14. What basket of goods and services is used to construct the CPI? a. a random sample of all goods and services produced in the economy the goods and services that are typically bought by consumers as determined by government surveys b. c. only food, clothing, transportation, entertainment, and education the least expensive and the most expensive goods and services in each major category d. of consumer expenditures ANS: 15. In the economy of Russia in 2010, consumption was $500, exports were S200, GDP was $1200 government purchases were $250, and investment was S300. What were Russia's imports in 2010? a. -$150 b. -$50 c. $50 d. $150 16. The market basket used to calculate the CPI in Algeria is 4 loaves of bread, 6 gallons of milk, 2 shirts, and 2 pairs of pants. In 2005, bread cost S1.00 per loaf, milk cost S1.50 per gallon, shirts cost S6.00 each, and pants cost S10.00 per pair In 2006, bread cost $1.50 per loaf, milk cost $2.00 per gallon, shirts cost S7.00 each, and pants cost S12.00 year, what was Algeria's inflation rate in 2006? per pair. Using 2005 as the base a. 4 percent b. 11 percent c. 19.6 percent d. 24.4 percent 17. Suppose that in a closed economy GDP is equal to 11,000, taxes are equal to 2,500 consumption equals 8,000 and government purchases equal 1,000. What are private saving, public saving, and national saving? a. 1,500, 1,000, and 500, respectively b. 1,000, 500, and 1,500, respectively c. 500, 1,500, and 2,000, respectively d. None of the above is correct 18. Assume the bonds below have the same term and principal and that the state or local government that issues the municipal bond has a good credit rating. Which list has bonds correctly ordered from the one that pays the highest interest rate to the one that pays the lowest interest rate? a. corporate bond, municipal bond, U.S. government bond bond, municipal bond bond, corporate bond bond, corporate bond b. corporate bond, U.S. government c. municipal bond, U.S. government d. U.S. government bond, municipal