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Inflation

Total questions: 20

Worksheet time: 11mins

Name
Class
Date
1.
What is inflation?
a)
rise in all prices
b)
rise in most prices
c)
rise in some prices
d)
rise in general prices
2.
An index that measures the prices of a market basket of goods that typical consumers purchase.
a)
Consumer Price Index
b)
Federal Reserve
c)
Bank
d)
Deflation
3.
Demand-Pull inflation can be describes as too many _________ chasing too few __________
a)
jobs, workers
b)
consumers, producers
c)
dollars, goods
4.
Who is most likely to be hurt by inflation?
a)
someone who borrowed money
b)
a retiree on a fixed income
c)
a business owner
d)
the U.S. government
5.
What 2 types of inflation are there?
a)
demand pull and cost push
b)
demand pull and supply glut
c)
supply glut and demand side
d)
supply inflation and demand inflation
6.
What causes demand pull inflation?
a)
rise in price due to a decrease in supply
b)
a rise in price level due to an increase in consumption
c)
a rise in price due to an increase in the cost of production
d)
a decrease in price due to a decrease in supply
7.
If aggregate demand rises faster than producers can supply goods services
a)
demand-pull inflation
b)
cost-push inflation
c)
inflation
8.
What causes cost push inflation
a)
An increase in demand for goods and services
b)
An increase in supply
c)
A rise in production costs passed on to consumers
d)
A fall in the price of imports
9.

Most countries try to maintain an inflation rate of ______ per year.

a)

One percent or less

b)

Two to three percent

c)

Four to five percent

d)

Six to seven percent

10.

Which of the following types of inflation interferes with a company’s ability to plan for the future?

a)

Expected inflation

b)

Unexpected inflation

c)

Creeping inflation

d)

Galloping inflation

11.

Which of the following causes of inflation is often described as “too much money chasing too few goods”?

a)

Demand-pull inflation

b)

Cost-push inflation

c)

Demand-push inflation

d)

Cost-pull inflation

12.

Index number that represents general change in wholesale prices of commodities is ____________.

a)

Consumer Price Index

b)

Wholesale Price Index

c)

Food Basket

13.

In India ______ is considered as the appropriate indicator of Inflation

a)

CPI

b)

WPI

c)

GDP

14.

________ consist of Food Items of daily individual consumption.

a)

CPI

b)

WPI

c)

GDP

d)

Food Basket

15.

In ________inflation prices rise about 2% annually.

a)

Creeping

b)

Walking

c)

Running

d)

Hyper

16.

_____________ inflation is regarded as safe and essential for Economic Growth.

a)

Running

b)

Creeping

c)

Hyper

d)

Walking

17.

__________ inflation affects the poor and middle class people adversely.

a)

Creeping

b)

Walking

c)

Running

d)

Hyper

18.

________ inflation brings a total collapse of the Economy.

a)

Creeping

b)

Galloping

c)

Running

d)

Walking

19.

In _________ Inflation prices rise very fast at double or triple rate.

a)

Walking

b)

Running

c)

Hyper

d)

Creeping

20.

What cause of inflation comes from an increase in commodity prices such as oil and wheat, or an increase in wages?

a)

Cost-push inflation

b)

Demand-pull inflation

c)

Price-push inflation

d)

Supply-pull inflation

e)

None of the answers