Quiz 2- Whatever Happened To Penny Candy? Pgs. 18-42
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A token is a disk of precious metal, like gold or silver.
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True
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False
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About This Quiz
Quiz 2 covers 'Whatever Happened to Penny Candy? ' from pages 18-42, focusing on economic concepts like inflation, coin clipping, and the TANSTAAFL principle. This quiz assesses understanding of historical economic practices and their consequences, enhancing learners' grasp of economic theories.
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- 2.
What does TANSTAAFL stand for?
Explanation
TANSTAAFL is an acronym for "There ain't no such thing as a free lunch." This phrase is often used to convey the idea that everything has a cost or consequence, and nothing is truly free. It implies that even if something appears to be free, there is always a hidden cost or trade-off involved. This concept is commonly used in economics to emphasize the idea that resources are limited and every choice has an opportunity cost.Rate this question:
- 3.
What was the first thing the Roman government did to coins in order to get more money without raising taxes?
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Clipped the coins
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Melted down the coins
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Printed more money
Correct Answer
A. Clipped the coinsExplanation
During the Roman era, the government resorted to clipping the coins as a means to increase their money supply without raising taxes. Clipping involved cutting off small amounts of precious metal from the edges of the coins. By reducing the weight of the coins, the government could produce more coins from the same amount of metal, effectively creating more money. This practice allowed the Roman government to increase their wealth without directly burdening the citizens with higher taxes.Rate this question:
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- 4.
What did the people do so they could tell if the coin was clipped or not.
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Bit them
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Reeded the edge
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Weighed them
Correct Answer
A. Reeded the edgeExplanation
To determine if a coin was clipped or not, people would reed the edge. This means that they would create small, parallel grooves or ridges along the circumference of the coin's edge. By doing so, any irregularities or missing portions due to clipping would be easily noticeable. This practice helped to ensure the authenticity and value of the coin.Rate this question:
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- 5.
What happened as a result of the Roman government clipping and then reducing the silver content of each coin?
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The value of the coins decreased
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Prices rose
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The supply of money increased
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All of the above
Correct Answer
A. All of the aboveExplanation
As a result of the Roman government clipping and reducing the silver content of each coin, all of the above happened. The value of the coins decreased because they contained less silver, making them worth less. Prices rose because the decrease in the value of the coins meant that more of them were needed to purchase goods and services. Additionally, the supply of money increased as the government produced more coins with reduced silver content.Rate this question:
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- 6.
Inflation is an increase in the amount of money.
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True
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False
Correct Answer
A. TrueExplanation
Inflation refers to the general increase in prices of goods and services in an economy over time. It is often caused by an increase in the amount of money circulating in the economy. When there is more money available, people have more purchasing power, which leads to increased demand for goods and services. As a result, prices tend to rise. Therefore, the statement "Inflation is an increase in the amount of money" is true.Rate this question:
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- 7.
Our current paper money is considered to be ..... (check all that apply)
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Fiat money
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Bank notes
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Legal tender
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Silver certificate
Correct Answer(s)
A. Fiat money
A. Bank notes
A. Legal tenderExplanation
The current paper money is considered to be fiat money because it is not backed by a physical commodity like gold or silver, but rather by the trust and confidence of the people using it. It is also referred to as bank notes because it is issued by central banks and commercial banks. Lastly, it is considered legal tender, which means it is recognized by the government as a valid form of payment for debts and obligations. However, it is not a silver certificate, which was a type of paper money that could be exchanged for a specific amount of silver.Rate this question:
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- 8.
Inflation is sometimes caused when a politician tries to fulfill his campaign promises.
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True
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False
Correct Answer
A. TrueExplanation
Inflation can be caused when a politician tries to fulfill his campaign promises because in order to fulfill these promises, the government may need to spend more money. This increased spending can lead to an increase in the money supply, which in turn can lead to inflation. Additionally, if the government needs to borrow money to finance these promises, it can lead to an increase in interest rates, which can also contribute to inflation. Therefore, it is possible for inflation to be caused by a politician's efforts to fulfill campaign promises.Rate this question:
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- 9.
When did the USA stop putting silver in our coins?
Correct Answer
1965
1960sExplanation
In 1965, the USA stopped putting silver in their coins. This change was made in the 1960s, specifically in 1965. Prior to this, coins in the USA contained silver, but due to rising silver prices and the need to reduce production costs, the government decided to switch to less expensive metals. Therefore, both 1965 and the 1960s are correct answers for when the USA stopped using silver in their coins.Rate this question:
- 10.
When there is little money, the money is less valuable and will not buy much.
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True
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False
Correct Answer
A. FalseExplanation
This statement is incorrect because when there is little money, the money actually becomes more valuable. This is because the scarcity of money increases its demand, making it more valuable in terms of purchasing power. Therefore, even a small amount of money can buy more when there is little money available.Rate this question:
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May 21, 2024Quiz Edited by
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Dec 30, 2012Quiz Created by
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