ch11quiz - Chapter 11 Measuring the Cost of Living 1. To...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Chapter 11 Measuring the Cost of Living 1. To fix the basket for the CPI, the Bureau of Labor Statistics: a. sets up a committee that decides, based on its own experience, what items will be in the basket. b. reviews the things produced in our economy and selects some of these to include in the basket. c. reviews national expenditure patterns in the economy, and selects a basket that reflects these patterns. d. surveys a large number of consumers to find what they buy, then fixes a basket based on its findings. 2. Suppose the cost of the basket in 2005 was $3,300, and the cost of the basket in the base year was $3,000. Find the CPI for 2005. a. 10 b. 909 c. 110 d. 11 3. Suppose the CPI at the end of 2004 was 150 and the CPI at the end of 2005 was 165. Calculate the inflation rate for 2005. a. 15% b. 10% c. 65% d. 20% 4. Suppose the cost of the basket in 2005 was $4,200 and the cost of the basket in the base year was $4,000. a. The CPI for 2005 is 105.
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 04/08/2010 for the course ECON econ101 taught by Professor Miriam during the Spring '10 term at École Normale Supérieure.

Page1 / 2

ch11quiz - Chapter 11 Measuring the Cost of Living 1. To...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online