Consumer Price Index
The price index was 120 in 2012 and 126 in 2013. What was the inflation rate? a) 5.0% b) 6.0% c) 7.2% d) 105%
a) 5.0%
Table 24-2 If 2013 is the base year, then CPI for 2012 was a) 95.7 b) 100.0 c) 90.0 d) 213.6
a) 95.7
In the calculation of the CPI, books are given greater weight than magazines if a) consumers buy more books than magazines b) the price of books is higher than the price of magazines c) it cost more to produce books than it cost to produce magazines d) book are more-readily available than magazines to the typical consumer
a) consumers buy more books than magazines
For any given year, the CPI is the price of the basket of goods and services in the a) given year divided by the price of the basket in the base year, then multiplied by 100 b) given your divided by the price of the basket in the previous year, the multiplied by 100 c) base year divided by the price of the basket in the given year, then multiplied by 100 d) previous year divided by the price of the basket in a given year, then multiplied by 100
a) given year divided by the price of the basket in the base year, then multiplied by 100
In calculating the CPI, a fixed basket of goods and services is used. The quantities of the goods and services in the fixed basket are determined by a) surveying consumers b) surveying sellers of the goods and services c) working backward from the rate of inflation to arrive at imputed values for those quantities d) arbitrary choices made by federal government employees
a) surveying consumers
Table 25-2 The table below pertains to Pieway, and economy in which the typical consumer's basket consist of 15 bushels of peaches and 10 bushels of pecans. Year | Price of | Price of | Peaches | Pecans 2012 | $11 per bushel | $6 2013 | $9 per bushel | $10 The cost of the basket in 2012 was a) $200 b) $225 c) $235 d) $212.50
b) $225
Table 24-2 If 2012 is the base year, then the CPI for 2012 was a) 95.7 b) 100.0 c) 90.0 d) 110.0
b) 100.0
Table 24-2 The cost of the basket in 2013 was a) $200 b) $225 c) $235 d) $237.5
c) $235
Suppose a basket of goods and services has been selected to calculate the CPI and 2009 has been selected as the base year. In 2007, the basket's cost was $64; in 2009, the basket's cost was $68; and in 2011, the basket's cost was $70. The value of the CPI in 2011 was a) 97.14 b) 100.10 c) 102.94 d) 109.38
c) 102.94
Table 24-2 If 2012 is the base year, then CPI for 2013 was a) 95.7 b) 100.0 c) 104.4 d) 110.0
c) 104.4
Table 24-1 The table below list annual consumer price index and inflation rates for a country over the period 2005-2010. Assume the year 2005 is used as the base year. year | consumer | inflation rate | price index | 2005 | 100 | - 2006 | 115 | B 2007 | 125 | C 2008 | 140 | D 2009 | A | 10% 2010 | 160 | E What belongs in space C? a) 120 b) 25% c) 8.7% d) 12%
c) 8.7%
The CPI is a measure of the overall cost of the goods and services bought by a) a typical consumer, and the CPI is computed and reported by the Department of the Treasury b) typical consumers and typical business firms, and the CPI is computed and reported by the Department of the Treasury c) a typical consumer, and the CPI is computed and reported by the Bureau of Labor Statistics d) typical consumers and typical business firms, and the CPI is computed and reported by the Bureau of Labor Statistics
c) a typical consumer, and the CPI is computed and reported by the Bureau of Labor Statistics
Reports on the current consumer price index are released every a) quarter b) two weeks c) month d) week
c) month
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 a) the percentage change in the price of pretzels is equal to the percentage change in the price of cookies from year to year b) the number pretzels bought by the typical consumer is equal to the number of cookies bought by the typical consumer in each year c) neither the number of pretzels nor the number of cookies bought by the typical consumer changes from year to year d) neither the price of pretzels nor the price of cookies changes from year to year
c) neither the number of pretzels nor the number of cookies bought by the typical consumer changes from year to year
Suppose a basket of goods and services has been selected to calculate the CPI and 2012 has been chosen as the base year. In 2012, the basket's cost was $80.00; in 2013, the basket's cost was $84; and in 2014, the basket's cost was $87.60. The value of the CPI was a) 100 in 2012 b) 105 in 2013 c) 109.5 in 2014 d) all of the above are correct
d) all of the above are correct