The following table shows the | 1
prices and quantities |
consumed by a family of four |
for selected food commodities
for 1990 and 2006. Use 990
as the base period.
a. Determine the simple index for steak for 2006.
| Price | Quantity | Price | Quantity
XXXXXXXXXX $ XXXXXXXXXX
1 a XXXXXXXXXX
. Determine the simple aggregate price index for 2006.
¢. Determine the Laspeyres price index for 2006.
d. Determine the Paasche price index for 2006.
A firm sold $50.000 of a particular product in 1995 and $120,000 in 2003. Using 1995 as
the base, what is the index for 2001?
a. $70,000 b. 240 percent
c. 140 percent. d. 41.7 percent
An index has 1980 as its base. The index reported in 1993 was 127.2 and in 2003 it was
186.7. The percent increase from 1993 to 2005 is
a. 46.8 percent. b. 27.2 percent.
c. 59.5 percent. d. none of the above.
Which of the following price indexes uses cu
ent period quantities in its base?
a. a value index b. a simple index
c. Laspeyres Price Index d. Paasche Price Index
Part II: Record your answer in the space provided. Show essential work.
11. The ecarnings per share for General Year | Earnings per share Index
Electric from the 2002 Annual Reportare [190g $0.95
given at the right. Develop an index XXXXXXXXXX
showing the change in earnings for the -
given years. Use 1998 as the base period. | 2000 oo 1.29
2000 | 1.41
[2003 | 1.52
[2005 | 1.55
12. Professor Jim Martin had an annual income in the base period of $30,000. In
2005 his annual income was $75,100. During the same period the CPI rose
from 100 to XXXXXXXXXXWhat was his real income in 2005? |
e. Determine a value index for 2006.
The table reports the net profit for Heban Tool and Die, Inc. for | Yea
the years 1996 and 2006. Also reported is the tool and die index [1996
for the same years (1985 = XXXXXXXXXX
a. What was the percent increase in the index from 1996 to 2006?
. Convert the index to a 1996 base. What is the new index for 2006?
Net profit | Index
$45,380 | 136.3
65,035 | 150.2
c. Determine the net profit for 2006 in terms of the 1996 base.
Comment on the change.