Exam 16: The Consumer Price Index and Government Statistics

Having taken statistics, you know that a graph that shows how the cost of attending your school has increased since 1980 should show the cost in real terms. To do this, you will

There are separate CPIs for various components of the market basket. For example, the CPI for new motor vehicles (1982-84 = 100) was 132.4 in 2008. If there were adjustments in the new motor vehicle index due to quality improvements , would the actual increase in new motor vehicle prices be greater, smaller, or the same as in the previous question?

A gallon of milk cost $2.48 in 1995, while a gallon of milk cost $3.73 in 2016. Using 1995 as the base year, what is the gallon of milk index number for 2016?

The price per pound of iceberg lettuce has fluctuated quite a bit over the last few years. Here it is in dollars, from 2004 to 2012: In which of these years was the Iceberg Lettuce Index Number (2004 = 100) equal to 114.4?

In the good old days (1986), the U.S. dollar was worth 1.85 Swiss Francs. Over two decades later in 2012, the dollar was worth 0.91 Swiss Francs. The value of the dollar in Swiss Francs went down by about

There are separate CPIs for various components of the market basket. For example, the CPI for new motor vehicles (1982-84 = 100) was 132.4 in 2008. If there were no adjustments for quality improvements, then how much did new motor vehicle prices increase from the base period to 2008?

You have decided to buy a yacht, specifically, a Nautor's Swan 68 sailing yacht. This lovely boat cost $384,300 in 1976, when the CPI was 57. The CPI at the beginning of 2000 was about 168, and the yacht then cost $2,300,000. What is the 1976 yacht price expressed in 2000 dollars?

A gallon of unleaded gasoline cost $1.15 in 1995 (CPI = 152.4), while a gallon of gasoline cost $1.99 in 2016 (CPI = 237.1). What amount in 2016 has the same buying power as $1.15 in 1995?

The governments of all developed nations produce large volumes of data on economic and social issues. Canada, like most countries, has a single national statistical office (Statistics Canada) that is responsible for these data. In the United States,

The breakfast fixed market basket consists of one gallon of milk, one pound of sliced bacon, and one dozen eggs. In 1995, the gallon of milk cost $2.48, the pound of sliced bacon cost $1.99, and the dozen eggs cost $0.93. In 2011, the gallon of milk cost $3.57, the pound of sliced bacon cost $4.63, and the dozen eggs cost $1.77. What is the breakfast fixed market basket price index in 2011 using 1995 as the base year?

A recent monthly press release on the Consumer Price Index says: "The Consumer Price Index for All Urban Consumers (CPI-U) dropped 0.1 percent in August, before seasonal adjustment, to a level of 218.8 (1982-84 = 100), the Bureau of Labor Statistics of the U.S. Department of Labor reported today." The CPI was 208.5 in September 2007 and 218.8 in September, 2008. By what percent did the CPI increase in this 12-month period?

When Julie entered college in 2011, she dreamed of making $50,000 when she graduated. The CPI in 2011 was 226.4. Julie graduated in 2016. (Thinking about money rather than studies slowed her progress a bit.) The 2016 CPI was 237.1. What must Julie earn in order to have the same buying power that $50,000 had in 2011?

The average price of a pound of bananas was 36.2 cents in 1981 and 59.0 cents in 2016. What is the bananas index number (1981 = 100) for 2016?

If the Consumer Price Index (1982-1984 = 100) is 237.1, this means that:

The 2008 CPI (1982-84 = 100) was 218.8 but the component of the CPI for personal computers was 92.9. There were great improvements in quality and features in personal computers between 1982-84 and 2008. We can say that

A pair of ballet slippers cost $35.00 in 1990; a pair of the same type of slippers costs $105.00 in 2008. Using 1990 as the base year, what is the ballet slipper index number for 2008?

A recent monthly press release on the Consumer Price Index says: "The Consumer Price Index for All Urban Consumers (CPI-U) dropped 0.1 percent in August, before seasonal adjustment, to a level of 218.8 (1982-84 = 100), the Bureau of Labor Statistics of the U.S. Department of Labor reported today." What does "1982-84 = 100" mean here?

A gallon of unleaded gasoline cost $1.15 in 1995 (CPI = 152.4), while a gallon of gasoline cost $1.99 in 2016 (CPI = 237.1). After correcting for inflation, has the value of a gallon of unleaded gasoline changed from 1995 to 2016?

To graphically show how the Consumer Price Index has changed over the last 50 years, one should draw a

Suppose the CPI (Consumer Price Index) with respect to some unknown base period was 89 in 1985, 115 in 1990, and 127 in 1993. The CPI rose steadily during this period. The base period used