Table 11-4 The table below pertains to Wrexington, an economy in which the typical consumer's basket consists of 20 pounds of meat and 10 toys. \[\begin{array} { | c | c | c } \text { Year } & \begin{array} { c } \text { Price of } \\ \text { Meat } \end{array} & \begin{array} { c } \text { Price of a } \\ \text { Tryy } \end{array} \\ \hline 2004 & \$ 3 \text { per pound } & \$ 2 \\ \hline 2005 & \$ 1 \text { per pound } & \$ 7 \\ \hline 2006 & \$ 4 \text { per pound } & \$ 5 \\ \hline \end{array}\] -Refer to Table 11-4. If the base year is 2004, then the CPI

A) increased from 2004 to 2005 and increased from 2005 to 2006. B) increased from 2004 to 2005 and decreased from 2005 to 2006. C) decreased from 2004 to 2005 and increased from 2005 to 2006. D) decreased from 2004 to 2005 and decreased from 2005 to 2006. A) increased from 2004 to 2005 and increased from 2005 to 2006. B) increased from 2004 to 2005 and decreased from 2005 to 2006. C) decreased from 2004 to 2005 and increased from 2005 to 2006. D) decreased from 2004 to 2005 and decreased from 2005 to 2006.

Table 11-6. The table below applies to an economy with only two goods - hamburgers and hot dogs. The fixed basket consists of 4 hamburgers and 8 hot dogs. \[\begin{array} { l c c } \hline \text { Year } & \text { Priee of hamburegers } & \text { Prife of hat doges } \\ \hline 2009 & \$ 5.00 & \$ 3.00 \\ 2010 & 5.50 & 3.30 \\ 2011 & 5.61 & 3.63 \\ \hline \end{array}\] -Refer to Table 11-6. Between 2010 and 2011, the cost of living increased by

A) 5.30 percent. B) 6.36 percent. C) 7.78 percent. D) We need to know the base year in order to answer this question. A) 5.30 percent. B) 6.36 percent. C) 7.78 percent. D) We need to know the base year in order to answer this question.

Exam 11: Measuring the Cost of Living

In 1949, Sycamore, Illinois built a hospital for about $500,000. In 1987, the county restored the courthouse for about $2.4 million. A price index for nonresidential construction was 14 in 1949, 92 in 1987, and 114.5 in 2000. According to these numbers, the hospital cost about

(Multiple Choice)

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Question 41

When the relative price of a good increases, consumers respond by buying

(Multiple Choice)

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Question 42

If the cost of apparel increases by 50 percent, then, other things the same, the CPI is likely to increase by about

(Multiple Choice)

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Question 43

Consider a small economy in which consumers buy only two goods: pretzels and cookies. In order to compute the consumer price index for this economy for two or more consecutive years, we assume that

(Multiple Choice)

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Question 44

Consternation Corporation has an agreement with its workers to index completely the wage of its employees using the CPI. Consternation Corporation currently pays its production line workers $8.00 an hour and is scheduled to index their wages today. If the CPI is currently 160 and was 128 a year ago, the firm should increase the hourly wages of its workers by

(Multiple Choice)

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Question 45

The CPI is a measure of the overall cost of the goods and services bought by

(Multiple Choice)

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Question 46

If the CPI was 108.00 in 1942 and is 336.96 today, then $10 in 1942 purchased the same amount of goods and services as

(Multiple Choice)

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Question 47

Suppose a basket of goods and services has been selected to calculate the CPI and 2002 has been chosen as the base year. In 2002, the basket's cost was $75.00; in 2004, the basket's cost was $79.50; and in 2006, the basket's cost was $85.86. The value of the CPI was

(Multiple Choice)

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(72)

Question 48

Which of the following statements is correct about the relationship between inflation and interest rates?

(Multiple Choice)

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Question 49

In a particular economy, the price index was 270 in 2005 and 300 in 2006. Which of the following statements is correct?

(Multiple Choice)

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Question 50

If the nominal interest rate is 5 percent and the inflation rate is 2 percent, then the real interest rate is 7 percent.

(True/False)

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Question 51

Many economists believe the bias in the CPI is now only about half as large as it once was.

(True/False)

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(86)

Question 52

Table 11-4 The table below pertains to Wrexington, an economy in which the typical consumer's basket consists of 20 pounds of meat and 10 toys. Year Price of Meat Price of a Tryy 2004 \ 3 per pound \ 2 2005 \ 1 per pound \ 7 2006 \ 4 per pound \ 5 -Refer to Table 11-4. If the base year is 2004, then the CPI

(Multiple Choice)

4.8/5

(78)

Question 53

Table 11-6. The table below applies to an economy with only two goods - hamburgers and hot dogs. The fixed basket consists of 4 hamburgers and 8 hot dogs. Year Priee of hamburegers Prife of hat doges 2009 \ 5.00 \ 3.00 2010 5.50 3.30 2011 5.61 3.63 -Refer to Table 11-6. Between 2010 and 2011, the cost of living increased by

(Multiple Choice)

4.9/5

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Question 54

Which is the most accurate statement about the GDP deflator and the consumer price index?

(Multiple Choice)

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Question 55

The CPI is a measure of the overall cost of the goods and services bought by

(Multiple Choice)

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Question 56

Elizabeth just received her Ph.D. in economics and has two competing job offers. The first is in Washington, D.C. and pays a salary of $200,000. She has a similar job offer in Austin, TX that pays $90,000. Which pair of CPIs would make the two salaries have the same purchasing power?

(Multiple Choice)

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Question 57

Every unit of good x that is produced in the United States is exported to other countries. An increase in the price of good x shows up

(Multiple Choice)

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Question 58

In an imaginary economy, consumers buy only sandwiches and magazines. The fixed basket consists of 20 sandwiches and 30 magazines. In 2006, a sandwich cost $4 and a magazine cost $2. In 2007, a sandwich cost $5. The base year is 2006. If the consumer price index in 2007 was 125, then how much did a magazine cost in 2007?

(Multiple Choice)

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Question 59

Which of the following is not a widely acknowledged problem with using the CPI as a measure of the cost of living?

(Multiple Choice)

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Question 60

Showing 41 - 60 of 436

In 1949, Sycamore, Illinois built a hospital for about $500,000. In 1987, the county restored the courthouse for about $2.4 million. A price index for nonresidential construction was 14 in 1949, 92 in 1987, and 114.5 in 2000. According to these numbers, the hospital cost about

When the relative price of a good increases, consumers respond by buying

If the cost of apparel increases by 50 percent, then, other things the same, the CPI is likely to increase by about

Consider a small economy in which consumers buy only two goods: pretzels and cookies. In order to compute the consumer price index for this economy for two or more consecutive years, we assume that

The CPI is a measure of the overall cost of the goods and services bought by

If the CPI was 108.00 in 1942 and is 336.96 today, then $10 in 1942 purchased the same amount of goods and services as

Suppose a basket of goods and services has been selected to calculate the CPI and 2002 has been chosen as the base year. In 2002, the basket's cost was $75.00; in 2004, the basket's cost was $79.50; and in 2006, the basket's cost was $85.86. The value of the CPI was

Which of the following statements is correct about the relationship between inflation and interest rates?

In a particular economy, the price index was 270 in 2005 and 300 in 2006. Which of the following statements is correct?

If the nominal interest rate is 5 percent and the inflation rate is 2 percent, then the real interest rate is 7 percent.

Many economists believe the bias in the CPI is now only about half as large as it once was.

Which is the most accurate statement about the GDP deflator and the consumer price index?

The CPI is a measure of the overall cost of the goods and services bought by

Elizabeth just received her Ph.D. in economics and has two competing job offers. The first is in Washington, D.C. and pays a salary of $200,000. She has a similar job offer in Austin, TX that pays $90,000. Which pair of CPIs would make the two salaries have the same purchasing power?

Every unit of good x that is produced in the United States is exported to other countries. An increase in the price of good x shows up

Which of the following is not a widely acknowledged problem with using the CPI as a measure of the cost of living?

Ten Principles of Economics

Thinking Like an Economist

Interdependence and the Gains From Trade

The Market Forces of Supply and Demand

Elasticity and Its Application

Supply, Demand, and Government Policies

Consumers, Producers, and the Efficiency of Markets

Application: The Costs of Taxation

Application: International Trade

Measuring a Nations Income

Production and Growth

Saving, Investment, and the Financial System

The Basic Tools of Finance

Unemployment

The Monetary System

Money Growth and Inflation

Open-Economy Macroeconomic Models

A Macroeconomic Theory of the Open Economy

Aggregate Demand and Aggregate Supply

The Influence of Monetary and Fiscal Policy on Aggregate Demand

The Short-Run Trade-Off Between Inflation and Unemployment

Six Debates Over Macroeconomic Policy

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