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14 Cards in this Set
- Front
- Back
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The consumers expenditure survey measures |
Households spending patterns |
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The reference base period that the BLS uses to measure the CPI is |
1982-1984 |
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The Consumer Price Index measures the average of the prices paid by urban consumers for a ________ of consumer goods and services. |
Random Selection |
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4) In 2010, the reference base period for the CPI for the nation of Webot, a typical consumer spent $30 on potatoes and $150 on steak. If the price of steak is $15 and the price of potatoes is $1 then there are ________ units of steak and ________ units of potatoes in the CPI market basket. |
10 & 30 |
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5) If the cost of the CPI market basket at current period prices is $275 and the cost of the CPI market basket at base period prices is $350, the CPI is |
79 |
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6) Consumers in a country buy only two goods, pens and CDs. The prices and quantities purchased by urban households are in the table above. If 2009 is the reference base year, the cost of the CPI market basket in the base year is |
$3,400 |
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7) Consumers in a country buy only two goods, sneakers and manicures. The prices and quantities purchased by urban households are in the table above. The reference base year is 2009. The inflation rate between 2009 and 2010 is |
10.3% |
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8) Suppose in year 1 the CPI is 90, in year 2 the CPI is 100, and in year 3 the CPI is 110. Then, inflation is |
11% between years 1 and 2 |
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9) Which of the following makes the Consumer Price Index a less accurate measure of the cost of living? |
ii. the existence of a new goods bias in the calculation of the CPi iii. the existence of a quality change bias in the calculation of the CPI |
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10) The outlet substitution bias is most likely to put ________ and so ________ the inflation rate. |
-An upward bias into the CPI -Overstate |
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11) When we compare the records of the CPI and the PCE price index over time, the |
CPI tends to exceed the PCE price index |
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12) A consequence of the CPI bias is that it |
distorts private contracts. |
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13) The GDP price index can be interpreted as |
(nominal GDP ÷ real GDP) × 100. |
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14) If the nominal wage is $30 in 2009 and the CPI is 202 in 2009, then the real wage in 1982-1984 dollars |
is $14.85 |
