ECON 202- CH.6 & 7 (QUIZ)

Human capital is

knowledge and skills that workers have acquired

Economist use the term inflation to describe a situation in which

the economy's overall price level is rising

Table 24-3: The cost of the basket in 2012 was

$116

Table 24-3: The cost of the basket in 2013 was

$154

Henri earned a salary of $50,000 in 2001 and $60,000 in 2012. The consumer price index was 177 in 2001 and 225 in 2012. Henri's 2001 salary in 2012 dollars is

$63,559.32

If the nominal interest rate is 6% and the rate of inflation 10%, then the real interest rate is

-4%

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

a typical consumer, and the CPI is computed and reported by the Bureau of Labor Statistics

There are large differences in the standard of living

across countries and within countries over time

Which of the following is higher in Mali than in the United Kingdom?

child mortality

Greg learns how to bake from his grandmother. This is an example of

human capital, but not technological knowledge.

Table 24-3: If 2012 is the base year, then the CPI for 2012 was

100.0

Suppose a basket of goods and services has been selected to calculate the CPI and 2012 has been selected as the base year. In 2012, the basket's cost was $50; in 2014, the basket's cost was $51; and in 2016, the basket's cost was $52. The value of the CPI in 2014 was

102.0

The price index was 120 in 2012 and 126 in 2013. What was the inflation rate?

5%

The consumer price index is used to

monitor changes in the cost of living over time

The inputs into production of goods and services that are provided by natures, such as land, rivers, and mineral deposits are called

natural resources

Productivity is the amount of goods and services

produced for each hour of worker's time. It is linked to a nation's economic policies

Samantha goes to the grocery store to make her monthly purchase of ginger ale. As she enters the soft drink section, she notices that the price of ginger ale has increase 15%, so she decides to buy some peppermint tea instead. To which problem in the construction of the CPI is this situation most relevant ?

substitution bias

Amount the following countries, which one has the highest level of real GDP per person but the lowest growth rate of real GDP per person over a very long period of time?

the United Kingdom

When computing the cost of the basket of goods and services purchased by a typical consumer, which of the following change from year to year ?

the price of goods and services

For some racquet sports, there have been increase in the size of the racquets; also, the methods and materials used for making racquets have improved. To which problem in the construction of the CPI is this situation most relevant?

unmeasured quality change