Economic Indicators 2.1-2.5

Economic Indicators 2.1-2.5

12th Grade

15 Qs

quiz-placeholder

Similar activities

Inflation

Inflation

12th Grade - University

15 Qs

Unit 3: Macroeconomics Test

Unit 3: Macroeconomics Test

12th Grade

20 Qs

EPF Unit 1.1

EPF Unit 1.1

12th Grade

12 Qs

Macroeconomic Indicators

Macroeconomic Indicators

12th Grade - University

15 Qs

Inflation/Unemployment

Inflation/Unemployment

12th Grade

16 Qs

Macroeconomics part 1

Macroeconomics part 1

12th Grade

13 Qs

Chapter 24 Review Questions

Chapter 24 Review Questions

9th - 12th Grade

15 Qs

Inflation

Inflation

12th Grade

13 Qs

Economic Indicators 2.1-2.5

Economic Indicators 2.1-2.5

Assessment

Quiz

Social Studies

12th Grade

Medium

Used 3+ times

FREE Resource

15 questions

Show all answers

1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

The country of Ambrosia calculates inflation using a consumer price index (CPI). Between 2016 and 2017 the CPI increased from 220 to 240.

What was the inflation rate between 2016 and 2017?

10%

20%

9%

7%

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which of the following best explains why the consumer price index (CPI) may not accurately measure changes in the cost of living?

It doesn't include all prices, such as input costs to firms

It does not account for changes in consumers' incomes

It only includes goods purchased every day

When prices of some goods go up, consumers buy less of those and more of goods that are cheaper


When real GDP increases, the CPI doesn't change

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Media Image

The table below shows quantities purchased and the prices of the only two goods citizens of Bloominonionland buy over three years.

What is the consumer price index for 2017 using 2016 as a base year?

75

67

150

50

120

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

The price of hamster food and many other consumer goods increased in Hamsterville. As a result, the CPI increased from 80 to 100.

What was the inflation rate in Hamsterville?

80%

25%

20%

33%

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which of the following best describes the consumer price index (CPI)?

The change in prices that a consumer would have to pay for a fixed set of goods as a percentage of the same goods in a base year

The cost of labor purchased by firms in a year divided by the cost of the same amount of labor in a base year expressed as a percentage


The cost inputs purchased by firms in a year divided by the price of the same inputs in a base year expressed as a percentage

Real GDP produced in one year divided by the real value of that GDP in another year

The dollars a person needs in order to buy a fixed collection of goods in a year, compared to a base year

6.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Media Image

The table below shows the consumer price index (CPI) over several years for Bloominonionland.

Which of the following conclusions can be drawn based on this data?

Prices increased over all four years

real GDP increased every year except between 2017 and 2018

Prices increased between 2015 and 2017, but decreased between 2017 and 2018

2015 is the base year

The bundle of goods changed each year

7.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

You borrow $200 from the First Bank of Westeros to purchase Kraken repellant. The bank charges a fixed nominal interest rate of 18% per year and you will repay them in one year. You and the bank both anticipate that there will be 7% inflation. However, after the loan agreement is signed, the rate of inflation turns out to be 9%.

Who is hurt by this unanticipated inflation, and why are they hurt by it?

You are hurt because the value of what is repaid has decreased

The bank is hurt because the value of what is repaid has increased

You are hurt because the value of what is repaid has increased

The bank is hurt because the value of what is repaid has decreased

We cannot tell without more information

Create a free account and access millions of resources

Create resources
Host any resource
Get auto-graded reports
or continue with
Microsoft
Apple
Others
By signing up, you agree to our Terms of Service & Privacy Policy
Already have an account?