Question :
21) The CPI market basket determined by
A) tax return data : 1238516
21) The CPI market basket is determined by
A) tax return data of households.
B) supermarket purchases recorded by scanner technology.
C) profit releases of the largest companies.
D) a consumer survey.
E) surveys asking large retail companies, such as Wal-Mart, about their sales of consumer goods and services.
22) For the CPI, the market basket of goods and services is modified
A) each time the Consumer Expenditures Survey is conducted.
B) about every 10 to 20 years.
C) each month when the Price Survey is completed.
D) each year to reflect changes in consumer purchasing habits.
E) at the discretion of the President.
23) According to the CPI basket, the largest item in the households’ budgets is
A) food.
B) housing.
C) transportation.
D) education.
E) apparel.
24) What is the good or service is given the most weight in the CPI?
A) apparel
B) food and beverages
C) housing
D) transportation
E) recreation
25) The CPI market basket
A) contains one unit of each good purchased by the average consumer.
B) weights the goods and services according to the budget of an average urban household.
C) is comprised of a representative sample of the goods that the government guesses people buy.
D) includes only goods and not services.
E) includes only U.S.-produced goods and services.
26) The CPI market basket
A) weights the goods and services according to the budget of an average urban household.
B) determines the best possible way of taxing the average urban household.
C) determines how the spending patterns of the average urban household change from month to month.
D) determines how spending patterns change from urban household to urban household.
E) changes from one month to the next in order to calculate the CPI.
27) When calculating the CPI, the Bureau of Labor Statistics
A) weights the price of goods and services in the basket relative to the importance of the average urban household budget.
B) sums the prices of the goods and services in the average urban household consumption basket.
C) weights the price of all goods and services produced in a year within a country’s borders.
D) multiplies by 100 the average price of goods and services in the average urban consumer’s basket.
E) makes certain to weight the goods and services equally so that no one product is over-weighted.
28) The more money an average household spends on one specific type of good or service per month, the
A) smaller the relative importance of that item in the CPI market basket.
B) larger the relative importance of that item in the CPI market basket.
C) costlier it will be to conduct the Consumer Expenditure Survey.
D) less significant an increase in the price of that good or service will be for the household.
E) more frequently its price is checked when calculating the CPI.
29) Which of the following changes would have the largest impact on the CPI?
A) a one percent increase in the cost of housing
B) a one percent increase in the cost of transportation
C) a one percent increase in the cost of medical care
D) a one percent increase in the cost of education
E) a one percent increase in the cost of apparel
30) In 2013, the reference base period for the CPI for the nation of Wobet, a typical consumer spent $30 on potatoes and $150 on steak. Which of the following is true?
A) The quantity of steak in the basket is larger than the quantity of potatoes.
B) The quantity of potatoes in the basket is larger than the quantity of steak.
C) The quantity of the two goods in the basket is the same.
D) We cannot say exactly how many of each good are in the basket.
E) None of the above answers is correct.
