Quiz about Inflation

Question 1

In general, what happens to money that you have saved in a jar in your closet for 20 years?

Accepted Answer

I will be able to buy less with it than I could when I saved it.

Answer

I will be able to buy more with it than I could when I saved it.

Answer

It's the same amount of money so I will be able to buy the same with it than when I saved it.

Question 2

What is the biggest problem with this statement?

"I will be getting a pension of $1500 a month. This is enough to cover my expenses now, so I will be Ok for the rest of my life"

Accepted Answer

It does not account for inflation.

Answer

This person might lose their pension.

Answer

This person should be saving their money

Question 3

Why is the minimum wage now higher than the minimum wage when your dad was your age?

Accepted Answer

Because price inflation has caused wage inflation

Answer

Because more people go to college

Answer

Because the population has increased

Answer

Employers are nicer now than they used to be

Question 4

High inflation is good for the economy.

Accepted Answer

False

Answer

True

Question 5

Deflation (when prices go down) is good for the economy.

Accepted Answer

False

Answer

True

Question 6

When someone says "in today's dollars", they are...

Accepted Answer

Adjusting for inflation

Answer

Talking about money that they earned today.

Answer

Complaining about taxes

Question 7

A small level of inflation is good for the economy.

Accepted Answer

True

Answer

False

Question 8

what is the challenge of inflation when it comes to long term saving?

Accepted Answer

You need to find a way to make your money grow so that hopefully it grows faster than inflation.

Answer

Since prices keep going up, you are out of luck no matter what you do.

Answer

Saving your money in a jar is the safest thing because you can't lose it.

Question 9

If you currently pay $130 per week on food for yourself, how much would you expect to pay 35 years from now if inflation stays at 2%?

Accepted Answer

$260

Answer

$130

Answer

$630.50

Answer

$4550

Question 10

If you currently pay $130 per week on food for yourself, how much would you expect to pay 35 years from now if inflation stays at 5%?

Accepted Answer

$717.60

Answer

$130

Answer

$650

Answer

$4550

Question 11

If minimum wage is $10 an hour now, and it keeps up with inflation at a rate of 8%, how much would it be 20 years from now?

Accepted Answer

$46.60

Answer

$160

Answer

$469

Answer

$10

Question 12

If minimum wage is $10 an hour now, and it keeps up with inflation at a rate of 8%, how much would it be 50 years from now?

Accepted Answer

$469

Answer

$160

Answer

$46.60

Answer

$10

Question 13

Over the short term, low level inflation is barely noticeable.

Accepted Answer

True

Answer

False

Question 14

Over the long term, low level inflation is barely noticeable.

Accepted Answer

False

Answer

True

Question 15

Old people are more likely than young people to talk about prices these days because....

Accepted Answer

They have experienced the long term effects of inflation

Answer

They don't remember new stuff

Answer

They can't figure out how to use their phones

Answer

The forget how much they used to make

Question 16

When you compare the price of shoes between now and 20 years from now, you are ...

Accepted Answer

Looking at the price of a pair of shoes now and the price you would expect to pay for the same level of shoes in 20 years.

Answer

Telling what would happen if you bought shoes now and saved them for 20 years and then sold them

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