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24. Newspaper and government sources often cite 'core' CPI, a Consumer Price Index that does not include volatile items like gasoline and food. Why is this a misleading measure? (A) It can overstate inflation. (B) It can understate inflation. (C) It misrepresents the volatility of consumer prices. (D) All of the above.

24. Newspaper and government sources often cite 'core' CPI, a Consumer Price Index that does not include volatile items like gasoline and food. Why is this a misleading measure? (A) It can overstate inflation. (B) It can understate inflation. (C) It misrepresents the volatility of consumer prices. (D) All of the above.

Essentials of Economics (MindTap Course List)
Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter16: Measuring The Cost Of Living
Section: Chapter Questions
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24. Newspaper and government sources often cite 'core' CPI, a Consumer Price Index that does not include volatile items like gasoline and food. Why is this a misleading measure? (A) It can overstate inflation. (B) It can understate inflation. (C) It misrepresents the volatility of consumer prices. (D) All of the above. 25. Why is the phrase, "Follow the science," imprecise and misleading? (A) Scientists are mostly a bunch of nerds who do not deadlift. (B) Science is a process of falsification, not a set of dogmas. (C) Scientists have historically stated that smoking is good for health, that Thalido- mide is safe, and that peptic ulcers are caused by spicy foods (instead of H. pylori). (D) It is neither imprecise nor misleading. Always trust scientists. 26. Suppose that Brock University's tuition is $7,000. The cost of textbooks is $1,000, and the cost of food & housing is $19,000. If you did not go to Brock University, you would have worked as a server, making $50,000 per year. What is your opportunity cost of attending Brock University? (A) $27,000. (B) $77,000. (C) $58,000. (D) $50,000. 27. Wakanda has a GDP of $720 trillion and a population of 6 million. Wakanda's GDP per capita? What is (A) $120,000,000. (B) $720,000,000,000,000. (C) $100,000,000,000. (D) $833,333,333. 10
Transcribed Image Text:24. Newspaper and government sources often cite 'core' CPI, a Consumer Price Index that does not include volatile items like gasoline and food. Why is this a misleading measure? (A) It can overstate inflation. (B) It can understate inflation. (C) It misrepresents the volatility of consumer prices. (D) All of the above. 25. Why is the phrase, "Follow the science," imprecise and misleading? (A) Scientists are mostly a bunch of nerds who do not deadlift. (B) Science is a process of falsification, not a set of dogmas. (C) Scientists have historically stated that smoking is good for health, that Thalido- mide is safe, and that peptic ulcers are caused by spicy foods (instead of H. pylori). (D) It is neither imprecise nor misleading. Always trust scientists. 26. Suppose that Brock University's tuition is $7,000. The cost of textbooks is $1,000, and the cost of food & housing is $19,000. If you did not go to Brock University, you would have worked as a server, making $50,000 per year. What is your opportunity cost of attending Brock University? (A) $27,000. (B) $77,000. (C) $58,000. (D) $50,000. 27. Wakanda has a GDP of $720 trillion and a population of 6 million. Wakanda's GDP per capita? What is (A) $120,000,000. (B) $720,000,000,000,000. (C) $100,000,000,000. (D) $833,333,333. 10
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