Question

In 2015, the typical consumer purchased the sameamount , but the price of books had risen to $30 and the price of hamburgers had risen to $3 each. If 2010 is the base year, what is the CPI in 2015?

Select one:

a. $375

b. $300

c. $125

d. $100

One trend in labor markets is:

Select one:

a. a decrease in average real wages in the United States and other industrial countries.

b. increasing wage inequality in the United States.

c. weak rates of job creation in the United States since 1980.

d. an increase in the rate of real wage growth since the early 1970s.

Answer 1

1.Option D.

• Here 2010 is the base year and we take the CPI of the base year as 100.
• In 2015 the total cost of books and hamburgers equals $30+$3 =$33.
• As the customer purchases the same amount like the base year we can calculate the CPI of 2015 as:-
• CPI =( cost of market basket/cost of market basket )*100

= ( $ 33/ $ 33 ) * 100 = $100//

2. Option A.

• In the labour market, the price of the labour is the real wages of the labourers.
• Since 1973, US experienced a slowdown in real wage growth, which was seen as a major trend in the labour market.