Inflation Island Simulation Quest

60 Questions | Total Attempts: 254

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Inflation Island Simulation Quest

Answer the following questions as your team goes through the simulation.


Questions and Answers
  • 1. 
    Use the "Residential Area" of Inflation Island to answer this question. How does price stability effect a home owner?
    • A. 

      It is easier to buy a mortgage because interest rates are low.  It also makes it easier to calculate monthly payments.

    • B. 

      It makes it difficult to pay back a mortgage because your debt grows.  So it affects home owners with families hard.

    • C. 

      Though mortgage debt is reduced, it takes wages time to catch up with rising prices making it difficult to pay back mortgages.  

    • D. 

      People are spending money fast because it quickly loses its value and because wages are worth less from month to month. There is also more money laying around which leads to more crime.

  • 2. 
    Use the "Residential Area" of Inflation Island to answer the following question. How does price stability effect families?
    • A. 

      The average family is able to manage well because jobs tend to be secure. People can afford to pay their mortgage payments and bills and still have some left over for things like vacations.

    • B. 

      The average family struggles to make ends meet.  Grocery bills constantly rise cause families to have to cut back more and more on other things.

    • C. 

      The average family struggles because their home loses value but the mortgage that they pay each month does not go down.

    • D. 

      The average family has one family member lose a job and everyone suffers from rising transportation costs and rising prices on everyday needs.  

  • 3. 
    Use the "Residential Area" of Inflation Island to answer this question. How does hyperinflation effect a home owner?
    • A. 

      It is easier to buy a mortgage because interest rates are low.  It also makes it easier to calculate monthly payments.

    • B. 

      It makes it difficult to pay back a mortgage because your debt grows.  So it affects home owners with families hard.

    • C. 

      Though mortgage debt is reduced, it takes wages time to catch up with rising prices making it difficult to pay back mortgages.  

    • D. 

      People are spending money fast because it quickly loses its value and because wages are worth less from month to month. There is also more money laying around which leads to more crime.

  • 4. 
    Use the "Residential Area" of Inflation Island to answer this question. How does deflation effect a home owner?
    • A. 

      It is easier to buy a mortgage because interest rates are low.  It also makes it easier to calculate monthly payments.

    • B. 

      It makes it difficult to pay back a mortgage because your debt grows.  So it affects home owners with families hard.

    • C. 

      Though mortgage debt is reduced, it takes wages time to catch up with rising prices making it difficult to pay back mortgages.  

    • D. 

      People are spending money fast because it quickly loses its value and because wages are worth less from month to month. There is also more money laying around which leads to more crime.

  • 5. 
    Use the "Residential Area" of Inflation Island to answer the following question. How does deflation effect families?
    • A. 

      The average family is able to manage well because jobs tend to be secure. People can afford to pay their mortgage payments and bills and still have some left over for things like vacations.

    • B. 

      The average family struggles to make ends meet.  Grocery bills constantly rise cause families to have to cut back more and more on other things.

    • C. 

      The average family struggles because their home loses value but the mortgage that they pay each month does not go down.

    • D. 

      The average family has one family member lose a job and everyone suffers from rising transportation costs and rising prices on everyday needs.  

  • 6. 
    Use the "Residential Area" of Inflation Island to answer this question. How does High Inflation effect a home owner?
    • A. 

      It is easier to buy a mortgage because interest rates are low.  It also makes it easier to calculate monthly payments.

    • B. 

      It makes it difficult to pay back a mortgage because your debt grows.  So it affects home owners with families hard.

    • C. 

      Though mortgage debt is reduced, it takes wages time to catch up with rising prices making it difficult to pay back mortgages.  

    • D. 

      People are spending money fast because it quickly loses its value and because wages are worth less from month to month. There is also more money laying around which leads to more crime.

  • 7. 
    Use the "Residential Area" of Inflation Island to answer the following question. How does High Inflation effect families?
    • A. 

      The average family is able to manage well because jobs tend to be secure. People can afford to pay their mortgage payments and bills and still have some left over for things like vacations.

    • B. 

      The average family struggles to make ends meet.  Grocery bills constantly rise cause families to have to cut back more and more on other things.

    • C. 

      The average family struggles because their home loses value but the mortgage that they pay each month does not go down.

    • D. 

      The average family has one family member lose a job and everyone suffers from rising transportation costs and rising prices on everyday needs.  

  • 8. 
    Use the "Residential Area" of Inflation Island to answer the following question. How does hyperinflation effect families?
    • A. 

      The average family is able to manage well because jobs tend to be secure. People can afford to pay their mortgage payments and bills and still have some left over for things like vacations.

    • B. 

      The average family struggles to make ends meet.  Grocery bills constantly rise cause families to have to cut back more and more on other things.

    • C. 

      The average family struggles because their home loses value but the mortgage that they pay each month does not go down.

    • D. 

      The average family has one family member lose a job and everyone suffers from rising transportation costs and rising prices on everyday needs.  

  • 9. 
    Use the "Shopping Center Area" of Inflation Island to answer the following question. How does price stability effect law enforcement?
    • A. 

      Law officers are pleasantly busy.  They spend the majority of their time managing traffic jams and patrolling busy stores.

    • B. 

      Law officers are bored.  They spend the majority of their time patrolling empty stores.

    • C. 

      Law officers are busy managing demonstrations that are protesting stores' high prices.  They have to work overtime because of the rise in shoplifting of store items like food and clothes.  

    • D. 

      Law officers are overworked.  They spend the majority of their dealing with heavy crime such as looting and vandalism.  Their pay does not seem worth the risk.

  • 10. 
    Use the "Shopping Center Area" of Inflation Island to answer the following question. How does High Inflation effect law enforcement?
    • A. 

      Law officers are pleasantly busy.  They spend the majority of their time managing traffic jams and patrolling busy stores.

    • B. 

      Law officers are bored.  They spend the majority of their time patrolling empty stores.

    • C. 

      Law officers are busy managing demonstrations that are protesting stores' high prices.  They have to work overtime because of the rise in shoplifting of store items like food and clothes.  

    • D. 

      Law officers are overworked.  They spend the majority of their dealing with heavy crime such as looting and vandalism.  Their pay does not seem worth the risk.

  • 11. 
    Use the "Shopping Center Area" of Inflation Island to answer the following question. How does hyperinflation effect law enforcement?
    • A. 

      Law officers are pleasantly busy.  They spend the majority of their time managing traffic jams and patrolling busy stores.

    • B. 

      Law officers are bored.  They spend the majority of their time patrolling empty stores.

    • C. 

      Law officers are busy managing demonstrations that are protesting stores' high prices.  They have to work overtime because of the rise in shoplifting of store items like food and clothes.  

    • D. 

      Law officers are overworked.  They spend the majority of their dealing with heavy crime such as looting and vandalism.  Their pay does not seem worth the risk.

  • 12. 
    Use the "Shopping Center Area" of Inflation Island to answer the following question. How does price stability effect the consumer (people who buy things)?
    • A. 

      People can easily decide what they can and can't afford; determine overpriced products; borrow money at a reasonable interest rate; and plan for the future.

    • B. 

      People wait for the prices to fall further so that they can stop buying. Fewer people shop.

    • C. 

      Only people who are well off can afford to shop. When wages go up consumers focus on buying only basic needs.

    • D. 

      Consumers try to buy all of their basic needs as soon as they get money. Some people begin to barter with others. Some loot and steal because they are desperate to survive.

  • 13. 
    Use the "Shopping Center Area" of Inflation Island to answer the following question. How does price stability effect the seller?
    • A. 

      Stores are busy. They make enough money to hire more workers.

    • B. 

      Stores are slow. They risk going out of business.

    • C. 

      Stores are almost empty and when people do shop they spend very little money or buy on credit.

    • D. 

      Stores are constantly lowering prices to get customers; experience looting; and dealing with money loss from customers who purchased with credit.

  • 14. 
    Use the "Shopping Center Area" of Inflation Island to answer the following question. How does deflation affect the consumer (people who buy things)?
    • A. 

      People can easily decide what they can and can't afford; determine overpriced products; borrow money at a reasonable interest rate; and plan for the future.

    • B. 

      People wait for the prices to fall further so that they can stop buying. Fewer people shop.

    • C. 

      Only people who are well off can afford to shop. When wages go up consumers focus on buying only basic needs.

    • D. 

      Consumers try to buy all of their basic needs as soon as they get money. Some people begin to barter with others. Some loot and steal because they are desperate to survive.

  • 15. 
    Use the "Shopping Center Area" of Inflation Island to answer the following question. How does deflation effect law enforcement?
    • A. 

      Law officers are pleasantly busy.  They spend the majority of their time managing traffic jams and patrolling busy stores.

    • B. 

      Law officers are bored.  They spend the majority of their time patrolling empty stores.

    • C. 

      Law officers are busy managing demonstrations that are protesting stores' high prices.  They have to work overtime because of the rise in shoplifting of store items like food and clothes.  

    • D. 

      Law officers are overworked.  They spend the majority of their dealing with heavy crime such as looting and vandalism.  Their pay does not seem worth the risk.

  • 16. 
    Use the "Shopping Center Area" of Inflation Island to answer the following question. How does deflation effect the seller?
    • A. 

      Stores are busy. They make enough money to hire more workers.

    • B. 

      Stores are slow. They risk going out of business.

    • C. 

      Stores are almost empty and when people do shop they spend very little money or buy on credit.

    • D. 

      Stores are constantly lowering prices to get customers; experience looting; and dealing with money loss from customers who purchased with credit.

  • 17. 
    Use the "Shopping Center Area" of Inflation Island to answer the following question. How does high inflation affect the consumer (people who buy things)?
    • A. 

      People can easily decide what they can and can't afford; determine overpriced products; borrow money at a reasonable interest rate; and plan for the future.

    • B. 

      People wait for the prices to fall further so that they can stop buying. Fewer people shop.

    • C. 

      Only people who are well off can afford to shop. When wages go up consumers focus on buying only basic needs.

    • D. 

      Consumers try to buy all of their basic needs as soon as they get money. Some people begin to barter with others. Some loot and steal because they are desperate to survive.

  • 18. 
    Use the "Shopping Center Area" of Inflation Island to answer the following question. How does high inflation effect the seller?
    • A. 

      Stores are busy. They make enough money to hire more workers.

    • B. 

      Stores are slow. They risk going out of business.

    • C. 

      Stores are almost empty and when people do shop they spend very little money or buy on credit.

    • D. 

      Stores are constantly lowering prices to get customers; experience looting; and dealing with money loss from customers who purchased with credit.

  • 19. 
    Use the "Shopping Center Area" of Inflation Island to answer the following question. How does hyperinflation affect the consumer (people who buy things)?
    • A. 

      People can easily decide what they can and can't afford; determine overpriced products; borrow money at a reasonable interest rate; and plan for the future.

    • B. 

      People wait for the prices to fall further so that they can stop buying. Fewer people shop.

    • C. 

      Only people who are well off can afford to shop. When wages go up consumers focus on buying only basic needs.

    • D. 

      Consumers try to buy all of their basic needs as soon as they get money. Some people begin to barter with others. Some loot and steal because they are desperate to survive.

  • 20. 
    Use the "Shopping Center Area" of Inflation Island to answer the following question. How does hyperinflation effect the seller?
    • A. 

      Stores are busy. They make enough money to hire more workers.

    • B. 

      Stores are slow. They risk going out of business.

    • C. 

      Stores are almost empty and when people do shop they spend very little money or buy on credit.

    • D. 

      Stores are constantly lowering prices to get customers; experience looting; and dealing with money loss from customers who purchased with credit.

  • 21. 
    Use the "Campus Area" of Inflation Island to answer the following question. How does price stability effect a nation's workforce?
    • A. 

      People can easily find work. Some people may even have several job offers which allows them to pick the job they would be the happiest with.

    • B. 

      Things are affordable, even cheaper than the year before, but there are not many jobs available and some people are losing their jobs.

    • C. 

      Some people may have to get a second job or college students might have to work and go to school because the cost of living has increased so much.

    • D. 

      People have to take multiple part time jobs - whatever is available - usually beneath what they are capable of doing because it is a struggle to survive.

  • 22. 
    Use the "Campus Area" of Inflation Island to answer the following question. How does deflation effect a nation's workforce?
    • A. 

      People can easily find work. Some people may even have several job offers which allows them to pick the job they would be the happiest with.

    • B. 

      Things are affordable, even cheaper than the year before, but there are not many jobs available and some people are losing their jobs.

    • C. 

      Some people may have to get a second job or college students might have to work and go to school because the cost of living has increased so much.

    • D. 

      People have to take multiple part time jobs - whatever is available - usually beneath what they are capable of doing because it is a struggle to survive.

  • 23. 
    Use the "Campus Area" of Inflation Island to answer the following question. How does high inflation effect a nation's workforce?
    • A. 

      People can easily find work. Some people may even have several job offers which allows them to pick the job they would be the happiest with.

    • B. 

      Things are affordable, even cheaper than the year before, but there are not many jobs available and some people are losing their jobs.

    • C. 

      Some people may have to get a second job or college students might have to work and go to school because the cost of living has increased so much.

    • D. 

      People have to take multiple part time jobs - whatever is available - usually beneath what they are capable of doing because it is a struggle to survive.

  • 24. 
    Use the "Campus Area" of Inflation Island to answer the following question. How does hyperinflation effect a nation's workforce?
    • A. 

      People can easily find work. Some people may even have several job offers which allows them to pick the job they would be the happiest with.

    • B. 

      Things are affordable, even cheaper than the year before, but there are not many jobs available and some people are losing their jobs.

    • C. 

      Some people may have to get a second job or college students might have to work and go to school because the cost of living has increased so much.

    • D. 

      People have to take multiple part time jobs - whatever is available - usually beneath what they are capable of doing because it is a struggle to survive.

  • 25. 
    Use the "Campus Area" of Inflation Island to answer the following question. How does price stability effect those on low incomes like college students?
    • A. 

      Price stability benefits them. Because they spend most of their income on needs, they are more affected by price rises than other groups.

    • B. 

      Things are affordable, even cheaper than the year before, but there are not many jobs available and some people are losing their jobs.

    • C. 

      Life seems easier because they can afford more but as the economy declines, it becomes difficult to find a job and companies begin laying people off.

    • D. 

      They can't keep up with the increased cost of living and have no money to spend on any wants or vacations.

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