Table 10-3

The table below reports nominal and real GDP for the U.S. from 1929 to 1932.
Year Nominal Real GDP
GDP
1929 103.6 977
1930 91.2 892.8
1931 76.5 834.9
1932 58.7 725.8

Paper answer:

MCQ answer:

16.Refer to Table 10-3. What is the GDP deflator and the inflation rate for 1931?
a. 9.16, -11.5
b. 9.16, -10.3
c. 1091.37, 10.3
d. 1091.37, 11.5

17.Refer to Table 10-3. What was the growth rate of real GDP for 1930?
a. -8.62%. Real GDP is a better gauge of economic well-being than nominal GDP.
b. -8.62%. Nominal GDP is a better gauge of economic well-being than real GDP.
c. -9.43%. Real GDP is a better gauge of economic well-being than nominal GDP.
d. -9.43%. Nominal GDP is a better gauge of economic well-being than real GDP.
18. Refer to Table 10-3. What was the growth rate of real GDP for 1931?
a. -6.93%. Real GDP is a better gauge of economic well-being than nominal GDP.
b. -6.93%. Nominal GDP is a better gauge of economic well-being than real GDP.
c. -6.49%. Real GDP is a better gauge of economic well-being than nominal GDP.
d. -6.49%. Nominal GDP is a better gauge of economic well-being than real GDP.
Table 10-4
The country of Caspir produces only cereal and milk. Quantities and prices of these goods for the
last several years are shown below. The base year is 2008.
Prices and Quantities
Year Price of Cereal Quantity of Price of Milk Quantity of
Cereal Milk
2008 $4.00 90 $1.50 150
2009 $4.00 100 $2.00 180
2010 $5.00 120 $2.50 200
2011 $6.00 150 $3.50 200
Paper answer :

MCQ answer:

19.Refer to Table 10-4. In 2009, this country’s

a. real GDP was $660, and the GDP deflator was 113.4
b. real GDP was $670, and the GDP deflator was 115.2
c. real GDP was $660, and the GDP deflator was 115.2.
d. real GDP was $670, and the GDP deflator was 113.4.
20. Refer to Table 10-4. In 2011, this country’s
a. real GDP was $900, and the GDP deflator was 150.2.
b. real GDP was $900, and the GDP deflator was 177.8.
c. real GDP was $1065, and the GDP deflator was 177.8.
d. real GDP was $1065, and the GDP deflator was 150.2.
21.Refer to Table 10-4. This country’s output grew
a. 29.9% from 2008 to 2009.
b. 33.3% from 2009 to 2010.
c. 24.3% from 2009 to 2010.
d. 15.4% from 2010 to 2011.

Table 11-1

The table below pertains to Pieway, an economy in which the typical consumer’s basket consists
of 10 bushels of peaches and 15 bushels of pecans.
Year Price of Price of
Peaches Pecans
2005 $11 per bushel $6 per bushel
2006 $9 per bushel $10 per bushel

Paper answer

MCQ answer

26.Refer to Table 11-1. The cost of the basket in 2005 was

a. $200.
b. $210.
c. $240.
d. $245.

27.Refer to Table 11-1. The cost of the basket in 2006 was

a. $200.
b. $210.
c. $240.
d. $245.

28.Refer to Table 11-1. If 2005 is the base year, then the CPI for 2005 was
a. 83.3.
b. 100.
c. 120.
d. 200.

29.Refer to Table 11-1. If 2005 is the base year, then the CPI for 2006 was
a. 83.3.
b. 100.
c. 120.
d. 240.

30.Refer to Table 11-1. If 2006 is the base year, then the CPI for 2005 was
a. 83.3.
b. 100.
c. 120.
d. 200.

31.Refer to Table 11-1. If 2006 is the base year, then the CPI for 2006 was
a. 83.3.
b. 100.
c. 120.
 d. 240.

32.Refer to Table 11-1. If 2005 is the base year, then the inflation rate in 2006 was
a. 16.7 percent.
b. 20 percent.
c. 40 percent.
d. 44.1 percent.

33.Refer to Table 11-1. If 2006 is the base year, then the inflation rate in 2006 was
a. 16.7 percent.
b. 20 percent.
c. 40 percent.
d. 44.1 percent.
Table 11-4
The table below pertains to Wrexington, an economy in which the typical consumer’s basket
consists of 20 pounds of meat and 10 toys.
Year Price of Price of a
Meat Toy
2004 $3 per pound $2
2005 $1 per pound $7
2006 $4 per pound $5

34.Refer to Table 11-4. The cost of the basket in 2006 was

a. $9.
b. $130.
c. $140.
d. $270.

35.Refer to Table 11-4. The cost of the basket

a. increased from 2004 to 2005 and increased from 2005 to 2006.
b. increased from 2004 to 2005 and decreased from 2005 to 2006.
c. decreased from 2004 to 2005 and increased from 2005 to 2006.
d. decreased from 2004 to 2005 and decreased from 2005 to 2006.

36.Refer to Table 11-4. The cost of the basket

a. decreased by $2 from 2004 to 2005.
b. increased by $3 from 2004 to 2005.
c. increased by $7 from 2004 to 2005.
d. increased by $10 from 2004 to 2005.

37.Refer to Table 11-4. If the base year is 2004, then the CPI in 2004 was
a. 0.
b. 1.
c. 80.
d. 100.

38.Refer to Table 11-4. If the base year is 2004, then the CPI in 2005 was
a. 88.9.
b. 90.
c. 100.
d. 112.5.

39.Refer to Table 11-4. If the base year is 2004, then the CPI
a. increased from 2004 to 2005 and increased from 2005 to 2006.
b. increased from 2004 to 2005 and decreased from 2005 to 2006.
c. decreased from 2004 to 2005 and increased from 2005 to 2006.
 d. decreased from 2004 to 2005 and decreased from 2005 to 2006.

40.Refer to Table 11-4. If the base year is 2006, then the CPI
a. increased from 2004 to 2005 and increased from 2005 to 2006.
b. increased from 2004 to 2005 and decreased from 2005 to 2006.
c. decreased from 2004 to 2005 and increased from 2005 to 2006.
d. decreased from 2004 to 2005 and decreased from 2005 to 2006.

41.Refer to Table 11-4. If the base year is 2004, then the inflation rate in 2006 was
a. 44.4%.
b. 50%.
c. 62.5%.
d. 80%.

42.Refer to Table 11-4. If the base year is 2006, then the inflation rate in 2005 was
a. -44.5%.
b. -30.8%.
c. 7.7%.
d. 12.5%.

43.Refer to Table 11-4. The inflation rate was

a. negative in 2005 and negative in 2006.
b. negative in 2005 and positive in 2006.
c. positive in 2005 and negative in 2006.
d. positive in 2005 and positive in 2006.
Table 11-5
The table below pertains to Napandsnack, an economy in which the typical consumer’s basket
consists of 2 pillows and 15 hotdogs.
Year Price of a Price of a
Pillow Hotdog
2009 $40 $3
2010 $45 $4
2011 $50 $3

PaperAnswer:

MCQ Answer:

44. Refer to Table 11-5. The cost of the basket

a. increased from 2009 to 2010 and increased from 2010 to 2011.
b. increased from 2009 to 2010 and decreased from 2010 to 2011.
c. decreased from 2009 to 2010 and increased from 2010 to 2011.
d. decreased from 2009 to 2010 and decreased from 2010 to 2011.

45.Refer to Table 11-5. If the base year is 2009, then the consumer price index was
a. 100 in 2009, 115 in 2010, and 116 in 2011.
b. 100 in 2009, 115 in 2010, and 135 in 2011.
c. 100 in 2009, 120 in 2010, and 116 in 2011.
d. 120 in 2009, 125 in 2010, and 135 in 2011.

46.Refer to Table 11-5. If the base year is 2010, then the consumer price index was
a. 83.33 in 2009, 100.00 in 2010, and 96.67 in 2011.
b. 85.56 in 2009, 100.00 in 2010, and 102.22 in 2011.
c. 85.56 in 2009, 100.00 in 2010, and 96.67 in 2011.
d. 92.22 in 2009, 99.00 in 2010, and 95.22 in 2011.
47.Refer to Table 11-5. If the base year is 2011, then the CPI
a. increased from 2009 to 2010 and increased from 2010 to 2011.
b. increased from 2009 to 2010 and decreased from 2010 to 2011.
c. decreased from 2009 to 2010 and increased from 2010 to 2011.
d. decreased from 2009 to 2010 and decreased from 2010 to 2011.

48.Refer to Table 11-5. If the base year is 2009, then the economy’s inflation rate in 2010 is
a. 20 percent.
b. 25 percent.
c. 30 percent.
d. 120 percent.

49.Refer to Table 11-5. If the base year is 2010, then the economy’s inflation rate in 2010 was
a. 10.5 percent.
b. 15.0 percent.
c. 20.0 percent.
d. 25.00 percent.

4. The information for 2008 in millions in the table below was reported by the World Bank. On
the basis of this information, which list below contains the correct ordering of real GDP per
person from highest to lowest?
Country GDP (Constant US$) GDP(Current US$) Population
Germany 2,091,573 3,649,493 82.11
Japan 5,166,281 4,910,839 127.70
U.S. 11,513,872 14,093,309 304.06
a. Japan, Germany, United States
b. Japan, United States, Germany
c. Germany, United States, Japan
d. United States, Japan, Germany

5. The information below for 2008 in millions was reported by the World Bank. On the basis
of this information, which list below contains the correct ordering of GDP per person from
highest to lowest?
Country GDP (Constant US$) GDP(Current US$) Population
Argentina $394,595 $328,465 39.88
Bolivia $11,373 $16,674 9.69
Peru $84,241 $129,109 28.84
a. Argentina, Bolivia, Peru
b. Argentina, Peru, Bolivia
c. Bolivia, Argentina, Peru
d. Peru, Bolivia, Argentina

6. The information below for 2008 in millions was reported by the World Bank. On the basis
of this information, which list below contains the correct ordering of GDP per person from
highest to lowest?
Country GDP (Constant US$) GDP(Current US$) Population
Ghana 7,690 16,653 23.35
Kenya 17,569 30,354 38.76
Tanzania 15,394 20,490 41.276
a. Ghana, Kenya, Tanzania
b. Ghana, Tanzania, Kenya
c. Kenya, Tanzania, Ghana
d. Kenya, Ghana, Tanzania