CPI

Question 1

consumer price index (CPI)

Answer 1

• measures changes in the price level of a market basket of consumer goods and services purchased by households
• statistical estimate constructed using the prices of a sample of representative items

Question 2

ex.

Answer 2

housing, food, transportation, entertainment

Question 3

CPI calculation

Answer 3

[(New prices - Original prices)/Original prices] * 100

Question 4

what does “Certeris Paribus” assume when calculating how people spend money?

Answer 4

the person has held the same job with the same amount of pay

Question 5

ceteris paribus means “all else being held equal”. this means that we assume what has remained unchanged

Answer 5

consumer income & prices

Question 6

CPI

Answer 6

(new spending - old spending)*average budget / old spending

Question 7

a census helps the CPI in what way

Answer 7

• purchasing history of citizens

- can see what percent of a person’s income

Question 8

what is the change in the CPI if the new price for transportation services is $100 and the old price was $80

Answer 8

25%

Question 9

consumer stands for

Answer 9

purchasers

Question 10

acronym for calculation of CPI

Answer 10

NOO

Question 11

census is given out by whom every ten years

Answer 11

government agencies

Question 12

it is calculated through which of the following methods

Answer 12

census