BMGT 230 Chapter 6 Multiple Choice (University of maryland)

1) The measure of the cost of a standard basket of goods and services in any period relative to the cost of the same basket of goods and services in the base year is called the 1) ______ A) consumption cost calculator. B) consumption production index. C) consumer production index. D) consumer price index. 2) The consumer price index for the current year measures the cost of a standard basket in the ______ year relative to the cost of the same basket in the ______ year. 2) ______ A) current; base B) current; current C) base; index D) base; current 3) The CPI is a measure of the 3) ______ A) real wage. B) price of a specific good or service. C) rate of inflation. D) average level of prices relative to prices in the base year. 4) Suppose that the total expenditures for a typical household in 2018 equaled $2,500 per month, while the cost of purchasing exactly the same items in 2020 was $3,000. If 2018 is the base year, the CPI for 2018 equals 4) ______ A) 0.83. B) 1.00. C) 1.20. D) 1.25. 5) Suppose that the total expenditures for a typical household in 2018 equaled $2,500 per month, while the cost of purchasing exactly the same items in 2020 was $3,000. If 2018 is the base year, the CPI for 2020 equals 5) ______ A) 0.83. B) 1.00. C) 1.20. D) 1.25.