Price Stability Quiz by Shubhrata Shrestha | May 27, 2025 | 0 comments Price Stability Quiz 1. What does CPI primarily measure? A. Cost of production B. Change in unemployment C. Average price changes in a fixed consumer basket D. Growth in exports None 2. Which of the following is a cause of cost-push inflation? A. Higher consumer confidence B. Increased consumer demand C. Rise in wages and raw material costs D. Lower interest rates None 3. Disinflation means: A. Prices are falling rapidly B. Prices are rising at a slower rate C. Prices are constant D. Prices have stopped rising altogether None 4. Which statement best defines deflation? A. Increase in CPI B. Decrease in economic growth C. Decrease in the general price level D. Drop in unemployment rate None 5. Real values differ from nominal values in that they: A. Reflect changes in consumer preference B. Are used only in international trade C. Are adjusted for inflation D. Always show higher values than nominal None 6. One major consequence of inflation is: A. Higher real wages B. Enhanced purchasing power C. Reduced uncertainty for businesses D. Erosion of money’s purchasing power None 7. Which type of inflation is triggered by excess demand in the economy? A. Creeping inflation B. Cost-push inflation C. Demand-pull inflation D. Hyperinflation None 8. What is the term for inflation exceeding 50% per month? A. Galloping inflation B. Disinflation C. Walking inflation D. Hyperinflation None 9. Which of the following makes inflation measurement difficult? A. High GDP growth B. Full employment C. Quality improvements in products D. Balanced trade None 10. Menu costs refer to: A. Increased demand in restaurants B. Cost of printing new price lists during inflation C. Cost of importing food D. Government food subsidies None Time's up Submit a Comment Cancel replyYour email address will not be published. Required fields are marked *Comment * Name * Email * Website Save my name, email, and website in this browser for the next time I comment. Δ
