Exam 17: Index Numbers

A major disadvantage of the unweighted price index is that ___________________________.

The following data was collected on mutual fund prices. Compute the Paasche price index to compare mutual fund prices in 2010 to 2000.

If the Laspeyres index is 140.78 and the Paasche index is 98.01, what is Fisher's ideal index?

The following data was collected comparing gasoline prices and quantities (millions of gallons). Compute the Laspeyres price index to compare gas prices in 2010 to 2000.

Data for fuel oil and gasoline purchased at wholesale prices for 2006 and 2010 are shown next. What is the value index?

Suppose your annual 2001 salary was $40,000 and your 2006 salary was $52,000. Assume the annual CPI rose from 177.1 to 202.9 during this period of time. What was your real income in 2001?

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

Suppose your annual 2001 salary was $40,000 and your 2006 salary was $52,000. Assume the annual CPI rose from 177.1 to 202.9 during this period of time. What was the purchasing power of the dollar in 2001?

The following data was collected comparing car prices and quantity sold (thousands). Compute the Laspeyres price index to compare car prices in 2010 to 2000.

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

There are several indexes that reflect the overall economic activity in the United States. The federal government puts out an index of leading economic indicators. It includes such diverse economic indicators as stock prices, new orders for plants and equipment, and building permits issued. These indexes are usually referred to as _______________.

If the base value is 100 and the current period value is 250, what is the index for the current period?

When the CPI determines real income it is called the ___________.

The ________ measures the change in the prices of a fixed market basket of goods and services from one time period to another.

The Consumer Price Index (1982-84 = 100) reports a CPI in August 2010 for Rent of Shelter as 239.115. What is the percentage change in the price of Rent of Shelter compared to the base?

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

The 2001 CPI was 171.1 (1982-84 = 100). What is the purchasing power of the dollar relative to the base?

Data for selected fruits purchased at wholesale prices for 2005 and 2009 are shown next. What is Fisher's ideal index?

Data for selected vegetables purchased at wholesale prices for 1995 and 2007 are shown next. What is the simple price relative for carrots?

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 real income in 2009?