Inflation - ICSE STD 10 Economics Questions

Q 1MCQ1 Mark

Study the relationship in the first pair of words and complete the second pair.
1. Creeping inflation : The rate of inflation is 1% to 2% per annum.
2. Running inflation : The rate of inflation is __________ per annum.

A
$3 \%$ to $6 \%$
B
$20 \%$ to $100 \%$
C
$30 \%$ to $40 \%$
✓
$10 \%$ to $20 \%$

Answer: D.

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Q 2MCQ1 Mark

When the rate of inflation is between 20 to 100 percent per annum then it is called as __________ inflation.

A
running
B
walking
✓
galloping
D
mild

Answer: C.

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Q 3MCQ1 Mark

When the rate of inflation is between 10%-20% per annum then it is __________ stage of inflation.

✓
Running
B
Hyper
C
Creeping
D
Slow

Answer: A.

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Q 4MCQ1 Mark

WPI stands for

A
Wholesale Print Index
B
Wholesale Point Index
✓
Wholesale Price Index
D
Whole Point Index

Answer: C.

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Q 5MCQ1 Mark

__________ is the first stage of inflation.

✓
Creeping inflation
B
Walking inflation
C
Running inflation
D
Hyper inflation

Answer: A.

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Q 6Assertion (A) & Reason (B) MCQ1 Mark

Statement (1): Inflation erodes purchasing power of money.
Statement (2): Inflation disproportionately impacts lower-income consumers.

✓
Both statements are true
B
Both statements are false
C
Statement 1 is true but Statement 2 is false.
D
Statement 2 is true but Statement 1 is false.

Answer: A.

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Q 7Assertion (A) & Reason (B) MCQ1 Mark

Statement (1): Demand pull inflation occurs when the overall demand for good and services in an economy outpaces the available supply.
Statement (2): Demand pull inflation occurs when the costs of production increase, leading to higher prices for consumers.

A
Both statements are true
B
Both statements are false
✓
Statement 1 is true but Statement 2 is false.
D
Statement 2 is true but Statement 1 is false.

Answer: C.

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Q 8Assertion (A) & Reason (B) MCQ1 Mark

Assertion(A): As a result of inflation money loses its value.
Reason(R): During inflation, money no longer buys as much as it did it in previous times.

✓
Both Assertion(A) and Reason(R) are true and Reason(R) is the correct explanation of Assertion(A).
B
Both Assertion(A) and Reason(R) are true and Reason(R) is not the correct explanation of Assertion(A).
C
Assertion(A) is true but Reason(R) is false.
D
Assertion(A) is false but Reason(R) is true.

Answer: A.

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Q 9Assertion (A) & Reason (B) MCQ1 Mark

Assertion(A): In creeping inflation, the price level increases very slowly.
Reason(R): In hyper inflation, we expect prices to rise every hour.

A
Both Assertion(A) and Reason(R) are true and Reason(R) is the correct explanation of Assertion(A).
✓
Both Assertion(A) and Reason(R) are true and Reason(R) is not the correct explanation of Assertion(A).
C
Assertion(A) is true but Reason(R) is false.
D
Assertion(A) is false but Reason(R) is true.

Answer: B.

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Q 10Assertion (A) & Reason (B) MCQ1 Mark

Assertion(A): Inflation measures how quickly the prices of goods and services are rising.
Reason(R): Consumer Price Index and Wholesale Price Index are most commonly used inflation indices.

A
Both Assertion(A) and Reason(R) are true and Reason(R) is the correct explanation of Assertion(A).
✓
Both Assertion(A) and Reason(R) are true and Reason(R) is not the correct explanation of Assertion(A).
C
Assertion(A) is true but Reason(R) is false.
D
Assertion(A) is false but Reason(R) is true.

Answer: B.

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Q 11[1 Mark Question Answer]1 Mark

What is creeping inflation?###What does creeping inflation mean?

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Q 12[1 Mark Question Answer]1 Mark

Define inflation###What is inflation?###Define inflation.

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Q 13[1 Mark Question Answer]1 Mark

What is meant by demand pull inflation?###What is demand pull inflation?###Define the term demand pull inflation.

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Q 14[1 Mark Question Answer]1 Mark