fall2011review3(chapters222324)(1)

fall2011review3(chapters222324)(1) - Econ201 Review Sheets...

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Econ201 Review Sheets for Chapters 22, 23, 24. Dr. Chen 10/27/2011 Multiple Choice Questions for Exam #3 Chapter 22 The CPI and the Cost of Living 1. The CPI measures the prices of the a. different baskets of consumer goods and services in different years b. different baskets of consumer goods and services in same year c. same basket of consumer goods and services in same year d. same basket of goods and services in different years. 2. If the current period has a CPI of 150, then the amount of inflation since the base period is: a. 150 percent b. 50 percent c. 100 percent. d. unknown without knowing the base period’s CPI. 3. The inflation rate measures the a. average price of the goods and services consumed by urban consumers b. percentage change in the price level from one year to the next year. c. Cost of a CPI basket at current period prices divided by the cost of a CPI basket at base period prices d. Percentage change in the quantity of goods and services consumed by urban consumers. 4. The fact the consumers substitute one good for another when prices change is a. considered in calculating the CPI b.
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fall2011review3(chapters222324)(1) - Econ201 Review Sheets...

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