Question

Suppose you work at the Bureau of Labor Statistics and you are devising a fixed weight...

Suppose you work at the Bureau of Labor Statistics and you are devising a fixed weight price index for inflation measurement. You are given the following array of purchases and prices to create your index.


Quantity 2014 2015 2016
Good A 10 2.00 2.50 2.50
Good B 4 5.00 5.00 4.00
Good C 5 6.00 7.00 9.00

a) Calculate the cost of the basket of goods in 2014, 2015, 2016.

b) Let’s choose 2015 as the base year. If we set the base year index level to 100, what are the index levels for 2014 and 2016?

c) What is the inflation rate in 2015 and 2016?

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
The consumer price index (CPI) is a​ fixed-weight index. It compares the price of a fixed...
The consumer price index (CPI) is a​ fixed-weight index. It compares the price of a fixed bundle of goods in one year with the price of the same bundle of goods in some base year. Suppose the market basket to compute the consumer price index consists of 200 units of good​ X, 175 units of good ​Y, and 60 units of good Z. Year 2013 is the base year. Prices of these goods for the years​ 2013, 2014, and 2015...
Suppose that King Julien of Lemurland asks you to construct a consumer price index. Based on...
Suppose that King Julien of Lemurland asks you to construct a consumer price index. Based on your research you choose a market basket that contains 3,000 yams and 2000 coconuts. Suppose further that the prices of each good from 2014 – 2016 are as follows: Base year is 2014. Year Price of Yams Price of Coconuts 2014 1.50 2.00 2015 1.75 2.20 2016 1.84 2.25 A. What is the CPI for each year? B. Based on the data, what is...
(number 6) Below is a table found from the Bureau of Labor Statistics. Year CPI (index)...
(number 6) Below is a table found from the Bureau of Labor Statistics. Year CPI (index) Year CPI (index) 2000 172.2 2009 214.5 2001 177.1 2010 218.1 2002 179.9 2011 224.9 2003 184.0 2012 229.6 2004 188.9 2013 233.0 2005 195.3 2014 236.7 2006 201.6 2015 237.0 2007 207.3 2016 240.0 2008 215.3 What is the percent difference between 2015 and 2006? In 2006, my family income was $44,000. In 2016, my family income was $52,000. Using the percent change...
Answer the following questions about the CPPI (Couch Potato Price Index) 2014 2015 Good Q P...
Answer the following questions about the CPPI (Couch Potato Price Index) 2014 2015 Good Q P Q P Beer 4 $5.00 3 $6.00 Chips 8 $2.00 8 $2.50 Cable TV 1 $36.00 2 $32.00 Soda Pop 2 $2.00 1 $2.25 Pizza 5 $11.00 3 $16.00 a) Calculate the inflation rate based on this index, using 2014 as the base year Give answer as a % and round to 2 decimal places. (1 point) b) Explain why, based on the figures...
The country of Caspir produces only cereal and milk. Quantities and prices of these goods for...
The country of Caspir produces only cereal and milk. Quantities and prices of these goods for the last several years are shown in the following table. The base year is 2015. ​ Cereal Milk Price (Dollars per box) Quantity (Boxes of cereal) Price (Dollars per gallon) Quantity (Gallons) 2015 4.00 100 1.50 180 2016 4.00 120 2.00 200 2017 5.00 150 2.50 200 2018 6.00 180 3.50 240 This country's inflation rate from 2016 to 2017 was Select one: a....
You are evaluating the performance of two investors. Fernando DeSoto runs the Conquistador investment fund, and...
You are evaluating the performance of two investors. Fernando DeSoto runs the Conquistador investment fund, and Sean Valdez runs the Alpaca fund. Their annual returns are shown in the following table. Year Conquistador Alpaca 2012 6.00% 3.00% 2013 6.00% 12.00% 2014 7.00% 19.00% 2015 6.00% -7.00% 2016 5.00% 4.00% Alpaca’s latest report to investors states that Alpaca’s average return was 6.20% over this period. Conquistador’s average return over this period was 6.00%. Did Alpaca shareholders outperform Conquistador shareholders? Hint: Compute...
Essay Question: Consider the following table. Suppose Bureau of Labor Statistics (BLS) conducted the survey in...
Essay Question: Consider the following table. Suppose Bureau of Labor Statistics (BLS) conducted the survey in year 2010 and based on the survey the CPI basket is comprised of 20 pound of chicken and 10 pound of beef. But as you see in the table, the price of beef increased too much in 2012 compare to the price of chicken. So rational consumers substituted between chicken and beef in 2012 and consumed 5 pound of beef and 25 pound of...
Consider a fictional price index, the College Student Price Index (CSPI), based on a typical college...
Consider a fictional price index, the College Student Price Index (CSPI), based on a typical college student’s annual purchases. Suppose the following table shows information on the market basket for the CSPI and the prices of each of the goods in 2014, 2015, and 2016. The cost of each item in the basket and the total cost of the basket are shown for 2014. Perform these same calculations for 2015 and 2016, and enter the results in the following table....
For the all questions on the assignment, you'll work with the same data. Consider an economy...
For the all questions on the assignment, you'll work with the same data. Consider an economy in which production and prices for three years (2014, 2015, and 2016) are summarized in the following table: Year Food Produced Price of Food Shelter Produced Price of Shelter Medication Produced Price of Medication 2014 20,000 $2.10 8000 $40 600 $50 2015 21,500 $2.50 8200 $40 650 $100 2016 24,000 $2.70 8400 $40 1000 $120 Economists treat 2014 as the base year in their...
The Consumer Price Index             The Consumer Price Index represents the average price of goods that...
The Consumer Price Index             The Consumer Price Index represents the average price of goods that households consume. Many thousands of goods are included in such an index. Here consumers are represented as buying only food (pizza) and gas as their basket of goods. Here is a representation of the kind of data Bureau of Economic Analysis collects to construct a consumer price index. In the base year, 2008, both the prices of goods purchased, and the quantity of goods...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT