81.Real per capita income refers to:
a.a worker’s gross pay.
b.the per capita income minus the inflation rate.
c.money that is earned from stocks and bonds.
d.a worker’s take-home pay.
82.If your income increases 20% in a year in which inflation is 10%, your real income has
a.increased 30%.
b.increased 10%.
c.decreased 30%.
d.decreased 10%.
83.Real income is synonymous with:
a.buying power.
b.deferred spending.
c.recession wages.
d.discretionary expenditures.
84.The real income of most people has actually increased since:
a.the turn of the century.
b.World War I.
c.the Great Depression.
d.World War II.
85.The ____ is the most common indicator used by the popular media to measure price fluctuations.
a.cost of living adjustment
b.federal interest rate
c.consumer price index
d.capital gains tax
86.The consumer price index is based on:
a.up-and-down movements in the stock market.
b.the average cost of food and shelter.
c.middle-class spending patterns.
d.a fixed market basket of goods and services.
87.The consumer price index does not include:
a.automobiles.
b.clothing.
c.taxes.
d.food.
88.Although the nominal prices of most goods have increased, some relative prices have declined. A good example of this is:
a.groceries.
b.computers.
c.automobiles.
d.paper products.
89.A dollar in 2012 is worth about ___________ compared to a dollar in 1947.
a.48 cents
b.$1.08
c.$1.48
d.8 cents
90.All of the following tactics can be used to combat inflation
EXCEPT:
a.minimizing cash holdings.
b.learning about investments.
c.buying as soon as possible.
d.selecting high-yield savings accounts.