1、Name: Class: Date: Chapter6-MeasuringtheCostofLiving1. BabeRuth,thefamousbaseballplayer,earned$80,000in1931.Today,thebestbaseballplayerscanearn200timesasmuchasBabeRuthin1931.ArethebestbaseballplayersbetteroffthanBabeRuth? a. Yes,thebestbaseballplayerstodayarebetteroffthanBabeRuthwasin1931because
2、theyearnmuchmore. b. No,becausepriceshavealsorisen. c. Itcannotbedeterminedbecauseonecannotmakejudgmentsaboutchangesinthestandardoflivingbasedonchangesinpricesandchangesinincomes. d. Itcannotbedeterminedwithoutadditionalinformationregardingincreasesinpricessince1931.ANSWER: d2. Howdoesariseinthec
3、onsumerpriceindexaffectatypicalfamily? a. Thetypicalfamilyhastospendmoredollarstomaintainthesamestandardofliving. b. Thetypicalfamilycanspendfewerdollarstomaintainthesamestandardofliving. c. Thetypicalfamilyfindsthatitsstandardoflivingisnotaffected. d. Thetypicalfamilycanoffsettheeffectsofrisingpr
4、icesbysavingmore.ANSWER: a3. Whichofthefollowingistheconsumerpriceindexusedfor? a. totrackchangesinthelevelofwholesalepricesintheeconomy b. tomonitorchangesinthecostofliving c. tomonitorchangesinthelevelofrealGDP d. totrackchangesinthestockmarketANSWER: b4. Whichofthefollowingistheconsumerpricei
5、ndexusedfor? a. todifferentiatebetweengrossnationalproductandgrossdomesticproduct b. toturndollarfiguresintomeaningfulmeasuresofpurchasingpower c. tocharacterizethetypesofgoodsandservicesthatconsumerspurchase d. tomeasurethequantityofgoodsandservicesthattheeconomyproducesANSWER: b5. Whichsituatio
6、nisdescribedbytheterm“inflation”? a. Theoveralllevelofpricesintheeconomyisincreasing. b. Incomesintheeconomyareincreasing. c. Stockmarketpricesarerising. d. Nominalinterestratesintheeconomyarerising.ANSWER: a6. Whentheoveralllevelofpricesintheeconomyisincreasing,whatistheeconomyexperiencing? a. e
7、conomicgrowth b. inflation c. unemployment d. deflationANSWER: bCopyrightCengageLearning.PoweredbyCognero.Page 36Name: Class: Date: Chapter6-MeasuringtheCostofLiving7. Whatbestdefinestheinflationrate? a. thepr
