Question 1

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

Accepted Answer

A) Laspeyres index 
B) Paasche index 
C) Weight index 
D) Quantity index

Question 2

A computer equipment dealer sells three types of printers: Laser I, Laser II, and Laser III. The prices of these printers for the years 2005 and 2010 are given below.  
a.Compute an unweighted aggregate price index for the printers. Let 2005 be the base period.
b.Interpret the meaning of the value that you found in Part

Accepted Answer

The answer of A computer equipment dealer sells three types...

Question 3

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

Accepted Answer

A) 80.015 
B) 80.880 
C) 123.639 
D) 124.976

Question 4

Exhibit 17-1
You are given the following information about items A, B, C, and D. 
-Refer to Exhibit 17-1. The price relative for item A in 2010 (use 2005 as the base year) is

Accepted Answer

A) 1.082 
B) 7 
C) 92.391 
D) 108.235

Question 5

A Composite price index where the prices of the items in the composite are weighted by their relative importance is called the

Accepted Answer

A) Price relative 
B) Weighted aggregate price index 
C) Paasche index 
D) Quantity index

Question 6

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) Price relative

Question 7

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

Accepted Answer

A) Aggregate quantity index 
B) Laspeyres index 
C) Paasche index 
D) Quantity index

Question 8

The quantity index is an index that is designed to measure changes in

Accepted Answer

A) the ratio of quantity divided by price over time 
B) the ratio of price divided by quantity over time 
C) quantity over time 
D) price over time

Question 9

A monthly price index that uses the price changes in consumer goods and services for measuring the changes in consumer prices over time is known as the

Accepted Answer

A) Paasche Index 
B) Consumer Price Index 
C) Producer Price Index 
D) Laspeyres Index

Question 10

The prices of dining room tables, sofas, and entertainment centers at a furniture store for the years 2005 and 2010 are shown below.  
a.Compute an unweighted aggregate price index. Let 2005 be the base period.
b.Interpret the meaning of the value that you found in Part

Accepted Answer

The answer of The prices of dining room tables, sofas,...

Question 11

Exhibit 17-2
You are given the following information about items X, Y, and Z. 
-Refer to Exhibit 17-2. The weighted aggregate price index for 2010 is

Accepted Answer

A) 163.768 
B) 1.637 
C) 63.768 
D) 2.2

Question 12

The prices of 3 products for the years 2010 and 2013 are shown below.  Compute an unweighted aggregate price index for the products.

Accepted Answer

The answer of The prices of 3 products for the...

Question 13

The Paasche index is a weighted aggregate price index where the weight for each item is its

Accepted Answer

A) current-period price 
B) current-period quantity 
C) base-period price 
D) base-period quantity

Question 14

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

Question 15

A price relative was computed for houses. The base period is 2005. The price relative in 2010 was 130. The interpretation of the price relative is that

Accepted Answer

A) there has been a 130% increase in the price of houses from 2005 to 2010. 
B) there has been a 30% increase in the price of houses from 2005 to 2010. 
C) the price of houses in 2010 was $130 higher than the price in 2005. 
D) It is impossible to interpret the index.

Question 16

An automobile dealership sells 3 different types of automobiles. Unit prices and the number of units sold in 2005, as well as prices for 2010, are shown below.  Compute a weighted aggregate price index (Laspeyres index) for 2010 with 2005 as the base period. Explain your results.

Accepted Answer

The answer of An automobile dealership sells 3 different types...

Question 17

Exhibit 17-3
You are given the following information about items A, B, C, and D. 
-Refer to Exhibit 17-3. The Paasche index in 2010 (rounded) is

Accepted Answer

A) 96.268 
B) 97.245 
C) 102.833 
D) 103.876

Question 18

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

Accepted Answer

A) 67.956 
B) 80 
C) 125 
D) 147.154

Question 19

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.

Accepted Answer

The answer of The yearly incomes of a college graduate...

Question 20

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

Exam 20: Index Numbers

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

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

Exhibit 17-1 You are given the following information about items A, B, C, and D. -Refer to Exhibit 17-1. The price relative for item A in 2010 (use 2005 as the base year) is

A Composite price index where the prices of the items in the composite are weighted by their relative importance is called the

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 weighted aggregate price index where the weight for each item is its current-period quantity is the

The quantity index is an index that is designed to measure changes in

A monthly price index that uses the price changes in consumer goods and services for measuring the changes in consumer prices over time is known as the

The prices of dining room tables, sofas, and entertainment centers at a furniture store for the years 2005 and 2010 are shown below. a.Compute an unweighted aggregate price index. Let 2005 be the base period. b.Interpret the meaning of the value that you found in Part

Exhibit 17-2 You are given the following information about items X, Y, and Z. -Refer to Exhibit 17-2. The weighted aggregate price index for 2010 is

The prices of 3 products for the years 2010 and 2013 are shown below. Compute an unweighted aggregate price index for the products.

The Paasche index is a weighted aggregate price index where the weight for each item is its

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

A price relative was computed for houses. The base period is 2005. The price relative in 2010 was 130. The interpretation of the price relative is that

An automobile dealership sells 3 different types of automobiles. Unit prices and the number of units sold in 2005, as well as prices for 2010, are shown below. Compute a weighted aggregate price index (Laspeyres index) for 2010 with 2005 as the base period. Explain your results.

Exhibit 17-3 You are given the following information about items A, B, C, and D. -Refer to Exhibit 17-3. The Paasche index in 2010 (rounded) 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

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.

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