cot/1W Bomb
\ «'1' M min/t: g; 581% ddrmims (WM
" W, W1: 84, England LA H 5
Eva/0 r, '1 8am;
(A1114 '1 83mm
\ Federal 293% b 148 ' Jed/1 may miaho :hél
owned \9 haw/(w i v - . M (rm/1,
bard "Cm/INS " WaSWH/w D~C-' «Aha
'0 l «11
SPA/M615 AND ENVESTMELMT (comb)
m a dam Wmmk 8:: (no Xavmoip +M) W A .
sowUS \em wsmwcm, ' , W,
90¢ 91; imam : mam ram K
9
9*
k (0am A, -i
SQVW " SW9 3 01% A 9
\nvt'SJva/w s AWE/wt "rw Low/Ls -
00mm igz, Akfécgelg \yweihmg (1&3 M 19mg
The CPI tells us the in the base period, which is by denition equal to
O A. price level in a given period expressed as a percentage of the price level; zero
O B. ination rate in a given period compared to the ination rate; zero
G) c. price level in a give
The table shows the quantities in the CPI basket and the prices in 2010,
2011, and 2012. 2010 2011
_ Item Quantity Price Price 2012 Price
The base year '5 2010' Bread 2 loaves $0.50 $0.75 $0.75
Ination rate in 2012 = (CPI in 2012 -CP| in 2011)+ CPI in 201
The CPI, the GDP price index, and the PCE price index are all based on the prices
of dierent baskets of goods and services.
The CPI is a measure of the average of the prices paid by urban consumers for a
xed market basket of consumption goods and services
In 2010 and in 2011, consumers in Dexter consumed only books and pens.
2010 2011
The prices and quantities for 2010 and 2011 are listed in the table. Item price Quantity price Quantity
The reference base period for Dexters CPI is 2010 and 2010 is also
Once a month, the Bureau of Statistics calculates the Consumer Price Index, which is a measure of the consumers for a xed basket of consumer
goods and services.
0 A. Government; average of the prices paid by all
B. Labor; average of the prices paid by ur
Bureau of Economic Analysis data show that for the period 1929 through 2008 the average annual increase in the GDP price index is 3.0 percent.
The Bureau of Labor Statistics data show that for the period 1929 through 2008, the average annual increase in t
Marketing
CHAPTER 2 - THE BUYER BEHAVIOUR
The importance of understanding customer needs
Understanding buyer behaviour in consumer markets
Analyzing buyer behaviour in organizational markets
Organizational buying motivations
Role assumed by people within
If the CPI rises from 120 to 126, then
0 A. on average, the price paid by urban consumers for a xed basket of consumer goods and services rises by 6 percent
O B. the price of transportation rises by at least 5 percent
G) C. on average, the price paid by u
In 2010 and in 2011, consumers in Dexter consumed only books and pens.
The prices and quantities for 2010 and 2011 are listed in the table.
The reference base period for Dexter's CPI is 2010, and 2010 is also the year of
the Consumer Expenditure Survey.
T
Read the news clip, then answer the Money market funds are yielding almost
following questions. nothing
The real interest rate on a money fund is Last month, the interest rate on a money
- 0.02 percent a year. fund averaged
0.08% a year and on 5year CDs i
A.Jo '
whole.
3.5
II
D. AI (26")
peoc Ananya is out of work due to a slowdown in production in the US as a
C- Br structural unemployment
on from Amazon delivering goods directly to
to competition from other pizze places in the area.
0 cold t
The ination rate is calculated as (CPI in current year- CPI in previous year)x 100
[CPI in previous year, which is (241.0 - 237.5) x 100 I 237.5 = 1.5 percent.
The CPI basket consists of items that buy and it is updated frequently to
G) A. urban households; reduce bias
O B. urban households; permit long-term price comparisons on individual goods
O 0. all households; provide a valid comparison with 1982-1984
C) D
The table shows the quantities in the CPI basket and the prices in 2010,
2011, and 2012. 2010 2011
_ Item Quantity Price Price 2012 Price
The base year '5 2010' Bread 2 loaves $0.50 $0.75 $0.75
In 2011, the cost of the CPI basket is a 3 a '0 a '0
(2x $0.7
Amazoncom agreed to pay its workers $26 an hour in 1999 and $48 an hour in 2001. The
CPI in 1999 was 166 and in 2001 was 180.
Calculate the real wage rate in each year (to the nearest cent). Did these workers really get
a pay raise between 1999 and 2001 ?
In the United States, the CPI basket consists of items that
has the greatest weight in the CPI basket.
O A. an average American household buys; Medical care
C) B. a middle-income household buys; Food and beverages
O C. all households buy; Recreation
6) D.
The real wage rate in 1999, expressed in dollars of the reference base year is
equal to the nominal wage rate in 1999 divided by the CPI in 1999, all multiplied by
100.
So the real wage rate in 1999 is ($26 + 166) x 100, which is $15.66.
The real wage rat
AS-AD and potential GDP
Ch23 Economics
Ch08 Macroeconomics
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers
the question.
1) Real variables
A) are those that determine the cost of living.
B) are those that determine