经济学原理对应练习 24.docVIP

Chapter 24 Measuring the Cost of Living Multiple Choice 1. Babe Ruth, the famous baseball player, earned $80,000 in 1931. Today, the best baseball players can earn more than 300 times as much as Babe Ruth earned in 1931. However, prices also have risen since 1931. We can conclude that a. the best baseball players today are about 300 times better off than Babe Ruth was in 1931. b. because prices have risen also, the standard of living of baseball stars hasnt changed since 1931. c. one cannot make judgments about changes in the standard of living based on changes in prices and changes in incomes. d. one cannot determine whether baseball stars today enjoy a higher standard of living than Babe Ruth did in 1931 without additional information regarding increases in prices since 1931. ANS: D PTS: 1 DIF: 2 REF: 24-0 TOP: Prices | Standard of living MSC: Interpretive 2. When the consumer price index rises, the typical family a. has to spend more dollars to maintain the same standard of living. b. can spend fewer dollars to maintain the same standard of living. c. finds that its standard of living is not affected. d. can offset the effects of rising prices by saving more. ANS: A PTS: 1 DIF: 1 REF: 24-0 TOP: Consumer price index | Standard of living MSC: Interpretive 3. The consumer price index is used to a. track changes in the level of wholesale prices in the economy. b. monitor changes in the cost of living. c. monitor changes in the level of real GDP. d. track changes in the stock market. ANS: B PTS: 1 DIF: 1 REF: 24-0 TOP: Consumer price index MSC: Interpretive 4. The consumer price index is used to a. differentiate gross national product from net national product. b. turn dollar figures into meaningful measures of purchasing power. c. characterize the types of goods and services that consumers purchase. d. measure the quantity of goods and services that the economy produces. ANS: B PTS: 1 DIF: 1 REF: 24-0 TOP: Consumer price index MSC: Interpretive 5. The term infla