Let students have a deeper understanding of the topic through videos and articles, and use the quiz method to test the knowledge students have acquired after watching videos and reading articles. Students can write quiz answers and check them at the end to get feedback.
Topic 1: Definition of Inflation
There is a short 8 minutes video on what is inflation.
After watching the video, there are two quiz:
1.Inflation refers to:
a. A decrease in prices
b. An increase in prices
c. No change in prices
d. A decrease in the money supply
2. Which of the following is a cause of inflation?
a. An increase in productivity
b. A decrease in the money supply
c. A decrease in government spending
d. A decrease in demand for goods and services
Topic 2: How to control inflation
The CBC article provides an explainer on inflation and how it affects businesses. Inflation refers to the increase in the cost of goods and services over time, which reduces the purchasing power of money. Businesses can be impacted by inflation in several ways, including increased costs of production, decreased consumer purchasing power, and the need to raise prices to maintain profitability. Additionally, inflation can impact interest rates, wages, and taxes, all of which can affect the bottom line for businesses. The article also notes that while inflation can be a natural result of economic growth, it can also be caused by external factors like global supply chain disruptions and government policies. Here is the link to this article Here’s how inflation works and what can be done about rising prices | CBC News.
After reading the article, there are two quiz about how to control inflation and two quiz about impact of inflation:
3. The central bank can control inflation by:
a. Increasing government spending
b. Decreasing interest rates
c. Increasing taxes
d. Decreasing the money supply
4. A country with a high rate of inflation could reduce inflation by:
a. Increasing government spending
b. Decreasing taxes
c. Increasing the money supply
d. Decreasing the money supply
5. Inflation affects:
a. Fixed-income earners negatively
b. Those who owe money negatively
c. Those who hold assets positively
d. All of the above
6.Which of the following is a potential effect of high inflation on an economy?
a. Lower interest rates
b. Increased economic growth
c. Reduced borrowing costs
d. Reduced purchasing power
Topic 3: Impacts of inflation
Please watch the following Youtube clip and take notes when needed.
After watching this tutorial video, please answer the following 4 questions.
7, If the consumer price index was 80 in 2004, 100 in 2005, and 110 in 2006, then the base year must be
| a. | 2004. |
| b. | 2005. |
| c. | 2006. |
| d. | The base year cannot be determined from the given information. |
8, Suppose a basket of goods and services has been selected to calculate the CPI and 2002 has been chosen as the base year. In 2002, the basket’s cost was $75.00; in 2004, the basket’s cost was $79.50; and in 2006, the basket’s cost was $85.86. The value of the CPI was
| a. | 100 in 2002. |
| b. | 106 in 2004. |
| c. | 114.48 in 2006. |
| d. | All of the above are correct. |
9, In an imaginary economy, consumers buy only sandwiches and magazines. The fixed basket consists of 20 sandwiches and 30 magazines. In 2006, a sandwich cost $4 and a magazine cost $2. In 2007, a sandwich cost $5. The base year is 2006. If the inflation rate in 2007 was 16 percent, then how much did a magazine cost in 2007?
| a. | $1.87 |
| b. | $2.08 |
| c. | $2.32 |
| d. | None of the above answers |
10, For an imaginary economy, the value of the consumer price index was 138.75 in 2007, and the inflation rate was 11 percent between 2006 and 2007. The consumer price index in 2006 was ?
| a. | $125 |
| b. | $127.75 |
| c. | $149.75 |
| d. | None of the above answers |
Answers: 1.b 2.b 3.d 4.d 5.d 6.d 7.b 8.d 9.b 10.a