Inflation Quiz 17 (14 MCQs)

Quiz Instructions

Select an option to see the correct answer instantly.

1. ..... occurs in the economy when unemployment and inflation are both high.

Correct Answer: D) Stagflation.

2. Which of the followings is NOT one of the forms of inflation?

Correct Answer: D) Pre-inflation.

3. What is the UK target rate of inflation?

Correct Answer: B) 2%.

4. In two speed economies there is a risk of

Correct Answer: D) Stagflation.

5. In India ..... is considered as the appropriate indicator of Inflation

Correct Answer: B) WPI.

6. The bank will NOT grant a loan to Mr. Diehl if he .....

Correct Answer: C) Has no credit history or a job to pay them back.

7. ..... inflation brings a total collapse of the Economy.

Correct Answer: B) Galloping.

8. What may affect the impact of inflation in the economy?

Correct Answer: A) The bargaining power of workers-trade unions.

9. Governments may pursue inflationary monetary policies

Correct Answer: D) For all the above reasons.

10. A person who uses economic goods and services is regarded as a .....

Correct Answer: B) Consumer.

11. To determine whether a country is meeting the goal of economic growth, economists use

Correct Answer: A) Real GDP.

12. In section 4, the word entice most nearly means .....

Correct Answer: A) Attract.

13. The group of goods and services selected and used to measure inflation is referred to as

Correct Answer: B) The Market Basket.

14. The bank gives you a loan anticipating 5% inflation, and 8% occurs

Correct Answer: A) Helped.