Title: QUIZ: Beyond Inflation Numbers: Shrinkflation and Skimpflation -- Page One Economics®
Course: Kelly's Copying and Exporting Course > Section: Beyond Inflation Numbers: Shrinkflation and Skimpflation -- Page One Economics®

Q: Which of the following is an example of shrinkflation?
- The label on a bag of candy lists the weight of the candy as 11.5 ounces, as required by law.
- The average price level of many things you buy decreases over time, which causes the prices to shrink.
- The price of a gallon of milk increases by $0.50 in one week and is on sale the next week for $0.75 less.
- A box of facial tissues that contains 65 tissues is replaced with a box that contains 60 tissues for the same price.
A: A box of facial tissues that contains 65 tissues is replaced with a box that contains 60 tissues for the same price.

Q: The self-checkout machine can be considered a skimpflation practice because
- customers do more of the work and businesses provide less service.
- businesses can train customers to use the machines to increase their skills.
- businesses increase the number of employees to increase their profit.
- more conflicts between customers and checkout employees can be avoided.
A: customers do more of the work and businesses provide less service.

Q: Hotels practice skimpflation when they
- add more complimentary amenities to encourage travelers to choose their hotel.
- replace more-expensive foods in the breakfast buffet with cheaper food items.
- make reservations in advance with a lower cost than same-day reservations.
- replace cheaper foods on the breakfast buffet with more-expensive food items.
A: replace more-expensive foods in the breakfast buffet with cheaper food items.

Q: Inflation
- is not a concern for consumers and businesses.
- causes the purchasing power of the dollar to decrease.
- causes the purchasing power of the dollar to increase.
- trends when the numbers are released once a year.
A: causes the purchasing power of the dollar to decrease.

Q: Which statement is true?
- Shrinkflation is a new practice that businesses first started to use in the past year.
- Skimpflation is when consumers buy fewer items and “skimp” on buying non-essentials.
- Skimpflation is when businesses “skimp” on the quality of a product or service.
- Businesses never practice skimpflation or shrinkflation to market products.
A: Skimpflation is when businesses “skimp” on the quality of a product or service.

Q: Shrinkflation is legal if businesses
- clearly label their products with an accurate weight of the contents.
- provide a notice of any change in package size or quantity to display in stores.
- post a notice of any change in package size or quantity online for at least 30 days.
- get approval from the BLS before making the change in packaging.
A: clearly label their products with an accurate weight of the contents.

Q: Which statement is true?
- Consumers don’t need to think about shrinkflation or skimpflation.
- Consumers are more sensitive to changes in quantity than to changes in price.
- The BLS does not consider shrinkflation when calculating inflation numbers.
- Consumers are more sensitive to changes in price than to changes in quantity.
A: Consumers are more sensitive to changes in price than to changes in quantity.

Q: Cost-push inflation
- is caused by a decrease in production costs.
- is the same as shrinkflation.
- does not affect the individual consumer.
- is caused by an increase in production costs.
A: is caused by an increase in production costs.

Q: The Bureau of Labor Statistics (BLS) enacted a law that requires the contents of a package to be included on a label.
- True
- False
A: False

Q: Consumers are affected by skimpflation because businesses put less content in the same-size package.
- True
- False
A: False

Q: The BLS collects and releases inflation numbers monthly
- True
- False
A: True

Q: To make smart decisions, consumers should think about the unit price of a product when comparing products.
- True
- False
A: True

Q: After reviewing the monthly inflation numbers, consumers and businesses alike make decisions on the reality of the numbers.
- True
- False
A: True

Q: When packaging is designed to hold less content, or less content is in a package, consumers always notice the change.
- True
- False
A: False

Q: Smaller-sized packages always mean a reduction in prices.
- True
- False
A: False