a.
24.7 percent.
b.
54.0 percent.
c.
32.8 percent.
d.
38.0 percent.
Table 24-4
The table below pertains to Studious, an economy in which the typical consumer’s basket consists of 5 books and 10
calculators.
Year
Price of a
Calculator
2012
$9
2013
$11
2014
$12
94. Refer to Table 24–4. The cost of the basket in 2012 was
a.
$32.
b.
$200.
c.
$210.
d.
$247.5.
95. Refer to Table 24–4. The cost of the basket
a.
increased from 2012 to 2013 and increased from 2013 to 2014.
b.
increased from 2012 to 2013 and decreased from 2013 to 2014.
c.
decreased from 2012 to 2013 and increased from 2013 to 2014.
d.
decreased from 2012 to 2013 and decreased from 2013 to 2014.
96. Refer to Table 24–4. The cost of the basket
a.
increased by $8 from 2012 to 2013.
b.
increased by $41 from 2012 to 2013.
c.
increased by $50 from 2012 to 2013.
d.
increased by $60 from 2012 to 2013.
97. Refer to Table 24–4. If 2012 is the base year, then the consumer price index was
a.
100 in 2012, 123.8 in 2013, and 133.3 in 2014.
b.
100 in 2012, 124.2 in 2013, and 133.3 in 2014.
c.
210 in 2012, 260 in 2013, and 280 in 2014.
d.
100 in 2012, 150 in 2013, and 170 in 2014.
98. Refer to Table 24–4. If 2013 is the base year, then the consumer price index was
a.
80.8 in 2012, 100 in 2013, and 107.7 in 2014.
b.
80.5 in 2012, 100 in 2013, and 107.3 in 2014.
c.
247.5 in 2012, 307.5 in 2013, and 330 in 2014.
d.
210 in 2012, 260 in 2013, and 280 in 2014.
99. Refer to Table 24–4. If 2014 is the base year, then the consumer price index was
a.
75 in 2012, 92.8 in 2013, and 100 in 2014.
b.
75 in 2012, 93.2 in 2013, and 100 in 2014.
c.
247.5 in 2012, 307.5 in 2013, and 330 in 2014.
d.
210 in 2012, 260 in 2013, and 280 in 2014.
100. Refer to Table 24–4. The inflation rate was
a.
24.3 percent in 2013 and 22.5 percent in 2014.
b.
23.8 percent in 2013 and 9.5 percent in 2014.
c.
23.8 percent in 2013 and 7.7 percent in 2014.
d.
24.3 percent in 2013 and 7.3 percent in 2014.
Table 24-5
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
Toy
2004
$3 per pound
$2
2005
$1 per pound
$7
2006
$4 per pound
$5
101. Refer to Table 24–5. The cost of the basket in 2006 was
a.
$9.
b.
$130.
c.
$140.
d.
$270.
102. Refer to Table 24–5. The cost of the basket
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.
103. Refer to Table 24–5. The cost of the basket
a.
decreased by $2 from 2004 to 2005.
b.
increased by $3 from 2004 to 2005.
c.
increased by $7 from 2004 to 2005.
d.
increased by $10 from 2004 to 2005.
104. Refer to Table 24–5. If the base year is 2004, then the CPI in 2004 was
a.
0.
b.
1.
c.
80.
d.
100.
105. Refer to Table 24–5. If the base year is 2004, then the CPI in 2005 was
a.
88.9.
b.
90.
c.
100.
d.
112.5.
106. Refer to Table 24–5. 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.
107. Refer to Table 24–5. If the base year is 2006, 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.
108. Refer to Table 24–5. If the base year is 2004, then the inflation rate in 2006 was
a.
44.4%.
b.
50%.
c.
62.5%.
d.
80%.
109. Refer to Table 24–5. If the base year is 2006, then the inflation rate in 2005 was
a.
-44.5%.
b.
-30.8%.
c.
7.7%.
d.
12.5%.
110. Refer to Table 24–5. The inflation rate was
a.
negative in 2005 and negative in 2006.
b.
negative in 2005 and positive in 2006.
c.
positive in 2005 and negative in 2006.
d.
positive in 2005 and positive in 2006.
Table 24-6
The table below pertains to Napandsnack, an economy in which the typical consumer’s basket consists of 2 pillows and
15 hotdogs.
Year
Price of a
Pillow
Price of a
Hotdog
2009
$40
$3
2010
$45
$4
2011
$50
$3
111. Refer to Table 24-6. The cost of the basket
a.
increased from 2009 to 2010 and increased from 2010 to 2011.
b.
increased from 2009 to 2010 and decreased from 2010 to 2011.
c.
decreased from 2009 to 2010 and increased from 2010 to 2011.
d.
decreased from 2009 to 2010 and decreased from 2010 to 2011.
112. Refer to Table 24-6. If the base year is 2009, then the consumer price index was
a.
100 in 2009, 115 in 2010, and 116 in 2011.
b.
100 in 2009, 115 in 2010, and 135 in 2011.
c.
100 in 2009, 120 in 2010, and 116 in 2011.
d.
120 in 2009, 125 in 2010, and 135 in 2011.
113. Refer to Table 24-6. If the base year is 2010, then the consumer price index was
a.
83.33 in 2009, 100.00 in 2010, and 96.67 in 2011.
b.
85.56 in 2009, 100.00 in 2010, and 102.22 in 2011.
c.
85.56 in 2009, 100.00 in 2010, and 96.67 in 2011.
d.
92.22 in 2009, 99.00 in 2010, and 95.22 in 2011.
114. Refer to Table 24–6. If the base year is 2011, then the CPI
a.
increased from 2009 to 2010 and increased from 2010 to 2011.
b.
increased from 2009 to 2010 and decreased from 2010 to 2011.
c.
decreased from 2009 to 2010 and increased from 2010 to 2011.
d.
decreased from 2009 to 2010 and decreased from 2010 to 2011.
115. Refer to Table 24-6. If the base year is 2011, then the consumer price index was
a.
125.0 in 2009, 150.0 in 2010, and 145.0 in 2011.
b.
86.2 in 2009, 96.7 in 2010, and 100.0 in 2011.
c.
86.2 in 2009, 103.4 in 2010, and 100.0 in 2011.
d.
124.1 in 2009, 103.4 in 2010, and 100.0 in 2011.
116. Refer to Table 24-6. If the base year is 2009, then the economy’s inflation rate in 2010 is
a.
20 percent.
b.
25 percent.
c.
30 percent.
d.
120 percent.
117. Refer to Table 24-6. If the base year is 2010, then the economy’s inflation rate in 2010 was
a.
10.5 percent.
b.
15.0 percent.
c.
20.0 percent.
d.
25.00 percent.
118. Refer to Table 24-6. If the base year is 2011, then the economy’s inflation rate in 2011 was
a.
-5.0 percent.
b.
-3.3 percent.
c.
3.3 percent.
d.
16.0 percent.
Table 24–7. 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
Price of hamburgers
Price of hot dogs
2009
$5.00
$3.00
2010
5.50
3.30
2011
5.61
3.63
119. Refer to Table 24-7. If the base year is 2009, then the consumer price index is
a.
100 in 2009, 109 in 2010, and 115 in 2011.
b.
100 in 2009, 110 in 2010, and 117 in 2011.
c.
110 in 2009, 121 in 2010, and 128.26 in 2011.
d.
44 in 2009, 48.4 in 2010, and 51.48 in 2011.
120. Refer to Table 24-7. If the base year is 2009, then the economy’s inflation rate in 2010 is
a.
8 percent.
b.
10 percent.
c.
10.91 percent.
d.
11.11 percent.
121. Refer to Table 24-7. If the base year is 2009, then the economy’s inflation rate is
a.
10 percent in 2010 and 6.36 percent in 2011.
b.
10 percent in 2010 and 17 percent in 2011.
c.
9.2 percent in 2010 and 6 percent in 2011.
d.
8.22 percent in 2010 and 5 percent in 2011.
122. Refer to Table 24-7. If the base year is 2010, then the consumer price index is
a.
100 in 2009, 109 in 2010, and 115 in 2011.
b.
95.90 in 2009, 100 in 2010, and 107.44 in 2011.
c.
90.91 in 2009, 100 in 2010, and 106.36 in 2011.
d.
88.82 in 2009, 100 in 2010, and 107.44 in 2011.
123. Refer to Table 24-7. If the base year is 2010, then the economy’s inflation rate in 2010 is
a.
8 percent.
b.
10 percent.
c.
10.91 percent.
d.
11.11 percent.
124. Refer to Table 24-7. If the base year is 2010, then the economy’s inflation rate is
a.
2 percent in 2010 and 7 percent in 2011.
b.
4.5 percent in 2010 and 5.2 percent in 2011.
c.
9 percent in 2010 and 5.5 percent in 2011.
d.
10 percent in 2010 and 6.36 percent in 2011.
125. Refer to Table 24-7. Which of the following scenarios is consistent with this statement? “The rate of inflation was
23.75 percent for 2011.”
a.
The price of a hot dog was $2.44 rather than $3.30 in 2010, with other prices in the table remaining fixed.
b.
The price of a hot dog was $4.22 rather than $3.63 in 2011, with other prices in the table remaining fixed..
c.
The price of a hamburger was $3.80 rather than $5.50 in 2010, with other prices in the table remaining fixed.
d.
The price of a hamburger was $6.60 rather than $5.61 in 2011, with other prices in the table remaining fixed.
126. Refer to Table 24-7. Which of the following scenarios is consistent with this statement? “The cost of living
increased by 25 percent between 2009 and 2011.”
a.
The price of a hot dog was $2.24 rather than $3.00 in 2009, with other prices in the table remaining fixed.
b.
The price of a hot dog was $4.07 rather than $3.63 in 2011, with other prices in the table remaining fixed..
c.
The price of a hamburger was $4.24 rather than $5.00 in 2009, with other prices in the table remaining fixed.
d.
The price of a hamburger was $5.96 rather than $5.61 in 2011, with other prices in the table remaining fixed.
127. Refer to Table 24-7. 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.
128. Refer to Table 24-7. Between 2009 and 2011, the cost of living increased by
a.
6 percent.
b.
19 percent.
c.
14 percent.
d.
17 percent.
Table 24-8
The table below relates to the economy of Mainland, where the typical consumer’s market basket consists of 2 televisions
and 300 hamburgers.
Year
Price of a television
Price of a hamburger
2013
$600
$2
2014
$550
$3
2015
$500
$2
129. Refer to Table 24-8. The cost of the basket
a.
increased from 2013 to 2014 and increased from 2014 to 2015.
b.
increased from 2013 to 2014 and decreased from 2014 to 2015.
c.
decreased from 2013 to 2014 and increased from 2014 to 2015.
d.
decreased from 2013 to 2014 and decreased from 2014 to 2015.
130. Refer to Table 24-8. If the base year is 2013, then the consumer price index was
a.
80 in 2013, 100 in 2014, and 60 in 2015.
b.
100 in 2013, 300 in 2014, and –100 in 2015.
c.
180 in 2013, 200 in 2014, and 160 in 2015.
d.
100 in 2013, 111.1 in 2014, and 88.9 in 2015.
131. Refer to Table 24-8. If the base year is 2014, then the consumer price index was
a.
80 in 2013, 100 in 2014, and 60 in 2015.
b.
98 in 2013, 100 in 2014, and 96 in 2015.
c.
90 in 2013, 100 in 2014, and 80 in 2015.
d.
180 in 2013, 200 in 2014, and 160 in 2015.
132. Refer to Table 24-8. If the base year is 2013, then the economy’s inflation rate in 2014 is
a.
11.1 percent.
b.
200 percent.
c.
10 percent.
d.
90 percent.
133. Which of the following is not an example of a price index computed by the Bureau of Labor Statistics?
a.
the Los Angeles price index
b.
the energy price index
c.
the producer price index
d.
the stock price index
134. The producer price index measures the cost of a basket of goods and services
a.
typically produced in the economy.
b.
produced for a typical consumer.
c.
sold by producers.
d.
bought by firms.
135. The price index that measures the cost of a basket of goods and services bought by firms is called the
a.
industrial price index.
b.
producer price index.
c.
core price index.
d.
GDP deflator.
136. Changes in the producer price index are often thought to be useful in predicting changes in
a.
stock prices.
b.
the consumer price index.
c.
the unemployment rate.
d.
the rate of output of goods and services.
137. Suppose that in 2010, the producer price index increases by 1.5 percent. As a result, economists most likely will
predict that
a.
GDP will increase in 2011.
b.
the producer price index will increase by more than 1.5 percent in 2011.
c.
interest rates will decrease in the future.
d.
the consumer price index will increase in the future.
138. When constructing the consumer price index, the Bureau of Labor Statistics does not do which of the following?
a.
Try to include all the goods and services that the typical consumer buys.
b.
Try to weight the goods and services that the typical consumer buys according to how much consumers buy of
each item.
c.
Survey consumers to determine what the typical consumer buys.
d.
Survey sellers to determine what the typical consumer buys.
139. By far the largest category of goods and services in the CPI basket is
a.
housing.
b.
transportation.
c.
education & communication.
d.
food & beverages.