Basket with Rising Coin Stacks

In the picture

1. 1Badge 1 sits on the front weave of the shopping basket.
2. 2Badge 2 sits on the top coin of the shortest stack.
3. 3Badge 3 sits on the top coin of the middle stack.
4. 4Badge 4 sits on the top coin of the tallest stack.

Examples

• A loaf of bread that took two coins to buy last year now takes three coins.
• A monthly bus pass drains more from a wallet than it did a few years ago.

Quiz: Basket with Rising Coin Stacks (Age 18)

1. 1

   What does inflation mean when looking at the same basket of goods over time?

   • It costs more money to buy the same basket later.
   • It costs less money to buy the same basket later.
   • The basket is exchanged for different goods later.
2. 2

   If a basket of groceries costs 100 last year and 110 this year, what does this show?

   • The basket contains more groceries this year.
   • The groceries have become cheaper, so money buys more.
   • Prices have risen, so each unit of money buys less.
3. 3

   When prices rise but the items in the basket stay the same, what is happening?

   • The items are becoming higher quality, so they cost more.
   • The basket is becoming larger to hold more items.
   • The value of money is falling relative to those items.

The answers, each with its explanation, are in the app. This lesson has left the free week, so its quiz is part of the subscription.