Q$12$: Using the $1989$ base as a base, the price index for computers is now $125.$ What does this

index number mean?

A$.$ price of computers has decreased $25\%$ since $1989$

B$.$ price of computers has increased $125\%$ since $1989$

C$.$ price of computers has increased $25\%$ since $1989$

D$.$ none of the above three answers are correct

Q$13$: A

economic indicator is one whose changes lag behind or follow

changes in the economy.

A$.$ Lagging

B$.$ Coincidence

C$.$ Leading

Q$14$: Some criticisms of the CPI include all of the following except:

A$.$ the market basket used in the CPI may not reflect current spending priorities

B$.$ the CPI takes advantage of sale prices

C$.$ the CPI does not adjust for changes in quality

D$.$ the CPI does not measure prices for rural Americans

The following $2$ questions $($O$15$ to O$16)$ are based on the following information:

The CPI's at the start of each decade from $1940$ to $1990$ were:

Q$15$: What was the rate of inflation for the $1950\text{'}$s$,$ as measured by the percentage change in

the CPI?

Q$16$: What was the rate of inflation for the $1960\text{'}$s$,$ as measured by the percentage change in

the CPI?

Q$17$: Name the major category added for the market basket of goods and services in $1998?$

Q$18$: Tuition at University Z was $$1100$ per quarter in $1985(\frac{C}{P}$I $=107\mathrm{.}6).$ How much should

tuition be in $2001$ adjusted for inflation $(\frac{C}{P}$I $=175\mathrm{.}1)?$

The following $2$ questions $($O$19$ to O$20)$ are either "True" or "False"

Q$19$: 'Child care' is one of the eight major categories of goods and services in the market

basket.

Q$20$: The current 'base period' that we are on is $1982-1984.$Module $8$ Questions$-$Submit answers via email to

mccartc$1$@ohio.edu according to above

instructions: $($There are $20$ questions to be answered for Module $8)$

The following $4$ questions $($O$1$ to $O4)$ are based on the following information:

You and your friends have decided to go to The Kentucky Derby. There are $13$ horses in

the race. How many ways can the horses come in first, second, or third?

Steps for Calculation:

Q$1$: Is this an example of a combination or a permutation?

Q$2$: What is $N?$

Q$3$: What is $r?$

Q$4$: What is the calculated value for this example?

The following $4$ questions $(05$ to $08)$ are based on the following information:

You have $18$ friends that you want to invite to dinner. However, your dining room table

only seats $6$ people. Since, you will take up one seat, you can only have five friends at one time.

How many different groups of guests can you have?

Steps for Calculation:

Q$5$: Is this an example of a combination or a permutation?

Q$6$: What is $N?$

Q$7$: What is $r?$

Q$8$: What is the calculated value for this example?

The following $2$ questions $($Q$9$ to O$10)$ are either "True" or "False"

Q$9$: With a permutation 'order matters'.

Q$10$: $5!$ is equal to $120.$

Q$11$: Which one of the following is NOT one of the major uses of the CPI?

A$.$ The CPI is used to evaluate and determine economic policy.

B$.$ The CPI is used to compare prices in different years.

C$.$ The CPI is used to determine salary and price adjustments.

D$.$ All of the above three answers are major uses of the CPI.