Question 1

A weighted aggregate price index where the weight for each item is its current-period quantity is the

Accepted Answer

A)  Aggregate quantity index. 
B)  Laspeyres index. 
C)  Paasche index. 
D)  Quantity index. 
A)  Aggregate quantity index. 
B)  Laspeyres index. 
C)  Paasche index. 
D)  Quantity index. C

Question 2

You are given the following information about items A, B, C, and D.   The Paasche index in 2015 (rounded) is

Accepted Answer

A)  94.958 
B)  97.245 
C)  102.833 
D)  105.309 
A)  94.958 
B)  97.245 
C)  102.833 
D)  105.309 C

Question 3

A weighted aggregate price index where the weight for each item is its base-period quantity is known as the

Accepted Answer

A)  Laspeyres index. 
B)  Paasche index. 
C)  Weight index. 
D)  Quantity index. 
A)  Laspeyres index. 
B)  Paasche index. 
C)  Weight index. 
D)  Quantity index. A

Question 4

You are given the following information about items A, B, C, and D.   The price relative for item A in 2015 (use 2010 as the base year) is

Accepted Answer

A)  1.082 
B)  7 
C)  92.391 
D)  108.235 
A)  1.082 
B)  7 
C)  92.391 
D)  108.235

Question 5

A Composite price index where the prices of the items in the composite are weighted by their relative importance is called the

Accepted Answer

A)  Price relative. 
B)  Weighted aggregate price index. 
C)  Paasche index. 
D)  Quantity index. 
A)  Price relative. 
B)  Weighted aggregate price index. 
C)  Paasche index. 
D)  Quantity index.

Question 6

A monthly price index that uses the price changes in consumer goods and services for measuring the changes in consumer prices over time is known as the

Accepted Answer

A)  Paasche index. 
B)  Consumer Price Index. 
C)  Producer Price Index. 
D)  Laspeyres index. 
A)  Paasche index. 
B)  Consumer Price Index. 
C)  Producer Price Index. 
D)  Laspeyres index.

Question 7

You are given the following information about items A, B, C, and D.   The Laspeyres index in 2015 (rounded) is

Accepted Answer

A)  96.268 
B)  95.9539 
C)  102.833 
D)  103.876 
A)  96.268 
B)  95.9539 
C)  102.833 
D)  103.876

Question 8

The Paasche index is a weighted aggregate price index where the weight for each item is its

Accepted Answer

A)  current-period price. 
B)  current-period quantity. 
C)  base-period price. 
D)  base-period quantity. 
A)  current-period price. 
B)  current-period quantity. 
C)  base-period price. 
D)  base-period quantity.

Question 9

You are given the following information on items A, B, C, and D.   The weighted aggregate quantity index when 2005 is used as the base and prices are used as weights is

Accepted Answer

A)  67.956 
B)  80.123 
C)  300.700 
D)  146.984 
A)  67.956 
B)  80.123 
C)  300.700 
D)  146.984

Question 10

The Laspeyres index is a weighted aggregate price index where the weight for each item is its

Accepted Answer

A)  current-period quantity. 
B)  base-period price. 
C)  current-period price. 
D)  base-period quantity. 
A)  current-period quantity. 
B)  base-period price. 
C)  current-period price. 
D)  base-period quantity.

Question 11

In 1995 the price of a pound of ground beef was $1.25. By 2010, the price had increased to $2.50. The price relative is

Accepted Answer

A)  50 
B)  0.5 
C)  200 
D)  3.125 
A)  50 
B)  0.5 
C)  200 
D)  3.125

Question 12

The price relative is computed by dividing

Accepted Answer

A)  a base-period unit price by a current unit price and multiplying the result by 100. 
B)  a current unit price by a base-period unit price and multiplying the result by 100. 
C)  a current unit price by a base-period unit price and dividing the result by 100. 
D)  current price by quantity. 
A)  a base-period unit price by a current unit price and multiplying the result by 100. 
B)  a current unit price by a base-period unit price and multiplying the result by 100. 
C)  a current unit price by a base-period unit price and dividing the result by 100. 
D)  current price by quantity.

Question 13

The Dow Jones Industrial Average is based on common stock prices of _____ large companies.

Accepted Answer

A)  30 
B)  40 
C)  50 
D)  100 
A)  30 
B)  40 
C)  50 
D)  100

Question 14

The price relative is a price index that is determined by

Accepted Answer

A)  (Price in period t/Base period price)(100). 
B)  (Base period price/Price in period t)(100). 
C)  (Price in period t + Base period price)(100). 
D)  (Price in period t)(100). 
A)  (Price in period t/Base period price)(100). 
B)  (Base period price/Price in period t)(100). 
C)  (Price in period t + Base period price)(100). 
D)  (Price in period t)(100).

Question 15

A price relative was computed for houses. The base period is 2010. The price relative in 2015 was 140. The interpretation of the price relative is that

Accepted Answer

A)  there has been a 140% increase in the price of houses from 2010 to 2015. 
B)  there has been a 40% increase in the price of houses from 2010 to 2015. 
C)  the price of houses in 2015 was $140 higher than the price in 2010. 
D)  It is impossible to interpret the index. 
A)  there has been a 140% increase in the price of houses from 2010 to 2015. 
B)  there has been a 40% increase in the price of houses from 2010 to 2015. 
C)  the price of houses in 2015 was $140 higher than the price in 2010. 
D)  It is impossible to interpret the index.

Question 16

Which of the following indexes is not stated as a percentage of some base-period value?​

Accepted Answer

A)  ​Consumer Price Index 
B)  ​Producer Price Index 
C)  ​Dow Jones Industrial Average 
D)  ​Index of Industrial Production 
A)  ​Consumer Price Index 
B)  ​Producer Price Index 
C)  ​Dow Jones Industrial Average 
D)  ​Index of Industrial Production

Question 17

A quantity index which is designed to measure changes in the physical volume of production levels of industrial goods over time is the

Accepted Answer

A)  Quantity index. 
B)  Producers index. 
C)  Index of Industrial Production. 
D)  Paasche index. 
A)  Quantity index. 
B)  Producers index. 
C)  Index of Industrial Production. 
D)  Paasche index.

Question 18

The prices of an item for the years 2010 through 2015 are given below.   Let 2010 be the base and compute the price relatives for the years 2010 through 2015.

Accepted Answer

The answer of The prices of an item for the...

Question 19

Dow Jones averages are aggregate price indexes reflecting the prices of stocks listed on the

Accepted Answer

A)  American Stock Exchange. 
B)  NASDAQ Exchange. 
C)  New York Stock Exchange. 
D)  Tokyo Stock Exchange. 
A)  American Stock Exchange. 
B)  NASDAQ Exchange. 
C)  New York Stock Exchange. 
D)  Tokyo Stock Exchange.

Question 20

All of the following are true about the Consumer Price Index except​

Accepted Answer

A)  ​it has a base period of 2002-2003. 
B)  ​it is based on a market basket of items. 
C)  ​it includes charges for services (like doctor bills). 
D)  ​it is the primary measure of the cost of living in the U.S. 
A)  ​it has a base period of 2002-2003. 
B)  ​it is based on a market basket of items. 
C)  ​it includes charges for services (like doctor bills). 
D)  ​it is the primary measure of the cost of living in the U.S.

Exam 20: Index Numbers

A weighted aggregate price index where the weight for each item is its current-period quantity is the

You are given the following information about items A, B, C, and D. The Paasche index in 2015 (rounded) is

A weighted aggregate price index where the weight for each item is its base-period quantity is known as the

You are given the following information about items A, B, C, and D. The price relative for item A in 2015 (use 2010 as the base year) is

A Composite price index where the prices of the items in the composite are weighted by their relative importance is called the

A monthly price index that uses the price changes in consumer goods and services for measuring the changes in consumer prices over time is known as the

You are given the following information about items A, B, C, and D. The Laspeyres index in 2015 (rounded) is

The Paasche index is a weighted aggregate price index where the weight for each item is its

You are given the following information on items A, B, C, and D. The weighted aggregate quantity index when 2005 is used as the base and prices are used as weights is

The Laspeyres index is a weighted aggregate price index where the weight for each item is its

In 1995 the price of a pound of ground beef was $1.25. By 2010, the price had increased to $2.50. The price relative is

The price relative is computed by dividing

The Dow Jones Industrial Average is based on common stock prices of _____ large companies.

The price relative is a price index that is determined by

A price relative was computed for houses. The base period is 2010. The price relative in 2015 was 140. The interpretation of the price relative is that

Which of the following indexes is not stated as a percentage of some base-period value?​

A quantity index which is designed to measure changes in the physical volume of production levels of industrial goods over time is the

The prices of an item for the years 2010 through 2015 are given below. Let 2010 be the base and compute the price relatives for the years 2010 through 2015.

Dow Jones averages are aggregate price indexes reflecting the prices of stocks listed on the

All of the following are true about the Consumer Price Index except​

Data and Statistics

Descriptive Statistics: Tabular and Graphical Displays

Descriptive Statistics: Numerical Measures

Introduction to Probability

Discrete Probability Distributions

Continuous Probability Distributions

Sampling and Sampling Distributions

Interval Estimation

Hypothesis Tests

Inference About Means and Proportions With Two Populations

Inferences About Population Variances

Comparing Multiple Proportions, Tests of Independence and Goodness of Fit

Experimental Design and Analysis of Variance

Simple Linear Regression

Multiple Regression

Regression Analysis: Model Building

Time Series Analysis and Forecasting

Nonparametric Methods

Decision Analysis

Statistical Methods for Quality Control

Sample Survey

Filters

Which of the following indexes is not stated as a percentage of some base-period value?

All of the following are true about the Consumer Price Index except