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Total questions: 82
Worksheet time: 54mins
Most countries try to maintain an inflation rate of ______ per year.
One percent or less
Two to three percent
Four to five percent
Six to seven percent
Which of the following types of inflation interferes with a company’s ability to plan for the future?
Expected inflation
Unexpected inflation
Creeping inflation
Galloping inflation
Which of the following terms is also known as total output?
Price index
Price level
Aggregate demand
Aggregate supply
The _______ considers the weighted averages of a group of consumer goods and services.
Consumer price index
Aggregate supply
Producer price index
Aggregate demand
_________ is a decrease in the rate of inflation.
Hyperinflation
Disinflation
Deflation
Stagflation
__________ refers to a decrease in price level.
Hyperinflation
Disinflaation
Deflation
Stagflation
__________ occurs in the economy when unemployment and inflation are both high.
Hyperinflation
Disinflation
Deflation
Stagflation
Which of the following explains the relations between the average price of aggregate supply and the quantity demanded?
Aggregate demand
Price level
Producer price index
Consumer price index
Which of the following is NOT one of the components of Gross Domestic Product (GDP)?
Consumption
Producer Price Index
Government spending
Investment
Which of the followings is NOT one of the forms of inflation?
Hyperinflation
Disinflation
Stagflation
Pre-inflation
Which of the following types of inflation occurs when sales drop and retailers cannot place higher prices on customers?
Deflation
Disinflation
Hyperinflation
Pre-inflation
Which of the following causes of inflation is often described as “too much money chasing too few goods”?
Demand-pull inflation
Cost-push inflation
Demand-push inflation
Cost-pull inflation
Which of the following types of inflation involves the government using financial stimuli to increase the country’s output?
Deflation
Disinflation
Reflation
Hyperinflation
Which of the following interest rates is expressed in terms of current dollars as the percentage of the amount loaned?
Simple interest rate
Nominal interest rate
Real interest rate
Compound interest rate
Which of the following is NOT one of the constants the aggregate supply curve assumes?
State of technology
Resource prices
Rules providing production incentives
Rate of production
What is inflation?
Increase general price level of goods and services
Increase price level from one private organisation
Decrease general price level of goods
Increase general price level of services
what is the result from "Stagflation"?
Raising employment rate
Economic growth is like a "snail"
General Price level decreases
None
Which type of inflation is correct?
Cost - pull inflation
Demand - push inflation
Cost - push inflation
All is correct
Causes of Inflation are...
Demand - pull
Supply - shock
Wage push
All is correct
Do you remember the accurate formula of Inflation Rate (%)?
CPI Current Year - CPI Previous Year x 100%
CPI Current Year
CPI Previous Year - CPI Current Year x 100%
CPI Current Year
CPI Previous Year - CPI Current Year x 100%
CPI Previous Year
CPI Current Year - CPI Previous Year x 100%
CPI Previous Year
To manage inflation, government uses macroeconomic policy including:
Monetary Policy
Fiscal Policy
Two of them are correct
All of them are incorrect
There are two tools of Fiscal Policy, which are
Cash rate and Reserve Requirements
Open Market Operations and Tax
Government spending and Reserve Requirements
Tax and Government Spending
Which statement is true about the Supply shock or Cost - push Inflation?
One of the illustrations is climate change
Caused from increase the cost of production
Caused from rising energy and commodity prices
All is true
What are solutions mentioned to this presentation?
All is correct
Investing solid pipeline in renewable energy
Two key ingredients: Political leader ship and international cooperation
Increase the demand for cleaner coal, natural gas and battery inputs
Do you obviously understand everything about our presentation?
Yes
Neutral
No
Absolutely yes
In a country that has a low rate of inflation is that a good economy or a bad economy?
Good economy
Bad economy
What is one of the MAIN types of inflation?
Core inflation
Galloping inflation
Wage inflation
Asset inflation
An increase in the general price level of all goods and services in the economy- everything we buy and consume is the definition of?
purchase price inflation
Buyer price inflation
Customer price inflation
Consumer price inflation
The _______ is the average price of all goods and services sold in the economy calculated over a given period of time.
General Price Level
Consumer Price level
Price level
Average price level
What is CPI?
Consumer price index
Costumer pay index
Consumer price Income
Costumer pay income
What is CPI?
Consumer price index
Costumer pay index
Consumer price Income
Costumer pay income
In an economy of fiat money, which is an economy where the currency;
is controlled by the Federal Reserve
is worth less
is worth more
is controlled by a central bank
Who dictates the money supply?
The Federal Bank
The Federal Reserve
The Federal Government
The Legislative Branch
What is the Federal Reserve's primary goal?
To keep inflation at a low and steady rate.
To have full employment.
Economic growth.
Economic Freedom.
If the rate of inflation rises above their target level what does the Federal Reserve do?
Increasing bond prices
They put more money into circulation
Decreases interest rates
They take excess money out of circulation
If the general price level increases by the way of an excess in the money supply what happens?
Consumer purchasing power decreases
Consumer purchasing power increases
Customer power increases
Purchasing power increases
Inflation is...
A general decease in prices and rise in the purchasing value of money.
A decrease in the cost of living.
A general increase in prices and fall in the purchasing value of money.
A decease price of goods and services
What is the most common cause of inflation?
Pull-demand inflation
Demand-pull inflation
Cost-push inflation
Push-cost inflation
What is the monetary policy?
It is a policy used by the government to help with inflation, consumption, growth and liquidity.
It is a policy made by the Federal Reserve to help the economy.
Demand-Pull inflation is...
When price levels rise because of an imbalance in the aggregate supply and demand.
When price levels decrease because of an imbalance in the aggregate supply an demand.
What is Cost-push inflation?
The decrease prices of the factors of the production leads to decreased supply of these goods.
The increase prices of the factors of the production leads to a decreased supply of these goods.
What is commonly described as "too much money chasing too few goods."
Demand-pull inflation
Cost-push inflation
Can you measure inflation multiple ways?
True
False
2 sector model showing how businesses & households interact
Circular Flow Diagram
Demand Curve
Supply Curve
Price Controls
A finished product used by an individual for personal use.
Substitute Good
Complementary Good
Consumer Good
Stock
Part of the economy where labor & resources are sold
Command Market
Factor Market
Resource Market
Product Market
A product that can be used to satisfy a want or need.
Scarcity
Dividends
Goods
Liability
Section of the economy made up of individuals or families
Firms
Households
Businesses
Factor
Where buyers and sellers learn information from one another and voluntarily exchange goods, services, & money
Market
Partnership
Specialization
Command Economy
Describes the state of a market with respect to competition
Medium of Exchange
Services
Market Structure
Store of Value
Function of money in which any item is widely accepted in the exchange of other goods or services
Market Structure
Minimum Wage
Store of Value
Medium of Exchange
lowest amount which can legally be paid to an employee
Price Ceiling
Minimum Wage
Liability
Opportunity Cost
Anything that is legally accepted payment for goods and services.
Money
Dividends
Markets
Economy
The monetary value assigned to a product or service.
Scarcity
Price
Corporation
Supply
Where goods & services are sold in the circular flow model
Businesses
Households
Factor Market
Product Market
Where labor & other factors of production are sold in the circular flow model
Households
Factor Market
Product Market
Resource Market
Factors of production used in the making of goods & services
Resources
Services
Stocks
Complimentaries
Function of money in which any commodity can be saved for later use
Opportunity Cost
Sole Proprietorship
Store of Value
Medium of Exchange
The act of buyers and sellers freely & willingly engaging in market transactions
Opportunity Cost
Scarcity
Specialization
Voluntary Exchange
The value lost when one alternative is chosen over another
Opportunity Cost
Voluntary Exchange
Specialization
Scarcity
When resources are limited and the need for goods & services are unlimited
Specialization
Voluntary Exchange
Scarcity
Opportunity Cost
when each worker performs a specific task in production
Scarcity
Specialization
Voluntary Exchange
Opportunity Cost
An economy in which the government is not involved in businesses and the factors of production are privately owned
Factor Market
Command Economy
Market Economy
Resource Market
