Consumer Price Index (CPI) Quiz

What is the purpose of the Consumer Price Index (CPI)?

• To calculate the GDP of a country

• To measure the rate of inflation by tracking changes in the prices of commonly used products

• To determine the unemployment rate

• To track changes in stock market prices

Approximately how many products are sampled each month to calculate the CPI?

• 100

• 200

• 300

• 400

What does the term "Full Employment" signify according to John Maynard Keynes?

• Everyone in the economy earns above a certain income level.

• Anyone who wants a job can find one.

• Unemployment rates are below 5%.

• All industries are operating at maximum capacity.

Which group of people is NOT counted when calculating the unemployment rate?

• Those who are actively looking for jobs and are able to work

• Children

• Retired people

• People who have given up looking for a job

Which of the following individuals would be included in the unemployment rate calculation?

• A retired individual

• A student not seeking employment

• A parent who stays at home by choice

• A person who is actively looking for work and is able to work

What is the civilian labor force?

• People in the military

• All civilians 16 years old and older who are either working or looking for work

• Only people who are currently employed

• Business owners only

What does the unemployment rate indicate about the economy?

• The literacy rate of the country

• The health of the economy

• The population growth rate

• The level of technological advancement

What action do people commonly take when they lose their jobs?

• Increase their spending

• Invest more in stocks

• Cut back on their purchases

• Travel more frequently

What causes cyclical unemployment?

• A) A downturn in the economy

• B) Increase in consumer demand

• C) Government policy changes

• D) Technological advancements

What typically happens to company hiring during economic upturns?

• A) Companies cut production

• B) Companies hire more workers

• C) Companies reduce workforce

• D) Companies outsource more