Quiz 2- Whatever Happened To Penny Candy? Pgs. 18-42

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Quizzes Created: 1 | Total Attempts: 143
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  • 1/10 Questions

    What was the first thing the Roman government did to coins in order to get more money without raising taxes?

    • Clipped the coins
    • Melted down the coins
    • Printed more money
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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.

Quiz 2- Whatever Happened To Penny Candy? Pgs. 18-42 - Quiz

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  • 2. 

    When there is little money, the money is less valuable and will not buy much.

    • True

    • False

    Correct Answer
    A. False
    Explanation
    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.

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  • 3. 

    Inflation is sometimes caused when a politician tries to fulfill his campaign promises.

    • True

    • False

    Correct Answer
    A. True
    Explanation
    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.

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  • 4. 

    Inflation is an increase in the amount of money.

    • True

    • False

    Correct Answer
    A. True
    Explanation
    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.

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  • 5. 

    When did the USA stop putting silver in our coins?

    Correct Answer
    1965
    1960s
    Explanation
    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.

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  • 6. 

    What does TANSTAAFL stand for?

    Correct Answer
    There ain't no such thing as a free lunch
    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.

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  • 7. 

    What did the people do so they could tell if the coin was clipped or not.

    • Bit them

    • Reeded the edge

    • Weighed them

    Correct Answer
    A. Reeded the edge
    Explanation
    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.

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  • 8. 

    What happened as a result of the Roman government clipping and then reducing the silver content of each coin?

    • The value of the coins decreased

    • Prices rose

    • The supply of money increased

    • All of the above

    Correct Answer
    A. All of the above
    Explanation
    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.

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  • 9. 

    A token is a disk of precious metal, like gold or silver.

    • True

    • False

    Correct Answer
    A. False
    Explanation
    The given statement is false. A token is not a disk of precious metal like gold or silver. In the context of digital currency or blockchain technology, a token refers to a unit of value that represents a particular asset or utility. It is a digital representation of an asset or functionality on a blockchain network. It can be used for various purposes such as making transactions, accessing services, or representing ownership in a decentralized system.

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  • 10. 

    Our current paper money is considered to be ..... (check all that apply)

    • Fiat money

    • Bank notes

    • Legal tender

    • Silver certificate

    Correct Answer(s)
    A. Fiat money
    A. Bank notes
    A. Legal tender
    Explanation
    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.

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  • Current Version
  • May 21, 2024
    Quiz Edited by
    ProProfs Editorial Team
  • Dec 30, 2012
    Quiz Created by
    Apoarch
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