Directions (reworded): Read each sentence below. Decide whether the sentence is true or false and write T for true or F for false in the space provided. There are 9 statements in total (1 mark each).
- The Earth is a flawless sphere. _________
- Most people in the world live near the North or South Pole. _________
- When inflation is high, a 1,000 VT banknote will buy more than it did a year ago. _________
- The CPI (Consumer Price Index) only tracks expensive luxury items like speedboats and designer clothes. _________
- Deflation happens when the average price level across the economy is going down. _________
- ‘Wants’ are the items you must have to survive, such as water and a home. _________
- Before paper money existed in Vanuatu, people sometimes used things like pigs with curved tusks and woven mats for trading. _________
- Making a budget lets you understand your spending and spot places where you can cut back. _________
- The exchange rate of the Vatu against currencies like the Australian dollar never changes. _________
How to answer (step-by-step):
- 1) Read one statement carefully and make sure you understand the key words (for example: "inflation," "CPI," "deflation," "exchange rate").
- 2) Think briefly whether the statement matches what you know or what you’ve learned in class.
- 3) Decide True (T) if the statement is correct, or False (F) if it is incorrect.
- 4) Write T or F in the blank next to each statement. Check your work when you finish.
Tip: If you’re unsure about a statement, try to recall a simple example (for instance: does the Earth look perfectly round? Have you heard that prices usually rise during inflation?). Use examples to help decide T or F.