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Year 10 Inflation

Total questions: 10

Worksheet time: 6mins

Name
Class
Date
1.

Inflation can be defined as (pick the best answer)

a)

persistent and appreciable rise in the general level of prices over time

b)

increase in prices

c)

persistent and depreciating decline in the general level of prices over time

d)

persistent and appreciable rise in the some prices over time

2.

The target rate for Inflation in Australia is:

(a)  

3.

How have you enjoyed Week 2 of Economics?

a)

Very very much

b)

Very much

c)

Somewhat

d)

Not much at all

4.

Real prices are adjusted for_____________. Nominal prices are not.

a)

economic growth

b)

inflation

c)

externalities

d)

changing prices

5.

What can cause inflation? (choose the best answer)

a)

Prices just rise over time

b)

Demand inflation - People's demand increasing

c)

People demanding more, costs of production rising and governments printing money.

d)

People demanding less, costs of production rising and governments not printing money.

6.

What statement fits the cause of demand inflation:

a)

Too much money chasing too few goods

b)

Too little money chasing too few goods

c)

Some money chasing some goods

d)

Too much money chasing too many goods

7.

Who are inflation winners?

a)

High income earners, borrowers and importers

b)

High income earners, bank savers and importers

c)

High income earners, borrowers and exporters

d)

Low income earners, borrowers and importers

8.

Who are the inflation losers?

a)

Low income earners, Bank savers and exporters

b)

High income earners, Bank savers and exporters

c)

Low income earners, borrowers and exporters

d)

Low income earners, Bank savers and importers

9.

An index number is a figure representing price or quantity based on a (a)   value.

10.

If the CPI in 2019 was 108.5 and in 2018 it was 105.9, what was the inflation rate for 2019? Round to 2 decimal places.

a)

2.46

b)

2.45

c)

2.39

d)

2.43