Please help me with these questions

1 l. The cost of the basket of goods in 2005 is $550 and the cost of the basket of goods in 2011 is $200. If 2005 is used as the base year, the price index for 2011 is: a} 127.2 b} 155 c} 23.5 d} 100 12. Suppose that the CPI in 2013 was 125.2 and the CPI in 2015 was 139.1. The rate of ination between 2013 and 2015 is: a} 11.1%. b) 12.9%. c} 13.9%. d)14.3%. 13. Suppose that the CPI in Year 1 is 150 and the CPI in Year 2 is 200. The rate of ination between Year 1 and Year 2 is: a}14.28%. b}25%. c)33.33%. d}50% 14. Suppose that the CPI in 2014 is 120 and the CPI in 2015 was 112, the rate of ination between 2014 and 2015 is: a} 3.1% b}-8.6%. c}.4.11'%. d}6.6% 15. Which of the following statements is true about CPI [consumer price index} and PCB [personal consumption expenditure)? a) CPI measures weighted average market values of used goods and services while PCE measures weighted average market values of new goods and services b) CPI measures weighted average market values of new goods while PCE measures weighted average market values of used goods c) CPI measures values of goods and services purchased by households while PCE measures values of goods and services sold by businesses d) Both are the same 6. The index used most often to measure prices paid by households is the: a) producer price index b) consmner price index c) wholesale price index d) GDP deator 7. Which of the following is the name used to describe the price index that consists of intermediate goods and fmished goods? a} producer Price Index b} consumer Price Index c} employment Cost Index d] processing Price Index 8. An economics professor is discussing a measure of ination over time based on a basket of goods comprised of all the components of GDP. Which measure is it? a) Consumer Price Index b} GDP Price Index c} Consumer GDP d} GDP Deator 9. If the price index moves from It}? to 110, the rate of ination is: a} 3% b} 30% c) 28% a):zsas 10. The cost of basket of goods in Year 1 is $200 and the cost of the basket of goods in Year 2 is $225. If Year 1 is used as base year, the Year 2 price index is: a} 80 b) 112.5 c} 66.6? d)150 CHAPTER 9 1. Ination is an increase in: a] the price of one item b) the weighted average price level c} the weighted average income level d] real GDP 2. Ination can be calculated in terms of how the overall cost of changes over time. a] all goods b} the basket of goods c] all goods and services d] all services 3. The effects of ination are seen in: a) goods and services onlyr b} wages and income levels only c} services and wages onl_v d} goods, services, wages and income levels 4. Two factors that complicate the calculation of the ination rate are: a) substitution and qualityfnew product bias b} preferential bias c) complimentary product bias d) consumer behavior bias 5. A price index is: a) a measurement showing how the average price of a bundle of goods changes over time b) a measurement showing the cost of a bundle of goods at a point in time c) a sustained increase in the overall price level d) a decrease in the overall price level 16. What distinguishes concepts of HEADLINE ination from CORE ination? a) Both are the same, only difference in name b) Headline is for the public while core is for internal use at the Bureau of Labor Statistics c) Headline is for headline news on public television while core is for news in the evening d) Headline include all goods and services while core excludes food and energy prices 1?. The situation where the buying power of money in terms of goods and services increases is called: a) deation. b) ination. c) stationary pricing. d) hyperination. 13. Deation is a great economic problem because: a) consumers can not afford to maintain their usual lifestyles. b} prices and wages fall but debts remain the same. c} people have difculty paying back their debts. d} social Security costs rise very fast. e} choose any two or more combinations om above {a-d}, and state those as your answer. 19. The effect of substitution bias is that the rise in the price of a xed basket of goods over time tends to the rise in a consumer's true cost of living, because it doesn't take into account that the person can substitute between goods according to changes in their relative prices. a} stabilize b} understate c} overstate d) reduce 20. A. lender demands an interest rate in part to compensate for any expected , so that the money that is repaid in the future will have at least as much buying power as the money that was originally loaned. a} risk premium b} ination. c} compound interest d} opportunity costs