Inflation

Which of the following statements are true?

• If prices go down, his purchasing power goes up.

• If prices go down, his purchasing power goes down.

• If prices go up, he has to consume less.

• If prices go up, he has to consume more.

When were movie tickets more affordable?

• Today

• 100 years ago

What does CPI show economists?

• CPI indicates the level of consumer spending in a market.
• CPI measures the total employment rate in an economy.
• CPI reflects the average wage growth across different sectors.
• CPI shows economists the rate of inflation or deflation in an economy.

Which of the following statements are true?

• Real – price that has been adjusted for inflation.

• Real – price that hasn’t been adjusted for inflation.

• Nominal – price that hasn’t been adjusted for inflation.

• Nominal – price that has been adjusted for inflation.  

What causes deflation?

• Deflation is caused by a decrease in money supply, reduced demand, and increased productivity.
• Deflation results from higher wages and increased borrowing.
• Deflation is caused by an increase in government spending.
• Deflation occurs due to rising consumer confidence and spending.

Which two things reduced oil exports from Venezuela?

• Economic mis-management

• Political instability

• Factors of Production

• Profit Sharing  

When countries become more developed, which of the following happens?

• Consumers can buy more

• Consumers can buy less

• Supply increases

• Supply decreases

What is speculation?

• Speculation is a method of gathering concrete evidence.
• Speculation refers to the act of making decisions based on facts.
• Speculation is the process of analyzing data to reach conclusions.
• Speculation is trading a financial instrument involving high risk, in expectation of significant returns.

What does NINJA stand for?

• No interest

• No jobs

• No assets

• No productivity

How does inflation affect us?

• Inflation has no impact on consumer behavior.
• Inflation increases job opportunities and wages.
• Inflation lowers interest rates and boosts savings.
• Inflation decreases purchasing power, increases cost of living, and affects savings and investments.