Practice these TOEFL iBT listening tests to help you score high in the TOEFL Listening Section. Check the correct answers and audio transcripts below. This video is in the series of NEW TOEFL iBT Preparation: https://www.youtube.com/playlist?list=PL2jvSGmpWX1UMjbc8Onae7i-R6Z8VcPbU.
Questions 6 through 10. Listen to a talk given by an economics instructor.
One of the major problems in our economy is inflation, a situation in which prices are going up faster than wages. Thus, a person has to work more hours to pay for the same items.
For example, let's say that this year a loaf of bread costs $1.00 and the average salary in the United States is $10.00 per hour. That means a person could earn enough money to buy a loaf of bread in one tenth of an hour, or six minutes. Then, halfway through the year, the price of the bread goes up to $1.25, while wages stay the same. That means that a person now has to work one-eighth of an hour—seven and a half minutes—to buy the same loaf of bread.
Now let’s say that at the end of the year, wages go up to $11.00 per hour, but the price of bread goes up to $1.50. Now a person has to work more than one-seventh of an hour—over eight minutes—to buy the same loaf of bread. As you can see, if more and more work time is spent earning money to buy loaves of bread employees will have less money left over to buy other things. Inflation means that the same money buys fewer things, and everybody's standard of living goes down, even if salaries are going up.
Some kinds of inflation are worse than others. Moderate inflation does not distort relative prices or incomes severely. Galloping inflation happens rapidly, say at a rate of 100 percent or more within a year. And then there is hyperinflation— inflation so severe that people try to get rid of their currency before prices rise further and render the money worthless. Times of hyperinflation are usually characterized by social and political turmoil.
Correct Answers:
6. B
7. B
8. D
9-10. People try to get rid of their currency. - Hyperinflation
Incomes and relative prices rise slightly. - Moderate inflation
Inflation occurs at a rate of 100 percent in a year. - Galloping inflation
There is social and political disorder. - Hyperinflation
