Question 1

The consumer price index is

Accepted Answer

A)  a monthly price index that is designed to measure changes in prices for goods sold in primary markets. 
B)  a quarterly price index that uses 100 as a base. 
C)  a monthly price index that uses the price changes in a market basket of consumer goods and services to measure the changes in consumer prices over time. 
D)  another name for the Paasche index. 
A)  a monthly price index that is designed to measure changes in prices for goods sold in primary markets. 
B)  a quarterly price index that uses 100 as a base. 
C)  a monthly price index that uses the price changes in a market basket of consumer goods and services to measure the changes in consumer prices over time. 
D)  another name for the Paasche index.

Question 2

A composite price index based on the prices of a group of items is known as the

Accepted Answer

A)  Group price relative. 
B)  Aggregate price index. 
C)  Laspeyres index. 
D)  Paasche index. 
A)  Group price relative. 
B)  Aggregate price index. 
C)  Laspeyres index. 
D)  Paasche index.

Question 3

An index that is designed to measure changes in quantities over time is the

Accepted Answer

A)  Aggregate price index. 
B)  Quantity index. 
C)  Relative quantity index. 
D)  Index of Industries. 
A)  Aggregate price index. 
B)  Quantity index. 
C)  Relative quantity index. 
D)  Index of Industries.

Question 4

Consumer Price Index is

Accepted Answer

A)  a weighted aggregate price index where the weight for each item is its current-period quantity. 
B)  a weighted aggregate price index where the weight for each item is its last-period quantity. 
C)  an index that is designed to measure changes in quantities over time. 
D)  an index that is designed to measure changes in production levels over time. 
A)  a weighted aggregate price index where the weight for each item is its current-period quantity. 
B)  a weighted aggregate price index where the weight for each item is its last-period quantity. 
C)  an index that is designed to measure changes in quantities over time. 
D)  an index that is designed to measure changes in production levels over time.

Question 5

The prices for a kilowatt hour of electricity for the years 2013 through 2016 are given below.   Determine the price relatives for the years 2013 through 2016. Let 2013 be the base.

Accepted Answer

The answer of The prices for a kilowatt hour of...

Question 6

You are given the following information about items X, Y, and Z.   \The price relative for item Y is

Accepted Answer

A)  70.83 
B)  1.50 
C)  40.00 
D)  141.18 
A)  70.83 
B)  1.50 
C)  40.00 
D)  141.18

Question 7

You are given the following information about items X, Y, and Z.   The unweighted aggregate price index for 2015 is

Accepted Answer

A)  80 
B)  121.95 
C)  1.25 
D)  0.80 
A)  80 
B)  121.95 
C)  1.25 
D)  0.80

Question 8

The quantity index is an index that is designed to measure changes in _____ over time.

Accepted Answer

A)  production levels 
B)  consumption levels 
C)  quantity 
D)  price 
A)  production levels 
B)  consumption levels 
C)  quantity 
D)  price

Question 9

You are given the following information about items A, B, C, and D.   The weighted aggregate price index in 2015 is

Accepted Answer

A)  1.084 
B)  92.292 
C)  108.898 
D)  109.203 
A)  1.084 
B)  92.292 
C)  108.898 
D)  109.203

Question 10

Aggregate price indexes reflecting the prices of stocks listed on the New York Stock Exchange are

Accepted Answer

A)  Stock Exchange indexes. 
B)  Indexes of Industrial Production. 
C)  Producer price indexes. 
D)  Dow Jones averages. 
A)  Stock Exchange indexes. 
B)  Indexes of Industrial Production. 
C)  Producer price indexes. 
D)  Dow Jones averages.

Question 11

You are given the following information about items X, Y, and Z.   The weighted aggregate price index for 2015 is

Accepted Answer

A)  120.10 
B)  11.201 
C)  12.10 
D)  120 
A)  120.10 
B)  11.201 
C)  12.10 
D)  120

Question 12

The Consumer Price Index is based on the price-quantity characteristics of _____ items.

Accepted Answer

A)  50 
B)  100 
C)  400 
D)  800 
A)  50 
B)  100 
C)  400 
D)  800

Question 13

The reason weights are used in an aggregate index is to

Accepted Answer

A)  ensure that all items have an influence on the index which is relative to their respective importance. 
B)  ensure that expensive items are considered more heavily. 
C)  ensure that current prices will influence the index more than base prices. 
D)  None of these alternatives is correct. 
A)  ensure that all items have an influence on the index which is relative to their respective importance. 
B)  ensure that expensive items are considered more heavily. 
C)  ensure that current prices will influence the index more than base prices. 
D)  None of these alternatives is correct.

Question 14

A monthly price index that is designed to measure changes in prices of goods sold in primary markets (i.e., first purchase of a commodity in non-retail markets) is the

Accepted Answer

A)  Consumer Price Index. 
B)  Producer Price Index. 
C)  Dow Jones Average. 
D)  Weighted aggregate price index. 
A)  Consumer Price Index. 
B)  Producer Price Index. 
C)  Dow Jones Average. 
D)  Weighted aggregate price index.

Question 15

A price index for a given item which is computed by dividing a current unit price by a base-period unit price and multiplying the result by 100 is known as the

Accepted Answer

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

Question 16

Whenever we remove the price increase effect from a time series, we say we are _____ the series.

Accepted Answer

A)  weighting 
B)  price fixing 
C)  deflating 
D)  disaggregating 
A)  weighting 
B)  price fixing 
C)  deflating 
D)  disaggregating

Question 17

A common use of the Producer Price Index is as a leading indicator of the future trend of _____ prices.

Accepted Answer

A)  raw material 
B)  consumer 
C)  industrial stock 
D)  wholesale market 
A)  raw material 
B)  consumer 
C)  industrial stock 
D)  wholesale market

Question 18

The value given to a base-period price is

Accepted Answer

A)  1.00 
B)  the actual price in the base period. 
C)  100 
D)  any value larger than 1.00. 
A)  1.00 
B)  the actual price in the base period. 
C)  100 
D)  any value larger than 1.00.

Question 19

You are given the following information about items A, B, C, and D.   The unweighted aggregate price index in 2015 is

Accepted Answer

A)  1.092 
B)  91.573 
C)  108.352 
D)  109.203 
A)  1.092 
B)  91.573 
C)  108.352 
D)  109.203

Exam 20: Index Numbers

The consumer price index is

A composite price index based on the prices of a group of items is known as the

An index that is designed to measure changes in quantities over time is the

Consumer Price Index is

The prices for a kilowatt hour of electricity for the years 2013 through 2016 are given below. Determine the price relatives for the years 2013 through 2016. Let 2013 be the base.

You are given the following information about items X, Y, and Z. \The price relative for item Y is

You are given the following information about items X, Y, and Z. The unweighted aggregate price index for 2015 is

The quantity index is an index that is designed to measure changes in _____ over time.

You are given the following information about items A, B, C, and D. The weighted aggregate price index in 2015 is

Aggregate price indexes reflecting the prices of stocks listed on the New York Stock Exchange are

You are given the following information about items X, Y, and Z. The weighted aggregate price index for 2015 is

The Consumer Price Index is based on the price-quantity characteristics of _____ items.

The reason weights are used in an aggregate index is to

A monthly price index that is designed to measure changes in prices of goods sold in primary markets (i.e., first purchase of a commodity in non-retail markets) is the

A price index for a given item which is computed by dividing a current unit price by a base-period unit price and multiplying the result by 100 is known as the

Whenever we remove the price increase effect from a time series, we say we are _____ the series.

A common use of the Producer Price Index is as a leading indicator of the future trend of _____ prices.

The value given to a base-period price is

You are given the following information about items A, B, C, and D. The unweighted aggregate price index in 2015 is

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

You are given the following information about items X, Y, and Z. $You are given the following information about items X, Y, and Z. \The price relative for item Y is$ \The price relative for item Y is