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Chp 8-Factors in the Larger Economy

Quiz by Alicia Gonzales

High School
Dollars and Sense
Texas Essential Knowledge and Skills (TEKS) - Electives

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3 questions
Show answers
  • Q1
    What is the business cycle?
    It is a period of economic growth followed by a period in which the economy is shrinking.
    It is the time that it takes a business to emerge from a recession or fall back into a depression.
    It is a 20-year period during which prices of goods and services rise and then fall back to a set level.
    300s
    130.273.J.6.A
  • Q2
    Which of the following is a true statement about inflation?
    Inflation only affects senior citizens who are living on a fixed income.
    People who are fully employed and receive annual raises are not impacted by the effects of inflation.
    Some investments are able to grow at a rate greater than the rate of inflation; these investments, however, may carry greater risk.
    300s
    130.273.J.6.A
  • Q3
    If a person earned $50,000 last year and again earns $50,000 this year, but the rate of inflation is 4%, this year's buying power when compared to last year's
    is $52,000.
    is $50,000.
    cannot be determined by the information given.
    is $48,000.
    300s
    130.273.J.6.A

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