Question

According to the textbook, which of the following statements is (are) correct?
(x) If real GDP is higher in one country than in another, it is not necessarily true that the standard of living is higher in the country with the higher real GDP.
(y) Real GDP per person is not a perfect measure of the well-being of individuals in society because it excludes things like leisure time, the value of goods produced at home, and environmental quality.
(z) Poor countries tend to have higher infant mortality rates, higher maternal mortality, and higher rates of child malnutrition than do rich countries.
A. (x), (y) and (z)
B. (x) and (y) only
C. (x) and (z) only
D. (y) and (z) only
E. (z) only

Which of the following statements is (are) correct?
(x) The term “inflation” is used to describe a situation in which the overall level of prices in the economy is increasing and deflation occurs if the price level is decreasing.
(y) The inflation rate is calculated as the percentage change in the price level from the previous period.
(z) If inflation occurs, the typical household will spend more dollars to maintain the same standard of living.
A. (x), (y) and (z)
B. (x) and (y) only
C. (x) and (z) only
D. (y) and (z) only
E. (x) only

Which of the following statements about the CPI is (are) correct?
(x) The CPI is calculated monthly by the Bureau of Labor Statistics and the BLS includes thousands of goods and services in the basket that forms the basis for the consumer price index.
(y) In the consumer price index (CPI), goods and services are weighted according to how much consumers buy of each item.
(z) For any given year, the CPI is the price of the basket of goods and services in the given year divided by the price of the basket in the base year, then multiplied by 100.
A. (x), (y) and (z)
B. (x) and (y) only
C. (x) and (z) only
D. (y) and (z) only
E. (y) only

Answer 1