• Stagflation

• None of the answers

Fill in the blank. Inflation is a persistent or sustained increase in the __________ level of prices over a period over of time.

• average

• median

• variance

• staggered

• None of the answers

True or False. The UK government has a target for inflation of 2% (CPI).

• True

• False

Which price index is often used by businesses for wage settlements each year?

• Consumer Price Index

• Customer Price Index

• Retail Price Index

• Revenue Price Index

• None of the answers

Which price index includes university fees, stockbroking prices, and new car prices?

• Consumer Price Index

• Customer Price Index

• Retail Price Index

• Revenue Price Index

• None of the answers

Which price index includes the costs of housing?

• Consumer Price Index

• Customer Price Index

• Retail Price Index

• Revenue Price Index

• None of the answers

Which price index meets international standards?

• Consumer Price Index

• Customer Price Index

• Retail Price Index

• Revenue Price Index

• None of the answers

Which cause of inflation occurs when prices rise in the economy due to an increase in the costs of the factors of production?

• Cost-push inflation

• Demand-pull inflation

• Price-push inflation

• Supply-pull inflation

• None of the answers

Which cause of inflation occurs when excessive growth in demand in the economy results in shortages and firms raise prices?

• Cost-push inflation

• Demand-pull inflation

• Price-push inflation

• Supply-pull inflation

• None of the answers