Midterm Macro

Chapter 24
Câu hỏi 1
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Đặt cờ
Đoạn văn câu hỏi
Babe Ruth's 2000 salary was $80,000. The price index for 2000 is 15.2 and the price index for 2020 is 177.
Ruth's 2000 salary was equivalent to a 2020 salary of about
Select one:
a.
$9,300,000.
b.
$1,930,000.
c.
$93,000.
d.
$930,000.
Câu hỏi 2
Hoàn thành
Đặt cờ
The CPI is a measure of the overall cost of
Select one:
a.
goods and services bought by a typical consumer.
b.
goods and services produced in the economy.
c.
inputs purchased by a typical producer.
d.
stocks on the New York Stock Exchange.
Câu hỏi 3
Hoàn thành
Đặt cờ
The price of imported athletic shoes produced by a U.S. company operating in Thailand increases. By itself
what effect will this change have on the GDP deflator and on the CPI?
Select one:
a.
The GDP deflator will be unaffected and the CPI will increase.
b.
The GDP deflator and the CPI will both increase.
c.
The GDP deflator will increase and the CPI will be unaffected.
d.
The GDP deflator and the CPI will both be unaffected.
Câu hỏi 4
Hoàn thành
Đặt cờ
Use the table below to answer the following questions.
Table 11-2
year price of pork price of corn
2019 $20 $20
2020 $20 $30
Refer to Table 11-2. Suppose that the basket of goods in the CPI consisted of 3 units of pork and 2 units
of corn. What is the inflation rate for 2020?
Select one:
a.
20 percent
b.
15 percent
c.
33.3 percent
d.
25 percent
Câu hỏi 5
Hoàn thành
Đặt cờ
The CPI is calculated
Select one:
a.
quarterly.
b.
yearly.
c.
weekly.
d.
monthly.
Câu hỏi 6
Hoàn thành
Đặt cờ
The price index in 2019 is 120, and in 2020 the price index is 127.2. What is the inflation rate?
Select one:
a.
5 percent
b.
8 percent
c.
The inflation rate is impossible to determine without knowing the base year.
d.
6 percent
Câu hỏi 7
Hoàn thành
Đặt cờ
The price index is 180 in one year and 210 in the next. What was the inflation rate?
Select one:
a.
None of the above are correct.
b.
14.3 percent
c.
16.7 percent
d.
11.1 percent
Câu hỏi 8
Hoàn thành
Đặt cờ
If the nominal interest rate is 8 percent and rate of inflation is 3 percent, the real interest rate is
Select one:
a.
5 percent.
b.
11 percent.
c.
24 percent.
d.
3.75 percent.
Câu hỏi 9
Hoàn thành
Đặt cờ
In Japan in 2000 nominal interest rates were 1.5 percent and the inflation rate was -0.5 percent. The real
interest rate was
Select one:
a.
2 percent.
b.
-1 percent.
c.
1 percent.
d.
-2 percent.
Câu hỏi 10
Hoàn thành
Đặt cờ
For some racquet sports there have been increases in the size of the racquets and the methods and
materials used for making them make have improved. What problem in the construction of the CPI is this
most relevant to?
Select one:
a.
introduction of new goods
b.
income bias
c.
unmeasured quality change
d.
substitution bias
Câu hỏi 11
Hoàn thành
Đặt cờ
The basket of goods in the consumer price index changes
Select one:
a.
occasionally while the basket of goods used to compute the GDP deflator changes yearly.
b.
yearly while the basket of goods used to compute the GDP deflator changes occasionally.
c.
occasionally, as does the basket of goods used to compute the GDP deflator.
d.
yearly, as does the basket of goods used to compute the GDP deflator.
Câu hỏi 12
Hoàn thành
Đặt cờ
Which change in the price index shows the greatest rate of inflation: 80 to 100, 100 to 120, or 150 to 170?
Select one:
a.
All changes show the same rate of inflation.
b.
150 to 170
c.
80 to 100
d.
100 to 120
Câu hỏi 13
Hoàn thành
Đặt cờ
The steps involved in calculating the consumer price index include, in order:
Select one:
a.
choose a base year, fix the basket, compute the inflation rate, compute the basket's cost, and compute
the index.
b.
fix the basket, find the prices, compute the basket's cost, choose a base year and compute the index.
c.
choose a base year, find the prices, fix the basket, compute the basket's cost, and compute the index.
d.
fix the basket, find the prices, compute the inflation rate, choose a base year and compute the index.
Câu hỏi 14
Hoàn thành
Đặt cờ
Mavis Corporation has an agreement with its workers to completely index the wage of its employees to
inflation in the CPI. Mavis currently pays its production line workers $7.50 an hour and is scheduled to
index their wages today. If the CPI is currently about 130 and was 120 a year ago Mavis should increase
the hourly wages of its workers by about
Select one:
a.
$0.10.
b.
$0.65.
c.
$0.075.
d.
$0.58.
Câu hỏi 15
Hoàn thành
Đặt cờ
Recent changes in methods used to compute the CPI have
Select one:
a.
reduced the downward bias in the CPI inflation rate.
b.
increased the downward bias in the CPI inflation rate.
c.
increased the upward bias in the CPI inflation rate.
d.
reduced the upward bias in the CPI inflation rate.
Câu hỏi 16
Hoàn thành
Đặt cờ
A COLA automatically raises the wage rate when
Select one:
a.
the consumer price index increases.
b.
GDP increases.
c.
taxes increase.
d.
the consumer price index is announced.
Câu hỏi 17
Hoàn thành
Đặt cờ
Consumers begin purchasing houses incorporating steel studs instead of wooden studs after the price of
lumber increases. This situation best represents which problem in the construction of the CPI?
Select one:
a.
substitution bias
b.
income bias
c.
introduction of new goods
d.
unmeasured quality change
Câu hỏi 18
Hoàn thành
Đặt cờ
Suppose that the real interest rate was 3 percent and the inflation rate was 1 percent.
Select one:
a.
The dollar value of savings increased at 2 percent, and the value of savings measured in goods increased
at 3 percent.
b.
at 3 percent.
c.
at 1 percent.
d.
at 2 percent.
Câu hỏi 19
Hoàn thành
Đặt cờ
For the CPI, the base year is
Select one:
a.
the benchmark against which other years are compared, and it changes occasionally.
b.
always 1989.
c.
the benchmark against which other years are compared, and it changes each year.
d.
the year the CPI first appeared.
Câu hỏi 20
Hoàn thành
Đặt cờ
By itself a reduction in the price of large tractors imported into the United States from Russia will
Select one:
a.
make the GDP deflator decrease and the consumer price index to increase.
b.
will not change either the GDP deflator or the consumer price index.
c.
make the GDP deflator increase, but the consumer price index is unchanged.
d.
will increase both the GDP deflator and the consumer price index.
Câu hỏi 21
Hoàn thành
Đặt cờ
The real interest rate tells you
Select one:
a.
how fast the number of dollars in your bank account rises over time.
b.
how fast the purchasing power of your bank account rises over time.
c.
the number of dollars in your bank account.
d.
the purchasing power of your bank account.
Câu hỏi 22
Hoàn thành
Đặt cờ
Which goods are supposed to be included in the CPI?
Select one:
a.
all the goods, but not the services, in the consumption component of the GDP accounts
b.
all goods and services that typical consumers buy
c.
all goods and services produced in the economy
d.
all goods and services in the consumption component of the GDP accounts
Câu hỏi 23
Hoàn thành
Đặt cờ
In 2008, OPEC succeeds in raising world oil prices by 300 percent. This price increase causes inventors to
look at alternative sources of fuel for internal-combustion engines. A hydrogen-powered engine is
developed which is cheaper to operate than gasoline engines. Which problem in the construction of the
CPI does this situation represent?
Select one:
a.
income bias and substitution bias
b.
substitution bias and introduction of new goods
c.
introduction of new goods and unmeasured quality change
d.
unmeasured quality change and new goods.
Câu hỏi 24
Hoàn thành
Đặt cờ
Suppose that in 2020, the producer price index increases by 2 percent. As a result, economists most likely
will predict that
Select one:
a.
the consumer price index will increase in the future.
b.
the exchange rate will increase in the future.
c.
GDP will increase in the next year.
d.
next year the producer price index will fall.
Câu hỏi 25
Hoàn thành
Đặt cờ
The price index is 320 in one year and 360 in the next. What was the inflation rate?
Select one:
a.
11.1 percent
b.
8 percent
c.
12.5 percent
d.
6.7 percent

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Chapter 24

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