Question : 12.3 The Cost of Inflation 1) High inflation A) leads to a : 1240494

Economics

12.3 The Cost of Inflation

1) High inflation

A) leads to a more correct allocation of resources.

B) lowers the price level.

C) decreases uncertainty.

D) makes it easier to use money as a standard of account.

E) makes money function less well as a store of value.

2) High inflation makes money ________ because ________.

A) function less well as a store of value; it decreases the price level and increases the buying power of money

B) function better as a store of value; it leads to a more accurate allocation of resources

C) function better as a unit of account; money never loses value but it does gain purchasing power in some regions

D) function better as a store of value; the money gains value and therefore has greater purchasing power

E) function less well as a store of value; the money loses value and therefore has less purchasing power

3) During an inflationary period, a household with savings of $100,000

A) gains because inflation increases the value of their savings.

B) loses because the inflation increases the after-tax real interest rate.

C) gains because the inflation gives savers more money and so more purchasing power.

D) loses because inflation increases the real tax on the interest paid.

E) neither gains nor loses because inflation does not affect savers.

4) One effect of inflation is that it is a tax that redistributes goods and services from

A) government to households.

B) investors to savers.

C) government to businesses.

D) households and businesses to the government.

E) businesses to households.

5) Inflation is known as a ________ because it ________.

A) revenue; is the only source of business income for the government

B) bad thing; allows people to obtain the wrong kind of wealth

C) good thing; keeps the value of goods and services increasing

D) tax; redistributes goods and services from households and businesses to the government

E) tax; redistributes goods and services from the government to households and businesses

6) Inflation ________ the cost of holding money and ________ the after-tax real interest rate.

A) increases; increases

B) increases; decreases

C) decreases; increases

D) decreases; decreases

E) increases; does not change

7) Assume an economy begins with zero inflation, a 25 percent income tax rate, and a real interest rate of 4 percent. If inflation rises to 4 percent, the nominal interest rate becomes ________ percent and the after-tax real interest becomes ________ percent.

A) 0; 1

B) 8; 2

C) 8; 4

D) 6; 2

E) 8; 6

8) The “shoe-leather costs” of inflation are the costs from

A) higher prices for all goods, including necessities such as shoes.

B) the government taking a higher percentage of interest income.

C) confusion as people lose track of real costs and benefits.

D) time spent trying to spend money quickly.

E) higher taxes due to higher inflation.

9) The ________ cost of inflation is the result of a(n) ________ in velocity and is so-named because of ________.

A) tax; decrease; the government collecting more tax revenue on all goods and services including basic items like shoes

B) shoe leather; increase; the higher prices for all goods and services including basic items like shoes

C) confusion; increase; the shoe leather that is wasted by people running around trying to spend money quickly

D) shoe leather; increase; the shoe leather that is wasted by people running around trying to spend money quickly

E) shoe leather; decrease; the shoe leather that is wasted in people running around trying to spend money quickly

10) Shoe-leather costs of inflation arise from the

A) increasing costs of apparel (clothes and shoes) as inflation rises.

B) increase of velocity as inflation rises.

C) decline in the use of money as a unit of account.

D) increasing costs of agricultural products as inflation rises.

E) confusion that results from higher inflation.

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July 1, 2023

Padlet https://padlet.com/ is based on cards and you can add images and maps

LucidSpakr or Miro https://miro.com/ and JamBoard https://jamboard.google.com/?pli=1 allow you to do a sort of notes, images etc into categories

1. Final Test Plan:

What do you want to measure with your testing? (Note – how good is my interface is not a specific enough question!)
What tasks will you ask the user to perform so that you will be able to measure participant’s responses and help answer your questions?
Decide how you want the user to share their feedback. Will they:
think aloud, and/or
fill out a questionnaire, and/or
complete a post-test interviews, and/or

o all of the above.

Prepare an outline that includes:

What is the question you are asking? How can you measure this?
How the user test will be run,
Written instructions that you will read to the users, and
Any other materials (e.g. questionnaires, interview questions) that will be used during the session.

Check out the resources for usability testing

Krug has a range of pdf's & docs for downloading
User Focus provides a plan on a page approach which you will need to use in your Deliverable 3 - document here

According to the International Standards Organisation ISO 9241-11, usability is defined as the:

'extent to which a product can be used by specified users to achieve specified goals with effectiveness,

efficiency and satisfaction in a specified context of use.'

. View the Usability Standard and explore the definitions section.

What are the elements of usability and
How are they defined?

2. Scan the brief article by Bevan (2009) International Standards for Usability Should Be More Widely Used

discover some of the standards that inform software usability
what are the problems and benefits of implementing standards.
a brief summary of Information technology standards are outlined by the US National Institute of Standards and Technology (NIST): Project: Usability Standards

3. Finally, a Common Industry Format has been developed to report usability issues in software:

Online Testing

Tools exist online for testing eg

Usability Hub and Optimizely

What does the SUS do and how could it be useful to your prototype?
What aspect of usability does it focus on?
Would this tool be useful for Deliverable 4? How?
Would you need to adapt the tool to your context of use?
What advice does the academic article provide regarding adapting the tool?

sing the DECIDE framework plan your user study. Write up using the plan on a page template below.

1. As a group, decide what aspect of your prototype would benefit from an alternative design. Create a paper or functional wireframe prototype for this.

2. Check if you covered Behavioural and Attitudinal aspects, and use Quantitative and Qualitative

3. What data is Subjective, what is Objective? What is the importance of each?

3. Carry out a pilot study as a team to test your plan (this should include the alternative screens)

4. As a team adjust your plan (if necessary based on your pilot study experience)

Use tools like the System Usability Scale to measure feedback and write up template

5. All team members to conduct a user study or test. (upload individual studies to the submission discussion board or OneDrive

6. Look at user testing online to collect good data for you analysis

https://app.usabilityhub.com/ or https://www.optimizely.com/anz/

7. Collate the results from all user studies and create a set of findings from your research

8. Analyse Results: Taking your qualitative and quantitative data, analyse to features of your design and what should be improved.

9. Submit to Learnline:

your plan and prototype deadlines
your individual user studies (including video links)
your team analysis, and a list of changes to be implemented

As a team

What did you want to find out about your prototype from users? Make sense of your data.

1. Assemble all the data you individually collected for Deliverable #4. This should include your observation notes, videos, photos and any other information documented during the test.

2. Individually share your findings. As each member discusses what happened, the team leader should designate someone as scribe to keep notes of the findings.

3. Review your findings. What are the common themes emerging from the user testing?

4. As a group, decide:

what did your users think worked (functionality wise) with your prototype
what did your users think didnt work (functionality wise) with your prototype
was your second design more effective than the original ideas you have
what changes need to be made to the prototype

5. Write up your findings. This should include your group's summary and the individual work from each member acknowledged

7. Submit user results to the discussion board on Learnline if you want ideas for analysis

Adding Visuals

Collating results so farOur results so far

The visual aspect of your app should match what you have learnt about the users. Be inclusive of different users and their preferences, consider visual disabilities and stay with the design pattern you have developed
You will need to put sample videos where you have videos, and make sure you have sample text where that would be needed. The users being tested need to understand what you see as the information (visual and written) that will be on each page.
Read some references on the approach to visual design . A visual designer is an extension of graphical design considering user interface aspects.
Focus on the five principles of visual design:
1. Scale
2. Visual hierarchy
3. Balance
4. Contrast
5. Gestalt
6. Read what these refer to.