Study Hall Econ. - Cost to Be Alive (CPI)?

What kind of adjustments does the government make to help Grandma Glenna?

• Food adjustments

• Tax adjustments

• Cost-of-living adjustments

• Housing adjustments

The amount you need to spend to maintain your lifestyle is known as your ______. It includes the necessities, like food, water, shelter, education, transportation, and  medical care, plus some fun little extras that we want to spend our money on. 

• monthly budget
• financial plan
• cost of living
• disposable income

BLS is an abbreviation for what government agency that provides data and analysis about the U.S. economy and labor market to the government.

• Bureau of Long Economic Study

• Business of Labor Survey

• Big Loan Summary

• Bureau of Labor Statistics

What does CPI stand for?

• Consumer Price Index
• Cost Price Index
• Consumer Positivity Indicator

• Capital Prediction Index

CPI can also be used to adjust minimum wage by giving the government an idea of how much per hour a worker would have to make in order to support themselves working full time, what’s known as a _______.

• base salary
• fair pay

• living wage
• wants to survive

When the BLS goes about finding the CPI, they don’t calculate the prices of all goods purchased by all households. To keep  things simple, they work off of a select group of 80,000 specific commonly purchased goods and  services each month, known as the ______.

• consumer report
• price index
• inflation gauge
• market basket

What does the term "substitution bias" refer to?

• Preferences for digital goods

• The BLS's inability to track new trends

• Consumers opting for cheaper alternatives

• Economic downturn effects

What is one of the flaws of CPI mentioned in the video?

• It includes too much data

• It does not account for new goods

• It ignores rural households

• It focuses only on luxury items

According to the video, how is the market basket is a little bit like your parents?

• It's a physical object like a shopping cart.

• it has no influence on your preferences.

• It's always behind or playing catch up to current trends.

• It only reflects individual choices, not collective ones.

According to the video, what is the CPI is "pretty darn good at answering?"

• Stock market trends in the future

• What stuff costs compared to in the past

• Unemployment rates in the U.S.

• Future consumer spending habits