Contrary to common belief, the price of a single item as listed in the CPI (Consumer Price Index) does not always rise and fall in tandem with the price of the same item in the PPI (Producer Price Index). Which of the following is not a reason that makes this so?a.Imports are excluded from PPI, but included in CPI.b.Taxes paid as part of the purchase are not included as part of the PPI but are included in the CPI.c.The PPI includes the prices of goods purchased by other producers while the CPI includes only the prices of goods purchased by consumers.d.Since the PPI measures the change of the price the producer receives for their product and the CPI measure the change of the price the consumer pays for the product, one should rise while the other will fall.
In 1983, a year-long newspaper subscription cost $12.75. Today, a year-long newspaper subscription costs $28.50. If the CPI is 193, what is the relation of the actual price of a year-long newspaper subscription to the expected price, to the nearest cent?a.The actual price is $14.79 higher than the expected price.b.The actual price is $3.89 higher than the expected price.c.The actual price is $9.20 lower than the expected price.d.The actual price is $11.86 lower than the expected price.
The CPI in 1970 was 38.8. The CPI in 2007 was 207.3. The purchasing power of $50,000 in 1970 was _____ the purchasing power of $200,000 in 2007. a. less than b. more than c. the same as d. not comparable to Please select the best answer from the choices provided
The prices of consumer goods do not always exactly follow the CPI. The following chart shows several consumer items, along with their respective prices in 1983 and today.ItemPrice in 1983 ($)Current Price ($)Pair of boots67.45126.85Hair dryer15.2529.95Box of tissues1.152.25Toaster22.8544.25Using the prices shown on this chart, which of the following is a reasonable estimate of the current CPI?a.208b.195c.180d.173
Which of the following is a cause of inflation?a.consumers growing apathetic and failing to notice attempts to raise pricesb.demand continually exceeding supply, leading to an imbalance of money and goods in the marketc.a natural consequence of the use of money instead of trade goodsd.government intervention demanding that prices be raised
Minneapolis, MN has a CPI of 173. Anchorage, AK has a CPI of 226. How does the purchasing power of someone in Minneapolis earning a salary of $42,500 compare to the purchasing power of someone in Anchorage earning a salary of $67,000?a.The person living in Minneapolis has $57.61/CPI more than the person in Anchorage.b.The person living in Minneapolis has $130.45/CPI more than the person in Anchorage.c.The person living in Anchorage has $50.80/CPI more than the person in Minneapolis.d.The person living in Anchorage has $90.82/CPI more than the person in Minneapolis.
When the CPI is 185, an electric razor cost $57.81. What is the difference between the price of an electric razor in 1983 and the cost of an electric razor when the CPI is 207, to the nearest cent? a. $33.44 b. $31.25 c. $26.56 d. $6.88 Please select the best answer from the choices provided
Which of the following is not one of the categories of which the CPI market basket consists?a.housingb.foodc.educationd.industry
A notebook costs $2.65 when the CPI is 182. In 1983, how many notebooks could you buy with $18?a.twentyb.fifteenc.twelved.six
In 1983, a pair of jeans cost $66.35. If a pair of jeans costs $118.10 today, what is the CPI?a.152b.156c.178d.184
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