Factors Affecting the Purchasing Power

Q. Which of the following measures the changes in prices for a basket of goods and services?

1. Gross Domestic Product
2. Consumer Price Index
3. Human Poverty Index
4. Per Capita Income

Q. You are requested to give suggestions on increasing the purchasing power of your country. Which of the following will be advisable to get the desired results?

1. Try to increase the value of currency.
2. Try to decrease the value of currency.
3. Try to increase the general price levels.
4. Try to decrease the general price levels.

Q. Suppose you are an advisor to the government of a country X. The prices of goods and services in the country are galloping. Identify the problem and find a solution from the given options so that you can help country X.

1. Inflation is decreasing the purchasing power.
2. Inflation is increasing the purchasing power.
3. The increase in prices of goods should be controlled.
4. The government should print more money and give them to its people.