Kinh tế vĩ mô UEH - (Bản tiếng Anh) Ôn tập trắc nghiệm chương 24

Chapter 24 Measuring the Cost of Living TRUE/FALSE 1. The consumer price index is used to monitor changes in an economy’s production of goods and services over time. ANS: F DIF: 2 REF: 24-0 NAT: Analytic LOC: The study of economics and definitions of economics TOP: CPI MSC: Interpretive 2. When the consumer price index falls, the typical family has to spend fewer dollars to maintain the same standard of living. ANS: T DIF: 2 REF: 24-0 NAT: Analytic LOC: The study of economics and definitions of economics TOP: CPI MSC: Interpretive 3. Economists use the term inflation to describe a situation in which the economy’s overall price level is rising. ANS: T DIF: 1 REF: 24-0 NAT: Analytic LOC: Unemployment and inflation TOP: Inflation MSC: Definitional 4. The inflation rate is the absolute change in the price level from the previous period. ANS: F DIF: 1 REF: 24-0 NAT: Analytic LOC: Unemployment and inflation TOP: Inflation rate MSC: Definitional 5. Inflation can be measured using either the GDP deflator or the consumer price index. ANS: T DIF: 2 REF: 24-0 NAT: Analytic LOC: Unemployment and inflation TOP: Inflation | CPI | GDP deflator MSC: Interpretive 6. The inflation rate reported in the news is usually calculated from the GDP deflator rather than the consumer price index. ANS: F DIF: 2 REF: 24-0 NAT: Analytic LOC: Unemployment and inflation TOP: Inflation rate | CPI | GDP deflator MSC: Interpretive 7. Because the consumer price index reflects the goods and services bought by consumers better than the GDP deflator does, it is the more common gauge of inflation. ANS: T DIF: 1 REF: 24-0 NAT: Analytic LOC: Unemployment and inflation TOP: Inflation | CPI | GDP deflator MSC: Definitional 8. The CPI is a measure of the overall cost of the goods and services bought by a typical consumer. ANS: T DIF: 1 REF: 24-1 NAT: Analytic LOC: The study of economics and definitions of economics TOP: CPI MSC: Definitional 9. Each week, the Bureau of Labor Statistics computes and reports the consumer price index. ANS: F DIF: 1 REF: 24-1 NAT: Analytic LOC: The study of economics and definitions of economics TOP: CPI MSC: Definitional 10. The Bureau of Labor Statistics is part of the U.S. Department of Labor. ANS: T DIF: 1 REF: 24-1 NAT: Analytic LOC: The study of economics and definitions of economics TOP: Bureau of Labor Statistics MSC: Definitional 1619 1620 Chapter 24/Measuring the Cost of Living 11. The Bureau of Labor Statistics determines which prices are most important to the typical consumer by surveying consumers. ANS: T DIF: 1 REF: 24-1 NAT: Analytic LOC: The study of economics and definitions of economics TOP: Bureau of Labor Statistics MSC: Definitional 12. The content of the basket of goods and services used to compute the CPI changes every month. ANS: F DIF: 2 REF: 24-1 NAT: Analytic LOC: The study of economics and definitions of economics TOP: CPI MSC: Interpretive 13. By keeping the basket of goods and services the same when computing the CPI, the Bureau of Labor Statistics isolates the effects of price changes from the effect of any quantity changes that might be occurring at the same time. ANS: T DIF: 1 REF: 24-1 NAT: Analytic LOC: The study of economics and definitions of economics TOP: CPI MSC: Definitional 14. When the consumer price index is computed, the base year is always the first year among the years being considered. ANS: F DIF: 2 REF: 24-1 NAT: Analytic LOC: The study of economics and definitions of economics TOP: CPI MSC: Interpretive 15. The CPI for 2008 is computed by dividing the price of the basket of goods and services in 2008 by the price of the basket of goods and services in the base year, then multiplying by 100. ANS: T DIF: 2 REF: 24-1 NAT: Analytic LOC: The study of economics and definitions of economics TOP: CPI MSC: Interpretive 16. The CPI is always 1 in the base year. ANS: F DIF: 1 REF: 24-1 NAT: Analytic LOC: The study of economics and definitions of economics TOP: CPI MSC: Definitional 17. If the current year CPI is 140, then the price level has increased 40 percent since the base year. ANS: T DIF: 2 REF: 24-1 NAT: Analytic LOC: The study of economics and definitions of economics TOP: CPI MSC: Applicative 18. If the current year CPI is 90, then the price level has decreased 10 percent since the base year. ANS: T DIF: 2 REF: 24-1 NAT: Analytic LOC: The study of economics and definitions of economics TOP: CPI MSC: Applicative 19. The inflation rate for 2007 is computed by dividing (the CPI in 2007 minus the CPI in 2006) by the CPI in 2006, then multiplying by 100. ANS: T DIF: 2 REF: 24-1 NAT: Analytic LOC: Unemployment and inflation TOP: Inflation rate MSC: Interpretive 20. If the value of the consumer price index is 110 in 2005 and 121 in 2006, then the inflation rate is 11 percent for 2006. ANS: F DIF: 2 REF: 24-1 NAT: Analytic LOC: Unemployment and inflation TOP: Inflation rate MSC: Applicative Chapter 24/Measuring the Cost of Living 1621 21. The producer price index measures the cost of a basket of goods and services bought by firms rather than consumers. ANS: T DIF: 1 REF: 24-1 NAT: Analytic LOC: The study of economics and definitions of economics TOP: PPI MSC: Definitional 22. Changes in the consumer price index are useful in predicting changes in the producer price index. ANS: F DIF: 2 REF: 24-1 NAT: Analytic LOC: The study of economics and definitions of economics TOP: CPI | PPI MSC: Interpretive 23. Data from the Bureau of Labor Statistics show that the largest category of consumer spending is housing. ANS: T DIF: 1 REF: 24-1 NAT: Analytic LOC: The study of economics and definitions of economics TOP: Categories of consumer spending MSC: Definitional 24. Data from the Bureau of Labor Statistics show that consumer spending on transportation is only slightly higher than consumer spending on food and beverages. ANS: T DIF: 1 REF: 24-1 NAT: Analytic LOC: The study of economics and definitions of economics TOP: Categories of consumer spending MSC: Definitional 25. Data from the Bureau of Labor Statistics show that consumer spending on medical care is about equal to consumer spending on recreation and consumer spending on education and communication. ANS: T DIF: 1 REF: 24-1 NAT: Analytic LOC: The study of economics and definitions of economics TOP: Categories of consumer spending MSC: Definitional 26. Data from the Bureau of Labor Statistics show that apparel makes up 14 percent of the typical consumer’s budget. ANS: F DIF: 1 REF: 24-1 NAT: Analytic LOC: The study of economics and definitions of economics TOP: Categories of consumer spending MSC: Definitional 27. The goal of the consumer price index is to gauge how much incomes must rise to maintain a constant standard of living. ANS: T DIF: 1 REF: 24-1 NAT: Analytic LOC: The study of economics and definitions of economics TOP: CPI MSC: Definitional 28. Substitution bias occurs because the CPI ignores the possibility of consumer substitution toward goods that have become relatively less expensive. ANS: T DIF: 2 REF: 24-1 NAT: Analytic LOC: The study of economics and definitions of economics TOP: CPI | Substitution bias MSC: Interpretive 29. Substitution bias causes the CPI to understate the increase in the cost of living from one year to the next. ANS: F DIF: 1 REF: 24-1 NAT: Analytic LOC: The study of economics and definitions of economics TOP: CPI | Substitution bias MSC: Definitional 30. When a new good is introduced, consumers have more variety from which to choose, and this in turn increases the cost of maintaining the same level of economic well-being. ANS: F DIF: 1 REF: 24-1 NAT: Analytic LOC: The study of economics and definitions of economics TOP: CPI | Introduction of new goods MSC: Definitional 31. The CPI does not reflect the increase in the value of the dollar that arises from the introduction of new goods. ANS: T DIF: 1 REF: 24-1 NAT: Analytic LOC: The study of economics and definitions of economics TOP: CPI | Introduction of new goods MSC: Definitional 1622 Chapter 24/Measuring the Cost of Living 32. If the quality of a good deteriorates from one year to the next while its price remains the same, then the value of a dollar falls. ANS: T DIF: 1 REF: 24-1 NAT: Analytic LOC: The study of economics and definitions of economics TOP: CPI | Quality change MSC: Definitional 33. The Bureau of Labor Statistics does not try to account for quality changes in the goods and services in the basket used to compute the CPI. ANS: F DIF: 2 REF: 24-1 NAT: Analytic LOC: The study of economics and definitions of economics TOP: CPI | Quality change MSC: Interpretive 34. There is no longer much debate among economists concerning the severity of and the solution to the problems in using the CPI to measure the cost of living. ANS: F DIF: 2 REF: 24-1 NAT: Analytic LOC: The study of economics and definitions of economics TOP: CPI MSC: Interpretive 35. Many economists believe the bias in the CPI is now only about half as large as it once was. ANS: T DIF: 1 REF: 24-1 NAT: Analytic LOC: The study of economics and definitions of economics TOP: CPI MSC: Definitional 36. The CPI and GDP deflator usually tell two different stories about how quickly prices are rising. ANS: F DIF: 2 REF: 24-1 NAT: Analytic LOC: The study of economics and definitions of economics TOP: CPI | GDP deflator MSC: Interpretive 37. When the price of Italian wine rises, this change is reflected in the U.S. CPI but not in the U.S. GDP deflator. ANS: T DIF: 2 REF: 24-1 NAT: Analytic LOC: The study of economics and definitions of economics TOP: CPI | GDP deflator MSC: Applicative 38. When the price of nuclear missiles rises, this change is reflected in the CPI but not in the GDP deflator. ANS: F DIF: 2 REF: 24-1 NAT: Analytic LOC: The study of economics and definitions of economics TOP: CPI | GDP deflator MSC: Applicative 39. In the U.S., when the price of oil rises, the CPI rises by much more than does the GDP deflator. ANS: T DIF: 2 REF: 24-1 NAT: Analytic LOC: The study of economics and definitions of economics TOP: CPI | GDP deflator MSC: Applicative 40. The group of goods and services used to compute the GDP deflator changes automatically over time, but the group of goods and services used to compute the CPI does not. ANS: T DIF: 2 REF: 24-1 NAT: Analytic LOC: The study of economics and definitions of economics TOP: CPI | GDP deflator MSC: Applicative 41. The purpose of measuring the overall level of prices in the economy is to permit comparison between dollar figures from different times. ANS: T DIF: 1 REF: 24-2 NAT: Analytic LOC: The study of economics and definitions of economics TOP: Comparing dollar figures MSC: Definitional 42. A dollar figure from 1908 is converted into 2008 dollars by dividing the 2008 price level by the 1908 price level, then multiplying by the 1908 dollar figure. ANS: T DIF: 2 REF: 24-2 NAT: Analytic LOC: The study of economics and definitions of economics TOP: Comparing dollar figures MSC: Interpretive Chapter 24/Measuring the Cost of Living 1623 43. If the CPI today is 120 and the CPI five years ago was 80, then something that cost $1 five years ago would cost $1.50 in today's prices. ANS: T DIF: 2 REF: 24-2 NAT: Analytic LOC: The study of economics and definitions of economics TOP: Comparing dollar figures MSC: Applicative 44. Henry Ford paid his workers $5 a day in 1914, when the CPI was 10. Today, with the price index at 177, the $5 a day is worth $88.50. ANS: T DIF: 2 REF: 24-2 NAT: Analytic LOC: The study of economics and definitions of economics TOP: Comparing dollar figures MSC: Applicative 45. If you currently make $25,000 a year and the CPI rises from 110 today to 150 in five years, then you need to be making $43,333.33 in five years to have kept pace with consumer price inflation. ANS: F DIF: 2 REF: 24-2 NAT: Analytic LOC: The study of economics and definitions of economics TOP: Comparing dollar figures MSC: Applicative 46. When some dollar amount is automatically corrected for inflation