Question

Table 9-10

Product	Quantity (2013)	Price (2013)	Expenditure (2013)	Price (2018)	Expenditure (on base year quantities) (2018)
Computers	1	$1,200	$1,200	$900	$900
Books	10	25	250	30	300
Burgers	50	3	150	4	200
Total			$1,600		$1,400

38) Refer to Table 9-10. Suppose an economy has only three goods and the typical family purchases the amounts given in the table above. If 2013 is the base year, then what is the CPI for 2018?

A) 14.3

B) 87.5

C) 114.3

D) 160

39) The broadest measure of the price level that includes all final goods and services in the GDP is

A) the producer price index    .                      

B) the consumer price index.

C) the GDP inflator.

D) none of the above.

Table 9-7

Year	CPI
2017	173
2018	180

40) Refer to Table 9-7. Suppose that the data in the table above reflect price levels in the economy. What is the inflation rate between 2017 and 2018?

A) 2.9%

B) 3.5%

C) 4.0%

D) 5%

E) 7.5%

41)Which of the following can explain why some countries have not experienced relatively high growth rates in real GDP per capita despite relatively low initial levels of real GDP per capita?

A) Many of these developing countries do not have a functioning court system that can enforce laws.

B) Countries that are relatively poor are more likely to experience wars and revolutions.

C) Countries that are relatively poor are likely to have a lower quality of health care.

D) none of the above

E) all of the above

Answer 1