WorksheetsInflation- Consumer Price Index
Total questions: 10
Worksheet time: 5mins
The year in which the index begins is known as:
face year
trace year
base year
index value
Prices in the following are expressed as changes on the base of:
50
75
1.00
100
The prices index for different commodities are always added together and divided by two.
True
False
Sometimes
All of the time
In order to measure the rate of inflation, it is necessary to measure the rate at which prices:
differ
increase
decrease
change
The index number deals with the ________changes of a number of different goods and services.
percentage
average
price
ratio
When goods are weighted, the price index for each commodity is multiplied by the:
Commodity
Index
Weight
One hundred
Inflation takes place when prices, on average:
fall
fluctuate
remain the same
rise
Inflation may also be described as a situation where the value of money is:
falling
fluctuating
increasing
remain the same
The formula for Weighted Index is:
Commodity x Price= WI
Price x Index= WI
Price x Weight = WI
Weight x Index= WI
These are all effects of inflation EXCEPT:
Borrowers gain at the expense of lender
Inflation and the money supply
It affects the distribution of income
It affects the balance of payment
