Cost of living

High school (ages 12+)
People & Society

Name:

Date:

Step 1 · Read the article

Open the article and read it at the level above. Then answer the questions below in your own words.

https://smallwhale.org/articles/cost-of-living

Write what each word means, using the article.

Do not copy the article. Write two things you learned, the way you would explain them to a friend.

Answers below are taken from the article’s stored facts, so they match what the student read.

1. What does "cost of living" mean?It is the amount of money needed to keep a certain standard of life in a place at a time. It includes food, housing, health, and other things.
2. Why do prices for living change over time?Prices change because of things like inflation, interest rates, and how much people want to buy. When more people want houses, rents can go up.

Purchasing Power Parity (PPP): An economic theory that compares different countries' currencies through a market basket of goods and services.
Real Income: Income that has been adjusted for inflation, showing the actual amount of goods and services that can be bought.
Consumer Price Index (CPI): A measure that examines the weighted average of prices of a basket of consumer goods and services, used to calculate inflation.