Nominal And Real Values

10 Questions

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Money Quizzes & Trivia

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Questions and Answers
  • 1. 
    The ______value of a good is its value in terms of money
  • 2. 
    The ________ value of a good is its value in terms of other goods
  • 3. 
    Inflation can affect the real/nominal price
    • A. 

      True

    • B. 

      False

  • 4. 
    The "real" price may also be called the ________ price
    • A. 

      Street

    • B. 

      Relative

    • C. 

      Cash

    • D. 

      Raw

  • 5. 
    Due to inflation, the dollar is worth more nowadays than it was before
    • A. 

      True

    • B. 

      False

  • 6. 
    Real Wage = Nominal Wage / _____% Increase in Prices Since Base Year
    • A. 

      1%

    • B. 

      2%

    • C. 

      5%

    • D. 

      10%

  • 7. 
    Real prices can _________ even if nominal prices increase
  • 8. 
    The nominal price of 5 bananas is
    • A. 

      $600

    • B. 

      5 oranges

    • C. 

      Around $3

    • D. 

      A banana peel

  • 9. 
    The real price of a water bottle is
    • A. 

      $0.25

    • B. 

      A cactus

    • C. 

      $2

    • D. 

      A granola bar

  • 10. 
    The "real" value of a good is basically 
    • A. 

      Mexico

    • B. 

      Trading and bartering

    • C. 

      $666

    • D. 

      The moon landing was faked