Top 350+ Solved Information systems and engineering economics MCQ Questions Answer

Q. ____________ is a loss in the purchasing power of money over time.

a. inflation

b. deflation

Q. The same dollar amount buys less of an item over time is ____________

a. inflation

b. deflation

Q. Consumer Price Index (CPI) Measures prices of typical purchases made by consumers, based on a typical market basket of goods and services required by average consumers

a. true

b. false

Q. CPI does not take into the account the price of raw material, finished product and operating cost

a. true

b. false

Q. PPI measures average change over a time in selling prices by domestic producers of goods and services.

a. true

b. false

Q. Inflation rate is defined as the rate at which the cost general level of goods and services increases resulting in decreases of purchasing power of goods and services.

a. true

b. false

Q. _________ rate is defined as the rate at which the cost general level of goods and services increases resulting in decreases of purchasing power of goods and services.

a. deflation

b. inflation

Q. Actual (current) dollars (An)is the dollar value that is “influenced” by inflation.

a. true

b. false

Q. Actual (current) dollars (An)is the dollar value that is “influenced” by _____________.

a. deflation

b. inflation

Q. ____ dollars is the dollar value that is “influenced” by inflation.

a. actual

b. constant

Q. Constant (real) dollars reflect constant purchasing power independent of the passage of time

a. true

b. false

Q. The current gasoline price is $4.15, and it is projected to increase next year by 5%, and 8% the following year, and -3% the third year. What is the average inflation rate for the projected gasoline price for the next 3 years?

a. 0.0323

b. 0.0333

c. 0.0533

d. 0.03

Q. If the inflation rate is 6% per year and the market interest rate is known to be 15% per year. What is the implied real interest rate in this inflationary economy?

a. 0.1145

b. 0.09

c. 0.08

d. 0.0849

Q. If you experience a 6 % annual inflation, how long does it take to see the purchasing power being reduced in half?

a. 13 years

b. 10 years

c. 12 years

d. 11years

Q. The CPI for 2000 was 171.2 and the projected CPI for 2008 is 220. What is the general inflation rate over the last 8 years?

a. 0.0365

b. 0.061

c. 0.0318

d. 0.0283

Top 350+ Solved Information systems and engineering economics MCQ Questions Answer

From 316 to 330 of 371

Q. ____________ is a loss in the purchasing power of money over time.

Q. The same dollar amount buys less of an item over time is ____________

Q. Consumer Price Index (CPI) Measures prices of typical purchases made by consumers, based on a typical market basket of goods and services required by average consumers

Q. CPI does not take into the account the price of raw material, finished product and operating cost

Q. PPI measures average change over a time in selling prices by domestic producers of goods and services.

Q. Inflation rate is defined as the rate at which the cost general level of goods and services increases resulting in decreases of purchasing power of goods and services.

Q. _________ rate is defined as the rate at which the cost general level of goods and services increases resulting in decreases of purchasing power of goods and services.

Q. Actual (current) dollars (An)is the dollar value that is “influenced” by inflation.

Q. Actual (current) dollars (An)is the dollar value that is “influenced” by _____________.

Q. ____ dollars is the dollar value that is “influenced” by inflation.

Q. Constant (real) dollars reflect constant purchasing power independent of the passage of time

Q. The current gasoline price is $4.15, and it is projected to increase next year by 5%, and 8% the following year, and -3% the third year. What is the average inflation rate for the projected gasoline price for the next 3 years?

Q. If the inflation rate is 6% per year and the market interest rate is known to be 15% per year. What is the implied real interest rate in this inflationary economy?

Q. If you experience a 6 % annual inflation, how long does it take to see the purchasing power being reduced in half?

Q. The CPI for 2000 was 171.2 and the projected CPI for 2008 is 220. What is the general inflation rate over the last 8 years?

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