WorksheetsInflation and Bubbles and Tulips: Crash Course Economics #7
Total questions: 10
Worksheet time: 3hrs 30mins
Inflation is an ________ in a currency supply relative to the number of people using it, resulting in rising prices of goods and services over time.
increase
decrease
stagnation
overestimation
What is a bubble?
A collection of soap molecules
The price of just one good soars as a result of collective delusions and irrational exuberance.
A fun way to pass an afternoon.
Molecular cohesion among water molecules facilitated by the bonding of polar molecules in the soap.
A (a) basket is a list of goods that represents what an average consumer buys in a year.
What is the most commonly used measure of inflation?
inflation rate
currency index
IBM
CPI
Real means that a price from the past (a) been adjusted for inflation.
Nominal means that a price from the past (a) been adjusted for inflation.
Being rich is about ....
how much money you have.
how much purchasing power you have.
how many bank accounts you have that contain over $100, 000 (FDIC insured).
your relative position with respect to eh CPI.
Demand _________ __________ is too much money chasing too few goods.
(a)
Inflation is the result of having ...
more goods and services than money.
too many goods and services with respect to the CPI.
more money than goods and services.
incompetent economic advisors.
What makes an economic bubble burst?
The market runs out of buyers
The market runs out of sellers
Supply and demand finally equalize
Inflation increases at a greater rate than demand
