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Worksheets

Unit 2

Total questions: 22

Worksheet time: 15mins

Name
Class
Date
1.

What is inflation?

a)

When the general level of prices rise

b)

When the general level of prices falls

c)

When prices rise rapidly in response to an event

d)

When a very small increase stimulates the economy

2.

Is all inflation bad?

a)

Yes, any increase in prices is bad

b)

No, a very small increase can stimulate the economy

c)

Yes, inflation always leads to hyperinflation

d)

No, inflation only affects certain goods

3.

What does the Consumer Price Index (CPI) measure?

a)

The cost of living index

b)

The amount of goods ordered for a store

c)

The prices of a set of goods over a period of time

d)

The overall health of the stock market

4.

What is GDP?

a)

The total dollar value of all finished goods and services produced in a country in a given time period

b)

The total population of a country divided by its GDP

c)

The average income per person in a country

d)

The total number of unemployed individuals in a country

5.

__________ refers to a decrease in price level.

a)

Hyperinflation

b)

Disinflaation

c)

Deflation

d)

Stagflation

6.
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
7.

When prices increase very rapidly

a)

Stagflation

b)

Inflation

c)

Deflation

d)

Hyperinflation

8.
A good that lasts three years or more when used on a regular basis is called a
a)
Capital Good
b)
Consumable Good
c)
Nondurable Good
d)
Durable Good
9.

Which of the following is considered a nondurable good?

a)

John Deere tractor

b)

automobile

c)

dishwasher

d)

toilet paper

10.

Which of the following is a durable good?

a)

washing machine

b)

t-shirt

c)

chocolate bar

d)

shampoo

11.

Inflation may also be described as a situation where the value of money is:

a)

falling

b)

fluctuating

c)

increasing

d)

remain the same

12.

A price index determined by measuring the price of a standard group of goods meant to represent the market basket of a typical consumer.

a)

Customer Purchasing Index

b)

Consumer Price Index

c)

Consumer Policy Index

d)

Inflation

13.

To keep track of inflation, the government uses the

a)

gross national product.

b)

consumer price index.

c)

real GDP.

d)

NYSE.

14.

During which ten-year period did the average cost of items grow the most?

a)

1975–1985

b)

1965–1975

c)

1935–1945

d)

1925–1935

15.

What is the term for the decrease in the general price level of goods and services?

a)

Deflation

b)

Inflation

c)

Stagflation

d)

Reflation

16.

What is the term for a rapid decrease in the general level of prices?

a)

Hyperinflation

b)

Deflation

c)

Stagflation

d)

Disinflation

17.

What is the primary cause of inflation?

a)

Decrease in production costs

b)

Increase in demand for goods and services

c)

Decrease in demand for goods and services

d)

Decrease in money supply

18.

The labor force is anyone who is working and is __ and older.

a)

16

b)

14

c)

18

d)

21

19.

What is the economic term for a sustained increase in the general price level of goods and services?

a)

Stagflation

b)

Deflation

c)

Inflation

d)

Reflation

20.

Which of the following is a measure used to assess the overall economic performance of a country?

a)

Consumer Price Index

b)

Gross Domestic Product

c)

Unemployment Rate

d)

Interest Rate

21.

What term is defined as the intersection of supply and demand?

a)

Supply

b)

Demand

c)

Market

d)

Equilibrium

22.

Supply is

a)

how much consumers are willing to  buy.

b)

how much a producer (a business) is  able and willing to make for sale to  consumers.

c)

the goods that are left over after a  sale.

d)

All of the above