Exam 17: Index Numbers

Suppose your annual 2005 salary was $95,000 and your 2010 salary was $125,000. Assume the annual CPI rose from 177.1 to 215.9 during this period of time. What was the purchasing power of the dollar in 2005?

In terms of a weighted index, what alternatives to weighting are available?

The ___________ method of computing index numbers has the disadvantage that the base period quantities or weights are realistic.

Data for selected fruits purchased at wholesale prices for 2005 and 2009 are shown next. What is the value index?

Two methods of computing a weighted price index are the Laspeyres method and Paasche's method.

The CPI for "educational books and supplies" in June of 2006 was 386.7 (1982-1984 = 100). Interpret this index.

_____ is the symbol used to designate a base period price.

Data for selected vegetables purchased at wholesale prices for 1995 and 2007 are shown next. What is the unweighted aggregate price index?

In 2000, an executive earned $100,000. In 2009, the executive earned $125,000. The CPI in 2000 was 172.2, and the CPI in 2009 was 214.537. Using the CPI base, 1982-1984 = 100, what was the increase in real income from 2000 to 2009?

Suppose your annual 2005 salary was $95,000 and your 2010 salary was $125,000. Assume the annual CPI rose from 177.1 to 215.9 during this period of time. What was your real income in 2010?

Data for selected fruits purchased at wholesale prices for 2005 and 2009 are shown next. What is the Paasche price index?

A weighted price index that uses current-period quantities as weights is known as ______________.

The base year for the Consumer Price Index is _______.

If we divide one dollar by the CPI and multiply this result by 100, the result is called the _________________________.

How can indexes be classified?

Another name for the unweighted method of computing an index is the _________________.

The percent that measures the change in price, quantity, value, or some other item of interest from one time period to another is called the ______________________.

The ________ index is computed using base year prices and quantities and current year prices and quantities together.

How is the purchasing power of the dollar computed?

If the average age was $7.67 per hour in 1998 and $14.90 per hour last month, what is the index of hourly wages for last month based on the 1998 information?