while in others, it is allowed under specific conditions. The legal frameworks in place are often reactive,
as the pace of biotechnological advancements often outpaces the development of appropriate legal
standards.#### 10.2 **Stem Cell Research**Stem cell research, particularly the use of embryonic stem
cells, has been a controversial ethical issue for many years. The potential for stem cells to treat or cure a
variety of diseases raises significant hope in the medical community. However, the ethical issue arises
from the use of human embryos in research, as some argue that it is morally wrong to destroy embryos
for the purpose of scientific experimentation.Legally, stem cell research is subject to varying levels of
regulation. In
Test Bank for
Principles of Economics Comprehensive Q&A Guide
Measuring the Cost of Living
Multiple Choice – Section 00: Introduction
1. Babe Ruth, the famous baseball player, earned $80,000 in 1931. Today, the best baseball players can earn
more than 400 times as much as Babe Ruth earned in 1931. However, prices have also risen since 1931. We
can conclude that
a. the best baseball players today are about 400 times better off than Babe Ruth was in 1931.
b. because prices have also risen, the standard of living of baseball stars hasn't changed since 1931.
c. one cannot make judgments about changes in the standard of living based on changes in prices and changes
in incomes.
d. one cannot determine whether baseball stars today enjoy a higher standard of living than Babe Ruth did in
1931 without additional information regarding increases in prices since 1931.
ANSWER: d
POINTS: 1
DIFFICULTY: Moderate
LEARNING OBJECTIVES: ECON.MANK.15.117 - LO: 24-0
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: DISC:Price Level Concepts Inflation
KEYWORDS: BLOOM'S: Comprehension
2. The consumer price index is used to
a. monitor changes in the level of wholesale prices in the economy.
b. monitor changes in the cost of living over time.
c. monitor changes in the level of real GDP over time.
d. monitor changes in the stock market.
ANSWER: b
POINTS: 1
DIFFICULTY: Easy
LEARNING OBJECTIVES: ECON.MANK.15.117 - LO: 24-0
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: DISC:Price Level Concepts Consumer Price Index
KEYWORDS: BLOOM'S: Knowledge
, 3. The consumer price index is used to
a. convert nominal GDP into real GDP.
b. turn dollar figures into meaningful measures of purchasing power.
c. characterize the types of goods and services that consumers purchase.
d. measure the quantity of goods and services that the economy produces.
ANSWER: b
POINTS: 1
DIFFICULTY: Easy
LEARNING OBJECTIVES: ECON.MANK.15.117 - LO: 24-0
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: DISC:Price Level Concepts Consumer Price Index
KEYWORDS: BLOOM'S: Knowledge
while in others, it is allowed under specific conditions. The legal frameworks in place are often reactive, as
the pace of biotechnological advancements often outpaces the development of appropriate legal
standards.#### 10.2 **Stem Cell Research**Stem cell research, particularly the use of embryonic stem cells,
has been a controversial ethical issue for many years. The potential for stem cells to treat or cure a variety of
diseases raises significant hope in the medical community. However, the ethical issue arises from the use of
human embryos in research, as some argue that it is morally wrong to destroy embryos for the purpose of
scientific experimentation.Legally, stem cell research is subject to varying levels of regulation. In
4. Which of the following is not correct?
a. The consumer price index gives economists a way of turning dollar figures into meaningful
measures of purchasing power.
b. The consumer price index is used to monitor changes in the cost of living over time.
c. The consumer price index is used by economists to measure the inflation rate.
d. The consumer price index is used to measure the quantity of goods and services that the
economy is producing.
ANSWER: d
POINTS: 1
DIFFICULTY: Moderate
LEARNING OBJECTIVES: ECON.MANK.15.117 - LO: 24-0
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: DISC:Price Level Concepts Consumer Price Index
KEYWORDS: BLOOM'S: Comprehension
, 5. When the consumer price index rises, the typical family
a. has to spend more dollars to maintain the same standard of living.
b. can spend fewer dollars to maintain the same standard of living.
c. finds that its standard of living is not affected.
d. can offset the effects of rising prices by saving more.
ANSWER: a
POINTS: 1
DIFFICULTY: Easy
LEARNING OBJECTIVES: ECON.MANK.15.117 - LO: 24-0
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: DISC:Price Level Concepts Consumer Price Index
KEYWORDS: BLOOM'S: Knowledge
while in others, it is allowed under specific conditions. The legal frameworks in place are often
reactive, as the pace of biotechnological advancements often outpaces the development of
appropriate legal standards.#### 10.2 **Stem Cell Research**Stem cell research, particularly the
use of embryonic stem cells, has been a controversial ethical issue for many years. The potential
for stem cells to treat or cure a variety of diseases raises significant hope in the medical
community. However, the ethical issue arises from the use of human embryos in research, as
some argue that it is morally wrong to destroy embryos for the purpose of scientific
experimentation.Legally, stem cell research is subject to varying levels of regulation. In
6. When the consumer price index falls, the typical family
a. has to spend more dollars to maintain the same standard of living.
b. can spend fewer dollars to maintain the same standard of living.
c. finds that its standard of living is not affected.
d. can save less because they do not need to offset the effects of rising prices.
ANSWER: b
POINTS: 1
DIFFICULTY: Moderate
LEARNING OBJECTIVES: ECON.MANK.15.117 - LO: 24-0
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: DISC:Price Level Concepts Consumer Price Index
KEYWORDS: BLOOM'S: Comprehension
, 7. Economists use the term inflation to describe a situation in which
a. some prices are rising faster than others.
b. the economy's overall price level is rising.
c. the economy's overall price level is high, but not necessarily rising.
d. the economy's overall output of goods and services is rising faster than the economy's overall
price level.
ANSWER: b
POINTS: 1
DIFFICULTY: Easy
LEARNING OBJECTIVES: ECON.MANK.15.117 - LO: 24-0
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: DISC:Price Level Concepts Inflation
KEYWORDS: BLOOM'S: Knowledge
while in others, it is allowed under specific conditions. The legal frameworks in place are often reactive, as th
pace of biotechnological advancements often outpaces the development of appropriate legal standards.####
10.2 **Stem Cell Research**Stem cell research, particularly the use of embryonic stem cells, has been a
controversial ethical issue for many years. The potential for stem cells to treat or cure a variety of diseases
raises significant hope in the medical community. However, the ethical issue arises from the use of human
embryos in research, as some argue that it is morally wrong to destroy embryos for the purpose of scientific
experimentation.Legally, stem cell research is subject to varying levels of regulation. In
8. The term inflation is used to describe a situation in which
a. the overall level of prices in the economy is increasing.
b. incomes in the economy are increasing.
c. stock-market prices are rising.
d. the economy is growing rapidly.
ANSWER: a
POINTS: 1
DIFFICULTY: Easy
LEARNING OBJECTIVES: ECON.MANK.15.117 - LO: 24-0
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: DISC:Price Level Concepts Inflation
KEYWORDS: BLOOM'S: Knowledge
as the pace of biotechnological advancements often outpaces the development of appropriate legal
standards.#### 10.2 **Stem Cell Research**Stem cell research, particularly the use of embryonic stem
cells, has been a controversial ethical issue for many years. The potential for stem cells to treat or cure a
variety of diseases raises significant hope in the medical community. However, the ethical issue arises
from the use of human embryos in research, as some argue that it is morally wrong to destroy embryos
for the purpose of scientific experimentation.Legally, stem cell research is subject to varying levels of
regulation. In
Test Bank for
Principles of Economics Comprehensive Q&A Guide
Measuring the Cost of Living
Multiple Choice – Section 00: Introduction
1. Babe Ruth, the famous baseball player, earned $80,000 in 1931. Today, the best baseball players can earn
more than 400 times as much as Babe Ruth earned in 1931. However, prices have also risen since 1931. We
can conclude that
a. the best baseball players today are about 400 times better off than Babe Ruth was in 1931.
b. because prices have also risen, the standard of living of baseball stars hasn't changed since 1931.
c. one cannot make judgments about changes in the standard of living based on changes in prices and changes
in incomes.
d. one cannot determine whether baseball stars today enjoy a higher standard of living than Babe Ruth did in
1931 without additional information regarding increases in prices since 1931.
ANSWER: d
POINTS: 1
DIFFICULTY: Moderate
LEARNING OBJECTIVES: ECON.MANK.15.117 - LO: 24-0
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: DISC:Price Level Concepts Inflation
KEYWORDS: BLOOM'S: Comprehension
2. The consumer price index is used to
a. monitor changes in the level of wholesale prices in the economy.
b. monitor changes in the cost of living over time.
c. monitor changes in the level of real GDP over time.
d. monitor changes in the stock market.
ANSWER: b
POINTS: 1
DIFFICULTY: Easy
LEARNING OBJECTIVES: ECON.MANK.15.117 - LO: 24-0
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: DISC:Price Level Concepts Consumer Price Index
KEYWORDS: BLOOM'S: Knowledge
, 3. The consumer price index is used to
a. convert nominal GDP into real GDP.
b. turn dollar figures into meaningful measures of purchasing power.
c. characterize the types of goods and services that consumers purchase.
d. measure the quantity of goods and services that the economy produces.
ANSWER: b
POINTS: 1
DIFFICULTY: Easy
LEARNING OBJECTIVES: ECON.MANK.15.117 - LO: 24-0
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: DISC:Price Level Concepts Consumer Price Index
KEYWORDS: BLOOM'S: Knowledge
while in others, it is allowed under specific conditions. The legal frameworks in place are often reactive, as
the pace of biotechnological advancements often outpaces the development of appropriate legal
standards.#### 10.2 **Stem Cell Research**Stem cell research, particularly the use of embryonic stem cells,
has been a controversial ethical issue for many years. The potential for stem cells to treat or cure a variety of
diseases raises significant hope in the medical community. However, the ethical issue arises from the use of
human embryos in research, as some argue that it is morally wrong to destroy embryos for the purpose of
scientific experimentation.Legally, stem cell research is subject to varying levels of regulation. In
4. Which of the following is not correct?
a. The consumer price index gives economists a way of turning dollar figures into meaningful
measures of purchasing power.
b. The consumer price index is used to monitor changes in the cost of living over time.
c. The consumer price index is used by economists to measure the inflation rate.
d. The consumer price index is used to measure the quantity of goods and services that the
economy is producing.
ANSWER: d
POINTS: 1
DIFFICULTY: Moderate
LEARNING OBJECTIVES: ECON.MANK.15.117 - LO: 24-0
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: DISC:Price Level Concepts Consumer Price Index
KEYWORDS: BLOOM'S: Comprehension
, 5. When the consumer price index rises, the typical family
a. has to spend more dollars to maintain the same standard of living.
b. can spend fewer dollars to maintain the same standard of living.
c. finds that its standard of living is not affected.
d. can offset the effects of rising prices by saving more.
ANSWER: a
POINTS: 1
DIFFICULTY: Easy
LEARNING OBJECTIVES: ECON.MANK.15.117 - LO: 24-0
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: DISC:Price Level Concepts Consumer Price Index
KEYWORDS: BLOOM'S: Knowledge
while in others, it is allowed under specific conditions. The legal frameworks in place are often
reactive, as the pace of biotechnological advancements often outpaces the development of
appropriate legal standards.#### 10.2 **Stem Cell Research**Stem cell research, particularly the
use of embryonic stem cells, has been a controversial ethical issue for many years. The potential
for stem cells to treat or cure a variety of diseases raises significant hope in the medical
community. However, the ethical issue arises from the use of human embryos in research, as
some argue that it is morally wrong to destroy embryos for the purpose of scientific
experimentation.Legally, stem cell research is subject to varying levels of regulation. In
6. When the consumer price index falls, the typical family
a. has to spend more dollars to maintain the same standard of living.
b. can spend fewer dollars to maintain the same standard of living.
c. finds that its standard of living is not affected.
d. can save less because they do not need to offset the effects of rising prices.
ANSWER: b
POINTS: 1
DIFFICULTY: Moderate
LEARNING OBJECTIVES: ECON.MANK.15.117 - LO: 24-0
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: DISC:Price Level Concepts Consumer Price Index
KEYWORDS: BLOOM'S: Comprehension
, 7. Economists use the term inflation to describe a situation in which
a. some prices are rising faster than others.
b. the economy's overall price level is rising.
c. the economy's overall price level is high, but not necessarily rising.
d. the economy's overall output of goods and services is rising faster than the economy's overall
price level.
ANSWER: b
POINTS: 1
DIFFICULTY: Easy
LEARNING OBJECTIVES: ECON.MANK.15.117 - LO: 24-0
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: DISC:Price Level Concepts Inflation
KEYWORDS: BLOOM'S: Knowledge
while in others, it is allowed under specific conditions. The legal frameworks in place are often reactive, as th
pace of biotechnological advancements often outpaces the development of appropriate legal standards.####
10.2 **Stem Cell Research**Stem cell research, particularly the use of embryonic stem cells, has been a
controversial ethical issue for many years. The potential for stem cells to treat or cure a variety of diseases
raises significant hope in the medical community. However, the ethical issue arises from the use of human
embryos in research, as some argue that it is morally wrong to destroy embryos for the purpose of scientific
experimentation.Legally, stem cell research is subject to varying levels of regulation. In
8. The term inflation is used to describe a situation in which
a. the overall level of prices in the economy is increasing.
b. incomes in the economy are increasing.
c. stock-market prices are rising.
d. the economy is growing rapidly.
ANSWER: a
POINTS: 1
DIFFICULTY: Easy
LEARNING OBJECTIVES: ECON.MANK.15.117 - LO: 24-0
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: DISC:Price Level Concepts Inflation
KEYWORDS: BLOOM'S: Knowledge
