Week 4- Cost of Living problem set

Question 1

When box office receipts are NOT corrected for inflation-

Answer 1

Avatar is the most popular movie.

Question 2

GDP Deflator reflects current level of prices to-

Answer 2

Prices for all goods produced domestically per year.

Question 3

Consumer price index reflects prices for goods___

Answer 3

bought by consumers.

Question 4

CPI is calculated___by___

Answer 4

calculated “monthly” by “BLS”.

Question 5

Most accurate statement for CPI___

Answer 5

CPI compares price of a fixed basket of goods to price of the basket in the base year.

Question 6

Most accurate statement for GDP deflator___

Answer 6

Compares price of current good to price of the same good.

Question 7

CPI measures___

Answer 7

Overall cost of goods bought by a consumer.

Question 8

Economy’s inflation rate is the % increase in price index from___

Answer 8

Previous year.

Question 9

CPI gauge how much incomes must rise to maintain___

Answer 9

A constant standard of living.

Question 10

In the US, if price of imported oil rises, which causes price of gas and heating oil rise, then CPI___

Answer 10

Rises much more than GDP deflator.

Question 11

CPI is the measurement for___

Answer 11

Cost of living.

Question 12

CPI is used to turn___

Answer 12

Dollar figures into meaningful measures of purchasing power.

Question 13

When CPI rises, we spends___

Answer 13

More to maintain the same standard of living.

Question 14

When box office receipts are not corrected for inflation___

Answer 14

Gone w/ the Wind does not rank as one of the 50 most popular movies of all time.

Question 15

Changes in Producer Price Index are thought to be useful in___

Answer 15

Predicting changes in CPI.