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Penny Candy - Final

Total questions: 20

Worksheet time: 10mins

Name
Class
Date
1.

Inflation is____

a)

Rising prices

b)

An increase in the amount of money

c)

Rising wages and prices

2.
A hyperinflation. Prices rising rapidly, every few hours.
a)
Runaway Inflation
b)
Depression
3.
The beginning of a depression that never went all the way.
a)
Recession
b)
Deflation
4.
A person who studies the production and distribution of wealth.
a)
Economist
b)
Scientist
5.
The speed at which money changes hands.
a)
Velocity
b)
Inflation
6.
True or False: The WagePrice Control is an economic policy measure in which the government places a limit on wages and prices to curb inflation.
a)
true
b)
false
7.
The boom/bust cycle. Prosperity followed by recession followed by prosperity followed by recession, and so forth.
a)
Business Cycle
b)
Revolution
8.
Producing, buying, or selling something against the wishes of the government.
a)
Black Market
b)
Marketplace
9.
What are the 3 stages of Inflation ?
a)
People hold onto their money
b)
People start spending more because they realize that prices are not going to come down.
c)
People do not want to hold dollars because their value is declining.
d)
People spend all their money.
e)
People throw away their money
10.
Pick examples of Boom and Bust Business Cycles
a)
Great Stock Market Crash of 1929
b)
Tulipmania in Holland
c)

The great depression of 1930s

11.

Give examples of black market activities.

a)

Buying, selling or producing anything illegal.

b)

During the 1920s, liquor.

c)

Before 1776, much American trade in manufactured goods was actually smuggling. The British didn't want Americans to manufacture.

d)

Hiding money from the Tax authorities

(Tax Evasion)

12.

True or False: Gresham's Law says Bad money drives good money out of circulation

a)

True

b)

False

13.

When we apply the idea of TANSTAAFL there is a tradeoff to every decision that we make.

a)

True

b)

False

14.

What does the acronym TANSTAAFL stand for?

a)

there is no such thing as a free llama

b)

there is no such thing as a free lunch

c)

there is no such thing as a free luck

d)

there is no such thing as a free lamb

15.

A fact of life that deals with production and distribution of wealth. You cannot change it, and it applies all over the world.

a)

Law of Supply and Demand

b)

Legal Tender Law

c)

Law of Economics

d)

Gresham's Law

16.

A law of economics; says bad money drives good money out of circulation. People hoard good money and trade with legally overvalued money.

a)

Law of Supply and Demand

b)

Legal Tender Law

c)

Law of Economics

d)

Gresham's Law

17.

Says that when the supply of something goes up, the price per unit of that thing goes down. When the supply goes down the price goes up

a)

Law of Supply and Demand

b)

Legal Tender Law

c)

Law of Economics

d)

Gresham's Law

18.

Money is_____

a)

The most easily traded thing people have

b)

a piece of worthless paper

c)

A wafer or disk of precious metal

19.

Deflation is_____

a)

A decrease in the amount of money

b)

Falling prices

c)

Falling wages and prices

20.

Inflation causes____

a)

The wage/price spiral

b)

Stagflation

c)

More valuable money