经济学原理对应练习24.docx
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经济学原理对应练习24
经济学原理对应练习--24
Chapter24
MeasuringtheCostofLiving
MultipleChoice
1.BabeRuth,thefamousbaseballplayer,earned$80,000in1931.Today,thebestbaseballplayerscanearnmorethan300timesasmuchasBabeRuthearnedin1931.However,pricesalsohaverisensince1931.Wecanconcludethat
a.thebestbaseballplayerstodayareabout300timesbetteroffthanBabeRuthwasin1931.
b.becausepriceshaverisenalso,thestandardoflivingofbaseballstarshasn'tchangedsince1931.
c.onecannotmakejudgmentsaboutchangesinthestandardoflivingbasedonchangesinpricesandchangesinincomes.
d.onecannotdeterminewhetherbaseballstarstodayenjoyahigherstandardoflivingthanBabeRuthdidin1931withoutadditionalinformationregardingincreasesinpricessince1931.
ANS:
DPTS:
1DIF:
2REF:
24-0
TOP:
Prices|StandardoflivingMSC:
Interpretive
2.Whentheconsumerpriceindexrises,thetypicalfamily
a.hastospendmoredollarstomaintainthesamestandardofliving.
b.canspendfewerdollarstomaintainthesamestandardofliving.
c.findsthatitsstandardoflivingisnotaffected.
d.canoffsettheeffectsofrisingpricesbysavingmore.
ANS:
APTS:
1DIF:
1REF:
24-0
TOP:
Consumerpriceindex|StandardoflivingMSC:
Interpretive
3.Theconsumerpriceindexisusedto
a.trackchangesinthelevelofwholesalepricesintheeconomy.
b.monitorchangesinthecostofliving.
c.monitorchangesinthelevelofrealGDP.
d.trackchangesinthestockmarket.
ANS:
BPTS:
1DIF:
1REF:
24-0
TOP:
ConsumerpriceindexMSC:
Interpretive
4.Theconsumerpriceindexisusedto
a.differentiategrossnationalproductfromnetnationalproduct.
b.turndollarfiguresintomeaningfulmeasuresofpurchasingpower.
c.characterizethetypesofgoodsandservicesthatconsumerspurchase.
d.measurethequantityofgoodsandservicesthattheeconomyproduces.
ANS:
BPTS:
1DIF:
1REF:
24-0
TOP:
ConsumerpriceindexMSC:
Interpretive
5.Theterminflationisusedtodescribeasituationinwhich
a.theoveralllevelofpricesintheeconomyisincreasing.
b.incomesintheeconomyareincreasing.
c.stock-marketpricesarerising.
d.theeconomyisgrowingrapidly.
ANS:
APTS:
1DIF:
1REF:
24-0
TOP:
InflationMSC:
Definitional
6.Economistsusetheterminflationtodescribeasituationinwhich
a.somepricesarerisingfasterthanothers.
b.theeconomy'soverallpricelevelisrising.
c.theeconomy'soverallpricelevelishigh,butnotnecessarilyrising.
d.theeconomy'soveralloutputofgoodsandservicesisrisingfasterthantheeconomy'soverallpricelevel.
ANS:
BPTS:
1DIF:
1REF:
24-0
TOP:
InflationMSC:
Definitional
7.Whentheoveralllevelofpricesintheeconomyisincreasing,wesaythattheeconomyisexperiencing
a.economicgrowth.
b.stagflation.
c.inflation.
d.deflation.
ANS:
CPTS:
1DIF:
1REF:
24-0
TOP:
InflationMSC:
Definitional
8.Theinflationrateisdefinedasthe
a.pricelevel.
b.changeinthepricelevelfromoneperiodtothenext.
c.percentagechangeinthepricelevelfromthepreviousperiod.
d.pricelevelminusthepricelevelfromthepreviousperiod.
ANS:
CPTS:
1DIF:
1REF:
24-0
TOP:
InflationrateMSC:
Definitional
9.Theeconomy'sinflationrateisthe
a.pricelevelinthecurrentperiod.
b.changeinthepricelevelfromthepreviousperiod.
c.changeinthegrossdomesticproductfromthepreviousperiod.
d.percentagechangeinthepricelevelfromthepreviousperiod.
ANS:
DPTS:
1DIF:
1REF:
24-0
TOP:
InflationrateMSC:
Definitional
10.TheCPIisameasureoftheoverallcostof
a.inputspurchasedbyatypicalproducer.
b.goodsandservicesboughtbyatypicalconsumer.
c.goodsandservicesproducedintheeconomy.
d.stocksontheNewYorkStockExchange.
ANS:
BPTS:
1DIF:
1REF:
24-1
TOP:
ConsumerpriceindexMSC:
Definitional
11.WhichofthefollowingagenciescalculatestheCPI?
a.theNationalPriceBoard
b.theDepartmentOfWeightandMeasurements
c.theBureauofLaborStatistics
d.theCongressionalBudgetOffice
ANS:
CPTS:
1DIF:
1REF:
24-1
TOP:
Consumerpriceindex|BureauofLaborStatisticsMSC:
Definitional
12.WhichentitywithintheU.S.governmentisresponsibleforcomputingandreportingtheconsumerpriceindex?
a.theDepartmentofCommerce
b.theDepartmentofLabor
c.theGeneralAccountingOffice
d.theCouncilofEconomicAdvisers
ANS:
BPTS:
1DIF:
1REF:
24-1
TOP:
ConsumerpriceindexMSC:
Definitional
13.TheCPIiscalculated
a.weekly.
b.monthly.
c.quarterly.
d.yearly.
ANS:
BPTS:
1DIF:
1REF:
24-1
TOP:
ConsumerpriceindexMSC:
Definitional
14.TheCPIiscalculated
a.monthlybytheDepartmentofCommerce.
b.monthlybytheBureauofLaborStatistics.
c.quarterlybytheDepartmentofCommerce.
d.quarterlybytheBureauofLaborStatistics.
ANS:
BPTS:
1DIF:
2REF:
24-1
TOP:
Consumerpriceindex|BureauofLaborStatisticsMSC:
Definitional
15.WhatbasketofgoodsisusedtoconstructtheCPI?
a.arandomsampleofallgoodsandservicesproducedintheeconomy
b.thegoodsandservicesthataretypicallyboughtbyconsumersasdeterminedbygovernmentsurveys
c.onlyfood,clothing,transportation,entertainment,andeducation
d.theleastexpensiveandthemostexpensivegoodsandservicesineachmajorcategoryofconsumerexpenditures
ANS:
BPTS:
1DIF:
1REF:
24-1
TOP:
ConsumerpriceindexMSC:
Definitional
16.InthecalculationoftheCPI,coffeeisgivengreaterweightthanteaif
a.consumersbuymorecoffeethantea.
b.thepriceofcoffeeishigherthanthepriceoftea.
c.itcostsmoretoproducecoffeethanitcoststoproducetea.
d.coffeeismorereadilyavailablethanisteatothetypicalconsumer.
ANS:
APTS:
1DIF:
2REF:
24-1
TOP:
ConsumerpriceindexMSC:
Definitional
17.IntheCPI,goodsandservicesareweightedaccordingto
a.howlongamarkethasexistedforeachgoodorservice.
b.theextenttowhicheachgoodorserviceisregardedbythegovernmentasanecessity.
c.howmuchconsumersbuyofeachgoodorservice.
d.thenumberoffirmsthatproduceandselleachgoodorservice.
ANS:
CPTS:
1DIF:
2REF:
24-1
TOP:
ConsumerpriceindexMSC:
Definitional
18.Thestepsinvolvedincalculatingtheconsumerpriceindex,inorder,areasfollows:
a.Chooseabaseyear,fixthebasket,computetheinflationrate,computethebasket'scost,andcomputetheindex.
b.Chooseabaseyear,findtheprices,fixthebasket,computethebasket'scost,andcomputetheindex.
c.Fixthebasket,findtheprices,computethebasket'scost,chooseabaseyearandcomputetheindex.
d.Fixthebasket,findtheprices,computetheinflationrate,chooseabaseyearandcomputetheindex.
ANS:
CPTS:
1DIF:
2REF:
24-1
TOP:
ConsumerpriceindexMSC:
Interpretive
Table24-1
Year
Peaches
Pecans
2005
$11perbushel
$6perbushel
2006
$9perbushel
$10perbushel
19.RefertoTable24-1.Supposethetypicalconsumerbasketconsistsof10bushelsofpeachesand15bushelsofpecans.Using2005asthebaseyear,theCPIfor2006is
a.100.
b.120.
c.200.
d.240.
ANS:
BPTS:
1DIF:
2REF:
24-1
TOP:
ConsumerpriceindexMSC:
Applicative
20.RefertoTable24-1.Supposethetypicalconsumerbasketconsistsof10bushelsofpeachesand15bushelsofpecans.Using2005asthebaseyear,whatwastheinflationratein2006?
a.20percent
b.16.7percent
c.10percent
d.8percent
ANS:
APTS:
1DIF:
2REF:
24-1
TOP:
InflationrateMSC:
Applicative
Table24-2
Year
Priceofpork
Priceofcorn
2005
$20
$12
2006
$25
$18
21.RefertoTable24-2.SupposethebasketofgoodsintheCPIconsistedof3unitsofporkand4unitsofcorn.Whatistheconsumerpriceindexfor2006ifthebaseyearis2005?
a.73.47
b.109.22
c.136.11
d.150.00
ANS:
CPTS:
1DIF:
2REF:
24-1
TOP:
ConsumerpriceindexMSC:
Applicative
22.RefertoTable24-2.SupposethebasketofgoodsintheCPIconsistedof3unitsofporkand4unitsofcorn.Whatistheinflationratefor2006ifthebaseyearis2005?
a.21.33percent
b.25.00percent
c.28.89percent
d.36.11percent
ANS:
DPTS:
1DIF:
2REF:
24-1
TOP:
InflationrateMSC:
Applicative
23.ThemarketbasketusedtocalculatetheCPIinAquiloniais4loavesofbread,6gallonsofmilk,2shirtsand2pants.In2005,breadcost$1.00perloaf,milkcost$1.50pergallon,shirtscost$6.00eachandpantscost$10.00perpair.In2006,breadcost$1.50perloaf,milkcost$2.00pergallon,shirtscost$7.00eachandpantscost$12.00perpair.Using2005asthebaseyear,whatwasAquilonia’sinflationratein2006?
a.30percent
b.24.4percent
c.21.6percent
d.Itisimpossibletodeterminewithoutknowingthebaseyear.
ANS:
BPTS:
1DIF:
3REF:
24-1
TOP:
InflationrateMSC:
Applicative
InthecountryofShem,theCPIiscalculatedusingamarketbasketconsistingof5apples,4loavesofbread,3robesand2gallonsofgasoline.Theper-unitpricesofthesegoodshavebeenasfollows:
Table24-3
Year
Apples
Bread
Robes
Gasoline
2002
$1.00
$2.00
$10.00
$1.00
2003
$1.00
$1.50
$9.00
$1.50
2004
$2.00
$2.00
$11.00
$2.00
2005
$3.00
$3.00
$15.00
$2.50
24.RefertoTable24-3.Using2002asthebaseyear,whatwastheinflationratebetween2002and2003?
a.-8.89percent
b.-7.14percent
c.3.75percent
d.11.25percent
ANS:
APTS:
1DIF:
3REF:
24-1
TOP:
InflationrateMSC:
Applicative
25.RefertoTable24-3.Using2002asthebaseyear,whatwastheinflationratebetween2003and2004?
a.28.5percent
b.34.2percent
c.47percent
d.Itisimpossibletodeterminewithoutknowingthebaseyear.
ANS:
BPTS:
1DIF:
3REF:
24-1
TOP:
InflationrateMSC:
Applicative