Question 1

The term inflation is used to describe a situation in which

Accepted Answer

A)  the overall level of prices in the economy is increasing. 
B)  incomes in the economy are increasing. 
C)  stock-market prices are rising. 
D)  the economy is growing rapidly. 
A)  the overall level of prices in the economy is increasing. 
B)  incomes in the economy are increasing. 
C)  stock-market prices are rising. 
D)  the economy is growing rapidly.

Question 2

If the CPI was 110 this year and 100 last year, then

Accepted Answer

A)  the cost of the CPI basket of goods and services increased by 10 percent this year. 
B)  the price level increased by 110 percent this year. 
C)  the inflation rate for this year was 10 percent higher than the inflation rate for last year. 
D)  All of the above are correct. 
A)  the cost of the CPI basket of goods and services increased by 10 percent this year. 
B)  the price level increased by 110 percent this year. 
C)  the inflation rate for this year was 10 percent higher than the inflation rate for last year. 
D)  All of the above are correct.

Question 3

Which entity within the U.S. government is responsible for computing and reporting the CPI?

Accepted Answer

A)  the Department of Commerce 
B)  the Department of Labor 
C)  the General Accounting Office 
D)  the Council of Economic Advisers 
A)  the Department of Commerce 
B)  the Department of Labor 
C)  the General Accounting Office 
D)  the Council of Economic Advisers

Question 4

In 1931 the price of a movie ticket was $0.25. The consumer price index was 15.2 in 1931, and 210 in 2008. Using 2008 prices, the real price of a movie in 1931 was

Accepted Answer

A)  $13.82. 
B)  $52.50. 
C)  $1.81. 
D)  $3.45. 
A)  $13.82. 
B)  $52.50. 
C)  $1.81. 
D)  $3.45.

Question 5

The second largest category, by relative importance, in the CPI calculation is

Accepted Answer

A)  housing. 
B)  apparel. 
C)  transportation. 
D)  medical care. 
A)  housing. 
B)  apparel. 
C)  transportation. 
D)  medical care.

The term inflation is used to describe a situation in which

If the CPI was 110 this year and 100 last year, then

Which entity within the U.S. government is responsible for computing and reporting the CPI?

In 1931 the price of a movie ticket was $0.25. The consumer price index was 15.2 in 1931, and 210 in 2008. Using 2008 prices, the real price of a movie in 1931 was

The second largest category, by relative importance, in the CPI calculation is

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

Externalities

Public Goods and Common Resources

The Costs of Production

Firms in Competitive Markets

Monopoly

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

Aggregate Demand and Aggregate Supply

The Influence of Monetary and Fiscal Policy on Aggregate Demand

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Exam 16: Measuring the Cost of Living

The term inflation is used to describe a situation in which

If the CPI was 110 this year and 100 last year, then

Which entity within the U.S. government is responsible for computing and reporting the CPI?

In 1931 the price of a movie ticket was $0.25. The consumer price index was 15.2 in 1931, and 210 in 2008. Using 2008 prices, the real price of a movie in 1931 was

The second largest category, by relative importance, in the CPI calculation is

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

Externalities

Public Goods and Common Resources

The Costs of Production

Firms in Competitive Markets

Monopoly

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

Aggregate Demand and Aggregate Supply

The Influence of Monetary and Fiscal Policy on Aggregate Demand

Filters