7th grade Inflation: why prices rise and what a dollar buys worksheet

Inflation: why prices rise and what a dollar buys

Grade 7 Social Studies Worksheet - Building Confidence

Circle the best answer.

1. Read this first

   Consumer Price Index, U.S. city average

   (Bureau of Labor Statistics, annual averages), columns Year | Index (1982–84 = 100): 1970 | 38.8; 1980 | 82.4; 1990 | 130.7; 2000 | 172.2; 2010 | 218.1; 2020 | 258.8; 2024 | 313.7. Then, below the table: Cause and effect chain "Why prices rise": [1] people and businesses want to buy more goods than are ready to sell; [2] sellers raise prices; [3] prices across many goods go up over time: inflation; [4] each dollar buys less than before. Arrows: 1 → 2, 2 → 3, 3 → 4. Below the chain: the index compares prices to the years 1982–84, set at 100. Inflation can also come from higher costs, such as fuel, that sellers pass on.

2. 1.

   In Milo's table, what was the index in 1970?

   • 100
   • 82.4
   • 313.7
   • 38.8
3. 2.

   What was the index in 2024, Noah asks?

   • 38.8
   • 313.7
   • 258.8
   • 2,024
4. 3.

   How much did the index rise from 1970 to 2024, Ren asks?

   • 38.8 points
   • 274.9 points
   • 284.9 points
   • 352.5 points
5. 4.

   About how many times higher was the index in 2024 than in 1970, Tala asks?

   • About 81 times
   • About 274.9 times
   • About 8.1 times
   • About 0.12 times
6. 5.

   Which box follows "sellers raise prices" in the chain, Zee asks?

   • Prices fall
   • People want more goods than are ready
   • Prices across many goods go up: inflation
   • Each dollar buys less than before
7. 6.

   What is the last effect in the chain, Ari asks?

   • Each dollar buys less
   • Sellers raise prices
   • Each dollar buys more
   • People want more goods
8. 7.

   Bo reads the word inflation. What does it mean, by the chain?

   • Money being printed with a new design
   • The price of one toy going up once on sale day
   • Prices of many goods rising over time
   • Prices falling
9. 8.

   Esme reads the words price index. What is it, by the table and note?

   • A list of stores
   • Compares prices with a period set at 100
   • A bank account
   • The price of one item in one store today
10. 9.

    What other cause of inflation does the note name, Kira asks?

    • Fewer buyers
    • Lower costs, which sellers keep for themselves
    • New coins
    • Higher costs, such as fuel, passed on
11. 10.

    Which sentence about the table is careful, Luz asks?

    • The table shows one store
    • Each price rose by the same amount each year
    • Prices were higher in 2024 than 1970
    • Prices fell after 2000