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WorksheetsInflation Quiz
Total questions: 10
Worksheet time: 5mins
Which of the following is not a measure of inflation?
PPI
CPI
QPI
RPI
Which of the following is not an advantage of Inflation?
It encourages consumption
It reduces the value of debt
It allows struggling firms to raise prices
It raises the price of Exports
If the CPI rises from 250 to 275 in a given year, the rate of inflations is:
10%
9.1%
25%
20%
Which of the following is not part of calculating CPI
Survey households on their day-to-day spending
Assigning weights to different goods
Transferring to index form
Measuring changes to mortgage and other housing costs
Which of the following would cause Demand Pull inflation
An increase in the price of oil
A depreciation in the exchange rate
A cut in government spending
An Increase in taxation
Which of the following is most likely to be a cause of deflation
An increase in the supply of cash printed by the central bank
An increase in Oil prices
A reduction in income tax
An improvement in technology
An increase in government spending will most likely lead to inflation when
It is spent on education
The economy is near full capacity
There is a large amount of spare capacity
It is spent on imported capital goods
On reason that Deflation is a problem is that
Consumers pay lower prices for goods
Fixed incomes rise in real terms
Borrowers struggle to repay debt
Savers see falling returns for their savings
The UK's target rate of inflation is
2%
less than 2%
2%, unless Economic Growth needs to be targetted instead
between 1 and 3%
In the CPI:
Food is weighted at 40%
Non-Food is weighted at 60%
If the price of Food rises by 5% and the price of Non-Food rises by 10%, what is that CPI rate of inflation?
8%
15%
7%
6%
