Use the information in Study shows costs of living for working families

# Use the information in study shows costs of living

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28.Use the information in "Study shows costs of living for working families leveling off in Pa." to answer questions 28 – 31.Using Allegheny county as the base county, the price index in Centre county is: A) 129.27B) 100C) 88.15D) 113.44Correct Answer(s):CFeedback: (25300/28700)*100 = 88.15Table for Individual Question FeedbackPoints Earned:3.0/3.0 29.Using Allegheny county as the base county, the price index in Chester county is: Feedback: (37100/28700)*100=129.27Table for Individual Question FeedbackPoints Earned:3.0/3.030.
Using Allegheny county as the base county, if you are currently making \$75,000 per year in Centre county, howmuch would you need to make in Allegheny county to have the same real purchasing power as you have in Centre county? Feedback: 75,000/.8815 = X/1.00, X=85082.25Table for Individual Question FeedbackPoints Earned:3.0/3.0 31.Using Allegheny county as the base county, if you are currently making \$75,000 per year in Centre county, howmuch would you need to make in Chester county to have same purchasing power as you have in Centre county? Feedback: 75000/.8815 = X/1.2927, X=109985.82Table for Individual Question FeedbackPoints Earned:3.0/3.0 32.A friend of mine came to Penn State in the 1970s and told me that sticky buns at the College Diner cost \$.75 (75 cents) in December of 1976. The CPI in December of 1976 was 58.4 and in December of 2012, the CPI was 230.979. Use this CPI data and assuming that the price of sticky buns rose in exact proportion to the CPI, what would the price of sticky buns have to be in December of 2012 so that the ‘real price’ of sticky buns remained constant? A) \$2.97B) \$29.70C) \$17.99D) \$17985.56Correct Answer(s):AFeedback: .75/.584 = X/2.30979, X=2.97Table for Individual Question FeedbackPoints Earned:3.0/3.0 33.
Part 2: 2 questions at 2 points each for a total of 4 pointsGovernment spending on transfer payments is included in government purchases when calculating GDP because it results in the production of new goods and services. Table for Individual Question FeedbackPoints Earned:2.0/2.0 34.If inflation is anticipated, some effects of inflation on the redistribution of income can be avoided. Table for Individual Question FeedbackPoints Earned: 2.0/2.0