Exam 17: Index Numbers

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

Exhibit 17-4 -Refer to Exhibit 17-4.The Laspeyres index in 2010 is (rounded)

An automobile dealership sells 3 different types of automobiles.Unit prices for the years 2005 and 2010 are shown below. Compute an unweighted aggregate price index for the automobiles.

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

Exhibit 17-1 You are given the following information about items A,B,C,and D. -Refer to Exhibit 17-1.The weighted aggregate price index in 2010 is

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

Consumer Price Index is

The prices of 3 products for the years 2007 and 2010 are shown below. Compute an unweighted aggregate price index for the products.

The yearly incomes of a college graduate for the years 2007 through 2010 and the Consumer Price Index are shown below. a.Use the Consumer Price Index to deflate the yearly income series. b.Compare the individual's income to his/her real income for the years 2009 and 2010.Comment on your findings.

Consider the following information regarding items A,B,C,and D. a.Compute the price relative index for 2010 using 2005 as the base year. b.Compute the unweighted aggregate price index. c.Compute the Laspeyres index. d.Compute the Paasche index. e.Construct a weighted aggregate quantity index using 2005 as the base year and price as the weight.

The price relative is computed by dividing

Exhibit 17-4 -Refer to Exhibit 17-4.The price relative for item A in 2010 (with 2005 as the base year)is (rounded)