Deck 15: Index Numbers

Question 1

i. An index number is a percent that measures the change in price, quantity, value, or some other item of interest from one time to another. ii. An index of 239.2 and an index of 86.4 are actually percents.
iii. All indexes have the same base, namely 1982-84, written 1982 - 84 = 100.

A) (i), (ii), and (iii) are all correct statements.
B) (i) and (ii) are correct statements but not (iii).
C) (i) and (iii) are correct statements but not (ii).
D) (ii) and (iii) are correct statements but not (i).
E) (i), (ii), and (iii) are all false statements.

Answer 1

(i) and (ii) are correct statements but not (iii).

Question 2

i. The base number for most indexes is 1. ii. Most business and economic indexes are carried either to the nearest whole percent, such as 312 or 96, or to the nearest 10^th of a percent, such as 97.5 and 178.6.
iii. Converting data to indexes makes it easier to compare the trend in a series composed of exceptionally large numbers.

A) (i), (ii), and (iii) are all correct statements.
B) (i) and (ii) are correct statements but not (iii).
C) (i) and (iii) are correct statements but not (ii).
D) (ii) and (iii) are correct statements but not (i).
E) (i), (ii), and (iii) are all false statements.

Answer 2

(ii) and (iii) are correct statements but not (i).

Question 3

Listed below are the top-steel producing nations, in millions of tons, for the year 2004. Express the amount produced by China, the European Union, Japan, and Russia as an index, using the United States as a base. What percent more steel does the European Union produce than the United States?

A) 184.6
B) 84.6
C) 15.4
D) 52.6
E) 47.4

Answer 3

84.6

Question 4

i. The base period for one index might be 1982-84, while the base period for another index might be 1977. ii. The base number for most indexes is 1.
iii. Most business and economic indexes are carried either to the nearest whole percent, such as 312 or 96, or to the nearest 10^th of a percent, such as 97.5 and 178.6.

A) (i), (ii), and (iii) are all correct statements.
B) (i) and (ii) are correct statements but not (iii).
C) (i) and (iii) are correct statements but not (ii).
D) (ii) and (iii) are correct statements but not (i).
E) (i), (ii), and (iii) are all false statements.

Question 5

Listed below are the top-steel producing nations, in millions of tons, for the year 2004. Express the amount produced by China, the European Union, Japan, and Russia as an index, using the United States as a base. What percent more steel does China produce than the United States?

A) 197
B) 252.6
C) 152.6
D) 52.6
E) 47.4

Question 6

The Statistics Canada reported that the farm population dropped from 30.5 million in 1940 to 16.5 million in 1999. What is the index for 1999 based on 1940?

A) 45.9
B) 103.0
C) 54.1
D) 78.7
E) 184.8

Question 7

The average weekly earnings (including overtime) in Canada since 2003 are given below. Using 2003 as the base year, determine the index for 2005.

A) 101.3
B) 1.3
C) 201.3
D) 103.5
E) 106.8

Question 8

i. An index number is a percent that measures the change in price, quantity, value, or some other item of interest from one time to another. ii. The base number for most indexes is 1.
iii. Converting data to indexes makes it easier to compare the trend in a series composed of exceptionally large numbers.

A) (i), (ii), and (iii) are all correct statements.
B) (i) and (ii) are correct statements but not (iii).
C) (i) and (iii) are correct statements but not (ii).
D) (ii) and (iii) are correct statements but not (i).
E) (i), (ii), and (iii) are all false statements.

Question 9

i. Etienne Laspeyres developed a method in the latter part of the 19^th century to determine a weighted index using base-period weights. ii. If we are constructing a weighted index of the price of food for 2000 using the Laspeyres' method and 1982-84 = 100, we use the amounts consumed in the base period, q₀, as weights.
iii. The Laspeyres' method allows for a meaningful comparison of prices over time; however, if does not reflect changes in buying patterns over time.

A) (i), (ii), and (iii) are all correct statements.
B) (i) and (ii) are correct statements but not (iii).
C) (i) and (iii) are correct statements but not (ii).
D) (ii) and (iii) are correct statements but not (i).
E) (i), (ii), and (iii) are all false statements.

Question 10

The wholesale price of a straight back desk chair in 2012 was $20; in 2013, $23; and in 2014, $18. What were the indexes for 2012 and 2014 using 2013 = 100?

A) 115.0 and 90.0
B) 1.15 and 0.9
C) 1150.0 and 900.0
D) 87.0 and 111.1
E) 87.0 and 78.3

Question 11

i. All indexes have the same base, namely 1982-84, written 1982 - 84 = 100. ii. The base period for one index might be 1982-84, while the base period for another index might be 1977.
iii. The base number for most indexes is 1.

A) (i), (ii), and (iii) are all correct statements.
B) (i) and (ii) are correct statements but not (iii).
C) (i) and (iii) are statements but (ii) is correct.
D) (ii) and (iii) are correct statements but not (i).
E) (i), (ii), and (iii) are all false statements.

Question 12

Sean McCarthy earns $20,000 a year; John Nowak, $35,000. What is John's income as an index using Sean's income as the base?

A) 157.1
B) 75.0
C) 100.0
D) 57.1
E) 175.0

Question 13

The average weekly earnings (including overtime) in Canada since 2003 are given below. Using 2003 as the base year, determine the index for 2006.

A) 101.3
B) 1.3
C) 201.3
D) 103.5
E) 106.8

Question 14

Data for selected vegetables purchased at wholesale prices for 1995 and 2000 are shown below. What is the unweighted aggregate price index?

A) 98.4
B) 107.0
C) 117.5
D) 128.8
E) 88.9

Question 15

i. An index of 239.2 and an index of 86.4 are actually percents. ii. All indexes have the same base, namely 1982-84, written 1982 - 84 = 100.
iii. The base period for one index might be 1982-84, while the base period for another index might be 1977.

A) (i), (ii), and (iii) are all correct statements.
B) (i) and (ii) are correct statements but not (iii).
C) (i) and (iii) are correct statements but not (ii).
D) (ii) and (iii) are correct statements but not (i).
E) (i), (ii), and (iii) are all false statements.

Question 16

Listed below are the top-steel producing nations, in millions of tons, for the year 2004. Express the amount produced by China, the European Union, Japan, and Russia as an index, using the United States as a base. What percent more steel does Japan produce than the United States?

A) 184.6
B) 84.6
C) 15.4
D) 52.6
E) 32.1

Question 17

An index number is a percent that can measure the change from one period of time to another in:

A) Value.
B) Price.
C) Quantity.
D) Volume.
E) Value, price, quantity or volume.

Question 18

i. An index of 239.2 and an index of 86.4 are actually percents. ii. The base period for one index might be 1982-84, while the base period for another index might be 1977.
iii. Most business and economic indexes are carried either to the nearest whole percent, such as 312 or 96, or to the nearest 10^th of a percent, such as 97.5 and 178.6.

A) (i), (ii), and (iii) are all correct statements.
B) (i) and (ii) are correct statements but not (iii).
C) (i) and (iii) are correct statements but not (ii).
D) (ii) and (iii) are correct statements but not (i).
E) (i), (ii), and (iii) are all false statements.

Question 19

If the average hourly earnings in mining in 1988 were $7.67 and for the most recent month it was $14.90, what is the index of hourly earnings for the most recent month based on 1988?

A) 100.0
B) 186.9
C) 51.5
D) 194.3
E) 151.5

Question 20

The average weekly earnings (including overtime) in Canada since 2003 are given below. Using 2003 as the base year, determine the index for 2004.

A) 101.3
B) 1.3
C) 201.3
D) 103.5
E) 106.8

Question 21

An index which compares current prices times current quantities to base period prices times base period quantities called?

A) Laspayres' Price Index
B) Paasche Price Index
C) Value Index
D) Fisher's Ideal Index
E) Special Purpose Index

Question 22

An index of clothing prices for 2014 based on 2000 is to be constructed. The clothing items considered are shoes and dresses. The information for prices and quantities for both years is given below. Use 2000 as the base period and 100 as the base value. Determine the simple average of the price indexes.

A) 111.8
B) 112.9
C) 113.3
D) 112.5
E) 113.0

Question 23

An index of clothing prices for 2014 based on 2000 is to be constructed. The clothing items considered are shoes and dresses. The information for prices and quantities for both years is given below. Use 2000 as the base period and 100 as the base value. Determine the Paasche price index for 2014.

A) 111.8
B) 112.9
C) 113.3
D) 112.5
E) 113.0

Question 24

i. No systematic approach to collecting and reporting data in index form was evident in North America until about 1900. ii. The CPI can be used in determining "real" income.
iii. Purchasing power of the dollar is determined by finding the inverse of the CPI.

A) (i), (ii), and (iii) are all correct statements.
B) (i) and (ii) are correct statements but not (iii).
C) (i) and (iii) are correct statements but not (ii).
D) (ii) and (iii) are correct statements but not (i).
E) (i), (ii), and (iii) are all false statements.

Question 25

An index of clothing prices for 2014 based on 2000 is to be constructed. The clothing items considered are shoes and dresses. The information for prices and quantities for both years is given below. Use 2000 as the base period and 100 as the base value. Determine the Laspeyres' price index for 2014.

A) 111.8
B) 112.9
C) 113.3
D) 112.5
E) 113.0

Question 26

i. Etienne Laspeyres developed a method in the latter part of the 19^th century to determine a weighted index using base-period weights. ii. If we are constructing a weighted index of the price of food for 2000 using the Laspeyres' method and 1982-84 = 100, we use the price of food in the base period, q₀, as weights.
iii. The Laspeyres' method allows for a meaningful comparison of prices over time; however, if does not reflect changes in buying patterns over time.

A) (i), (ii), and (iii) are all correct statements.
B) (i) and (ii) are correct statements but not (iii).
C) (i) and (iii) are correct statements but not (ii).
D) (ii) and (iii) are correct statements but not (i).
E) (i), (ii), and (iii) are all false statements.

Question 27

Data for selected vegetables purchased at wholesale prices for 1995 and 2000 are shown below. What is the interpretation of the value index?

A) Total value of purchases rose 10.3%
B) Total value of purchases rose 18.5%
C) Total value of purchases fell 1.6%
D) Total value of purchases rose 8%
E) Total value of purchases rose 15.6%

Question 28

The number of items produced and the price per item for the Duffy Manufacturing Company are: What is the value index of production for 2000 using 1990 as the base period?

A) 115.2
B) 72.9
C) 110.6
D) 127.1
E) 114.9

Question 29

An index of clothing prices for 2014 based on 2000 is to be constructed. The clothing items considered are shoes and dresses. The information for prices and quantities for both years is given below. Use 2000 as the base period and 100 as the base value. Determine the Fisher's ideal index for 2014.

A) 111.8
B) 112.9
C) 113.3
D) 112.5
E) 113.0

Question 30

i. Etienne Laspeyres developed a method in the latter part of the 19^th century to determine a weighted index using base-period weights. ii. If we are constructing a weighted index of the price of food for 2000 using the Laspeyres' method and 1982-84 = 100, we use the amounts consumed in the base period, q₀, as weights.
iii. The Laspeyres' method changes in buying patterns over time.

A) (i), (ii), and (iii) are all correct statements.
B) (i) and (ii) are correct statements but not (iii).
C) (i) and (iii) are correct statements but not (ii).
D) (ii) and (iii) are correct statements but not (i).
E) (i), (ii), and (iii) are all false statements.

Question 31

An index of clothing prices for 2014 based on 2000 is to be constructed. The clothing items considered are shoes and dresses. The information for prices and quantities for both years is given below. Use 2000 as the base period and 100 as the base value. Determine the Aggregate price index for 2014.

A) 111.8
B) 112.9
C) 113.3
D) 112.5
E) 113.0

Question 32

Data for selected vegetables purchased at wholesale prices for 1995 and 2000 are shown below. What is Laspeyres' price index?

A) 98.4
B) 107.0
C) 108.0
D) 117.5
E) 115.6

Question 33

Data for selected vegetables purchased at wholesale prices for 1995 and 2000 are shown below. Using the Laspeyres method, what is the price index for these items?

A) 110.3
B) 98.4
C) 108.0
D) 118.5
E) 115.6

Question 34

An index of clothing prices for 2014 based on 2000 is to be constructed. The prices for 2000 and 2014 and the quantity consumed in 2000 are shown below. Assuming that the number sold remained constant, i.e., the same number were sold in 2014 as in 2000, what is the weighted index of price for 2014 using 2000 as the base?

A) 206.7
B) 214.5
C) 48.4
D) 46.6
E) 240.0

Question 35

Prices and the number produced for selected agricultural items are: Using the Laspeyres method, what is the price index for these items for 2014 (2000 = 100)?

A) 42.5
B) 257.5
C) 127.9
D) 85.3
E) 117.1

Question 36

Data for selected vegetables purchased at wholesale prices for 1995 and 2000 are shown below. What is Paasche's price index?

A) 98.4
B) 107.0
C) 108.0
D) 117.5
E) 115.6

Question 37

Data for selected vegetables purchased at wholesale prices for 1995 and 2000 are shown below. What is the interpretation of Laspeyres' price index?

A) Prices rose 98.4%
B) Prices declined 1.6%
C) Prices rose 7.0%
D) Prices rose 8.0%
E) Prices rose 15.6%

Question 38

i. An index is a convenient way of comparing changes for different variables, i.e., average income and food prices. ii. No systematic approach to collecting and reporting data in index form was evident in North America until about 1900.
iii. The CPI can be used in determining "real" income.

A) (i), (ii), and (iii) are all correct statements.
B) (i) and (ii) are correct statements but not (iii).
C) (i) and (iii) are correct statements but not (ii).
D) (ii) and (iii) are correct statements but not (i).
E) (i), (ii), and (iii) are all false statements.

Question 39

Data for selected vegetables purchased at wholesale prices for 1995 and 2000 are shown below. What is Fisher's Ideal Index?

A) 107.5
B) 102.6
C) 112.8
D) 103.2
E) 102.7

Question 40

i. An index is a convenient way of comparing changes for different variables, i.e., average income and food prices. ii. The concept of real income is sometimes called deflated income.
iii. Purchasing power of the dollar is determined by finding the inverse of the CPI.

A) (i), (ii), and (iii) are all correct statements.
B) (i) and (ii) are correct statements but not (iii).
C) (i) and (iii) are correct statements but not (ii).
D) (ii) and (iii) are correct statements but not (i).
E) (i), (ii), and (iii) are all false statements.

Question 41

i. To construct a special-purpose index designed to measure general business activity, the weights are based on the judgments of the statistician and assigned to each series. ii. The Consumer Price Index measures the change in prices of a fixed market basket of goods and services from one period to another.
iii. The CPI is not just one index, but includes a large number of groups, subgroups and selected items, such as a food index, a transportation index and a shelter index.

A) (i), (ii), and (iii) are all correct statements.
B) (i) and (ii) are correct statements but not (iii).
C) (i) and (iii) are correct statements but not (ii).
D) (ii) and (iii) are correct statements but not (i).
E) (i), (ii), and (iii) are all false statements.

Question 42

i. To deflate sales, the actual sales are multiplied by the wholesale price index and the result multiplied by 100. ii. The CPI serves only one major function: as an economic indicator of the rate of inflation.
iii. To construct a special-purpose index designed to measure general business activity, the weights are based on the judgments of the statistician and assigned to each series.

A) (i), (ii), and (iii) are all correct statements.
B) (i) and (ii) are correct statements but not (iii).
C) (i) and (iii) are correct statements but not (ii).
D) (iii) is a correct statement, but not (i) or (ii).
E) (i), (ii), and (iii) are all false statements

Question 43

i. The largest component of the Canadian CPI is Food. ii. Besides measuring change in the prices of goods and services, the consumer price indexes have a number of other applications. The CPI is used to determine real disposable personal income, deflate sales or other series, find the purchasing power of the dollar and establish cost of living increases.
iii. The concept of real income is sometimes called deflated income or income expressed in constant dollars and the CPI is called the deflator.

A) (i), (ii), and (iii) are all correct statements.
B) (i) and (ii) are correct statements but not (iii).
C) (i) and (iii) are correct statements but not (ii).
D) (ii) and (iii) are correct statements but not (i).
E) (i), (ii), and (iii) are all false statements.

Question 44

Real income is computed by:

A) dividing money income by the CPI and multiplying by 100.
B) dividing the CPI by money income and multiplying by 100.
C) multiplying money income by the CPI.
D) subtracting the CPI from money income.
E) dividing a dollar by the CPI and multiplying by 100.

Question 45

i. When two or more series of index numbers to be compared do not have the same base period, we select a common base period for all series. Then we use the respective base numbers as the denominators and convert each base to the new base. ii. Canada pension plan payments and old age security pensions are periodically adjusted based on the Consumer Price Index.
iii. The largest component of the Canadian CPI is Food.

A) (i), (ii), and (iii) are all correct statements.
B) (i) and (ii) are correct statements but not (iii).
C) (i) and (iii) are correct statements but not (ii).
D) (ii) and (iii) are correct statements but not (i).
E) (i), (ii), and (iii) are all false statements.

Question 46

i. Millions of employees in automobile, steel and other industries have their wages adjusted upward when the CPI increases. The specifics are in the management-union contracts. These clauses in the contracts are referred to as "cola clauses." ii. When two or more series of index numbers to be compared do not have the same base period, we select a common base period for all series. Then we use the respective base numbers as the denominators and convert each base to the new base.
iii. The largest component of the Canadian CPI is Food.

A) (i), (ii), and (iii) are all correct statements
B) (i) and (ii) are correct statements but not (iii).
C) (i) and (iii) are correct statements but not (ii).
D) (ii) and (iii) are correct statements but not (i).
E) (i), (ii), and (iii) are all false statements

Question 47

i. The CPI serves only one major function: as an economic indicator of the rate of inflation. ii. To construct a special-purpose index designed to measure general business activity, the weights are based on the judgments of the statistician and assigned to each series.
iii. The Consumer Price Index measures the change in prices of a fixed market basket of goods and services from one period to another.

A) (i), (ii), and (iii) are all correct statements.
B) (i) and (ii) are correct statements but not (iii).
C) (i) and (iii) are correct statements but not (ii).
D) (ii) and (iii) are correct statements but not (i).
E) (i), (ii), and (iii) are all false statements.

Question 48

What component(s) does the CPI include?

A) Recreation and Education
B) Food
C) Shelter
D) Clothing
E) Recreation and Education, Food, Shelter, and Clothing.

Question 49

i. Millions of employees in automobile, steel and other industries have their wages adjusted upward when the CPI increases. The specifics are in the management-union contracts. These clauses in the contracts are referred to as "cola clauses." ii. If two or more series of index numbers have the same year as the base period, then they can be compared directly.
iii. When two or more series of index numbers to be compared do not have the same base period, we select a common base period for all series. Then we use the respective base numbers as the denominators and convert each base to the new base.

A) (i), (ii), and (iii) are all correct statements.
B) (i) and (ii) are correct statements but not (iii).
C) (i) and (iii) are correct statements but not (ii).
D) (ii) and (iii) are correct statements but not (i).
E) (i), (ii), and (iii) are all false statements.

Question 50

i. If two or more series of index numbers have the same year as the base period, then they can be compared directly. ii. When two or more series of index numbers to be compared do not have the same base period, we select a common base period for all series. Then we use the respective base numbers as the denominators and convert each base to the new base.
iii. Canada pension plan payments and old age security pensions are periodically adjusted based on the Consumer Price Index.

A) (i), (ii), and (iii) are all correct statements.
B) (i) and (ii) are correct statements but not (iii).
C) (i) and (iii) are correct statements but not (ii).
D) (ii) and (iii) are correct statements but not (i).
E) (i), (ii), and (iii) are all false statements.

Question 51

i. Besides measuring change in the prices of goods and services, the consumer price indexes have a number of other applications. The CPI is used to determine real disposable personal income, deflate sales or other series, find the purchasing power of the dollar and establish cost of living increases. ii. The concept of real income is sometimes called deflated income or income expressed in constant dollars and the CPI is called the deflator.
iii. To deflate sales, the actual sales are multiplied by the wholesale price index and the result multiplied by 100.

A) (i), (ii), and (iii) are all correct statements.
B) (i) and (ii) are correct statements but not (iii).
C) (i) and (iii) are correct statements but not (ii).
D) (ii) and (iii) are correct statements but not (i).
E) (i), (ii), and (iii) are all false statements.

Question 52

i. Social security, old-age pensions, many apartment leases and many labor contracts are tied to the change in the CPI. ii. Millions of employees in automobile, steel and other industries have their wages adjusted upward when the CPI increases. The specifics are in the management-union contracts. These clauses in the contracts are referred to as "cola clauses."
iii. To deflate sales, the actual sales are multiplied by the wholesale price index and the result multiplied by 100.

A) (i), (ii), and (iii) are all correct statements.
B) (i) and (ii) are correct statements but not (iii).
C) (i) and (iii) are correct statements but not (ii).
D) (ii) and (iii) are correct statements but not (i).
E) (i), (ii), and (iii) are all false statements.

Question 53

i. The concept of real income is sometimes called deflated income or income expressed in constant dollars and the CPI is called the deflator. ii. To deflate sales, the actual sales are multiplied by the wholesale price index and the result multiplied by 100.
iii. The CPI serves only one major function: as an economic indicator of the rate of inflation.

A) (i) is a correct statement, but (ii) and (iii) are statements.
B) (i) and (ii) are correct statements but not (iii).
C) (i) and (iii) are correct statements but not (ii).
D) (ii) and (iii) are correct statements but not (i).
E) (i), (ii), and (iii) are all false statements.

Question 54

i. Canada pension plan payments and old age security pensions are periodically adjusted based on the Consumer Price Index. ii. The largest component of the Canadian CPI is Food.
iii. Besides measuring change in the prices of goods and services, the consumer price indexes have a number of other applications. The CPI is used to determine real disposable personal income, deflate sales or other series, find the purchasing power of the dollar and establish cost of living increases.

A) (i), (ii), and (iii) are all correct statements.
B) (i) and (ii) are correct statements but not (iii).
C) (i) and (iii) are correct statements but not (ii).
D) (ii) and (iii) are correct statements but not (i).
E) (i), (ii), and (iii) are all false statements.

Question 55

i. The Consumer Price Index measures the change in prices of a fixed market basket of goods and services from one period to another. ii. The CPI is not just one index, but includes a large number of groups, subgroups and selected items, such as a food index, a transportation index and a shelter index.
iii. The Consumer Price Index is based on more than 600 separate goods and services used by most urban and rural families.

A) (i), (ii), and (iii) are all correct statements.
B) (i) and (ii) are correct statements but not (iii).
C) (i) and (iii) are correct statements but not (ii).
D) (ii) and (iii) are correct statements but not (i).
E) (i), (ii), and (iii) are all false statements.

Question 56

i. The CPI is not just one index, but includes a large number of groups, subgroups and selected items, such as a food index, a transportation index and a shelter index. ii. The Consumer Price Index is based on more than 600 separate goods and services used by most urban and rural families.
iii. One function of CPI is to allow consumers to determine the degree to which their purchasing power is being eroded by price increases and as such, it is a metre stick for revising wages, pensions and other income payments to keep pace with changes in prices.

A) (i), (ii), and (iii) are all correct statements.
B) (i) and (ii) are correct statements but not (iii).
C) (i) and (iii) are correct statements but not (ii).
D) (ii) and (iii) are correct statements but not (i).
E) (i), (ii), and (iii) are all false statements.

Question 57

i. Social security, old-age pensions, many apartment leases and many labor contracts are tied to the change in the CPI. ii. Millions of employees in automobile, steel and other industries have their wages adjusted upward when the CPI increases. The specifics are in the management-union contracts. These clauses in the contracts are referred to as "cola clauses."
iii. If two or more series of index numbers have the same year as the base period, then they can be compared directly.

A) (i), (ii), and (iii) are all correct statements.
B) (i) and (ii) are correct statements but not (iii).
C) (i) and (iii) are correct statements but not (ii).
D) (ii) and (iii) are correct statements but not (i).
E) (i), (ii), and (iii) are all false statements.

Question 58

The CPI for "personal computers and peripheral equipment" in July of 2001 was 29.3 (1982-1984 = 100). Interpret this index.

A) There was no significant increase in the price of "personal computers and peripheral equipment"
B) The price of "personal computers and peripheral equipment" increased 29.3%.
C) The price of "personal computers and peripheral equipment" decreased 70.7%.
D) If the average price of a computer in 1982-1984 was $879.00, the CPI for "personal computers and peripheral equipment" would predict that the price of a computer in July 2001 would be $3,000.00.
E) The price of "personal computers and peripheral equipment" decreased 29.3%.

Question 59

i. An index is a convenient way of comparing changes for different variables, i.e., average income and food prices. ii. The concept of real income is sometimes called deflated income.
iii. Purchasing power of the dollar is the same as the CPI.

A) (i), (ii), and (iii) are all correct statements.
B) (i) and (ii) are correct statements but not (iii).
C) (i) and (iii) are correct statements but not (ii).
D) (ii) and (iii) are correct statements but not (i).
E) (i), (ii), and (iii) are all false statements.

Question 60

The CPI for "educational books and supplies" in July of 2001 was 295.1 (1982-1984 = 100). Interpret this index.

A) There was no significant increase in the price of "educational books and supplies".
B) The price of "educational books and supplies" increased 295.1%.
C) If the average price of a textbook in 1982-1984 was $25.00, the CPI for "educational books and supplies" would predict that the price of the textbook in July 2001 would be $73.78.
D) If the average price of a textbook in 1982-1984 was $25.00, the CPI for "educational books and supplies" would predict that the price of the textbook in July 2001 would be $48.78.
E) The price of "educational books and supplies" decreased 195.1%.

Question 61

The Consumer Price Index in June 1998 was 248.4 (1982-84 = 100). What does this indicate about prices from 1982-84 to June 1998?

A) Rose 248.4%
B) Rose 548.4%
C) Rose 148.4%
D) Declined 148.4%
E) Declined 248.4%

Question 62

The following table shows the average earnings by gender of Canadian workers. The changes in earnings for men and women are to be compared. Unfortunately, the base period of 1998 is different for the two groups.
Determine the average earnings increase for both men and women over the period 1998 to 2002.

A) Women's earnings increased by 12.1% and men's earnings increased by 12.0%.
B) Women's earnings increased by 7.9% and men's earnings increased by 9.9%.
C) Women's earnings increased by 9.6% and men's earnings increased by 10.4%.
D) Women's earnings increased by 9.6% and men's earnings decreased by 10.4%.
E) Women's earnings increased by 5.9% and men's earnings increased by 4.0%.

Question 63

The take-home pay of Jon Greene and the CPI for 2003 and 2007 are: What was Jon's real income in 2007?

A) $34,046.69
B) $58,295.96
C) $59,880.00
D) $72,475.00
E) $57,988.24

Question 64

As chief statistician for the municipality, you want to compute and publish every year a special-purpose index, which you plan to call Index of Municipal Business Activity. Three series seem to hold promise as the basis for the index; namely, the price of wheat, the number of new automobiles sold and the rate of money turnover for the municipality (published by a local bank). Arbitrarily you decide that money turnover should have a weight of 60 percent; number of new automobiles sold, 30 percent; and the price of wheat, 10 percent. What is the Index of Municipal Business Activity for 2010 (the base year) and for 2014?

A) 100 for 2010, 139 for 2014
B) 139 for 2010, 100 for 2014
C) 100 for 2010, 61 for 2014
D) 100 for 2010, 100 for 2014
E) 100 for 2010, 160 for 2014

Question 65

The following table shows the average earnings by gender of Canadian workers. The changes in earnings for men and women are to be compared. Unfortunately, the base period of 1998 is different for the two groups.
Determine the average earnings increase for both men and women over the period 1998 to 2003.

A) Women's earnings increased by 12.1% and men's earnings increased by 12.0%.
B) Women's earnings increased by 7.9% and men's earnings increased by 9.9%.
C) Women's earnings increased by 9.6% and men's earnings increased by 10.4%.
D) Women's earnings increased by 9.6% and men's earnings decreased by 10.4%.
E) Women's earnings increased by 5.9% and men's earnings increased by 4.0%.

Question 66

The take-home pay of Jon Greene and the CPI for 2003 and 2007 are: What was Jon's real income in 2003?

A) $34,046.69
B) $34,500.00
C) $59,880.00
D) $41,200.00

Question 67

In 2000, an executive earned $100,000. In 2009, the executive earned $125,000. The CPI in 2000 was 172.2, and the CPI in 2009 was 214.537. Using the CPI base, 1982-1984 = 100, what was the real income in 2009?

A) $58,265
B) $58,072
C) $58,000
D) $58,999

Question 68

The take home pay of an employee working in an urban area for 1995 and 2014 are: If the CPI rose from 70 in 1995 to 172.2 in 2014 (2002 = 100), what was the "real" take home pay of the employee in 2014?

A) $5,000
B) $7,143
C) $11,200
D) $7,666
E) $13,200

Question 69

The 2001 CPI was 171.1 (1982-84 = 100). What is the purchasing power of the dollar relative to the base?

A) $0.58
B) $0.74
C) $0.44
D) $0.56

Question 70

In 2000, an executive earned $100,000. In 2009, the executive earned $125,000. The CPI in 2000 was 172.2, and the CPI in 2009 was 214.537. Using the CPI base, 1982-1984 = 100, what was the increase in real income from 2000 to 2009?

A) $193
B) $139
C) $580
D) $173

Question 71

If the Consumer Price Index is 172.2 (2002 = 100), what is the purchasing power of the dollar?

A) $1.00
B) $0.33
C) $0.58
D) $0.50
E) $0.72

Question 72

How is the purchasing power of the dollar computed?

A) ($1/CPI) (100)
B) ($1 - CPI) (100)
C) ($1 $\times$ CPI) (100)
D) (CPI/$1) (100)
E) ($1 + CPI) (100)

Question 73

The take-home pay of Jon Greene and the CPI for 2003 and 2007 are: What was Jon's real income in 2007?

A) $34,046.69
B) $58,295.96
C) $39,650.00
D) $36,950.67
E) $41,200.00

Question 74

The following table shows the average earnings by gender of Canadian workers. The changes in earnings for men and women are to be compared. Unfortunately, the base period of 1998 is different for the two groups.
Determine the average earnings increase for both men and women over the period 1998 to 2005.

A) Women's earnings increased by 12.1% and men's earnings increased by 12.0%.
B) Women's earnings increased by 7.9% and men's earnings increased by 9.9%.
C) Women's earnings increased by 9.6% and men's earnings increased by 10.4%.
D) Women's earnings increased by 12.0% and men's earnings decreased by 12.1%.
E) Women's earnings increased by 12.6% and men's earnings increased by 10.4%.

Question 75

The 2009 CPI was 214.537 (1982-84 = 100). What is the purchasing power of the dollar relative to the base?

A) $0.47
B) $0.74
C) $0.44
D) $0.56

Question 76

In 2000, an executive earned $100,000. In 2009, the executive earned $125,000. The CPI in 2000 was 172.2, and the CPI in 2009 was 214.537. Using the CPI base, 1982-1984 = 100, what was the real income in 2000?

A) $58,265
B) $58,072
C) $58,000
D) $58,999

Question 77

The following table shows the average earnings by gender of Canadian workers. The changes in earnings for men and women are to be compared. Unfortunately, the base period of 1998 is different for the two groups.
Determine the average earnings increase for both men and women over the period 1998 to 2004.

A) Women's earnings increased by 5.9% and men's earnings increased by 4.0%.
B) Women's earnings increased by 7.9% and men's earnings increased by 9.9%.
C) Women's earnings increased by 9.6% and men's earnings increased by 11.4%.
D) Women's earnings increased by 9.6% and men's earnings increased by 10.4%.
E) Women's earnings increased by 12.6% and men's earnings increased by 10.4%.

Question 78

The take-home pay of Jon Greene and the CPI for 2003 and 2007 are: What was Jon's real income in 2007?

A) $50,175.00
B) $38,295.96
C) $39,650.00
D) $40,358.74
E) $42,780.27

Question 79

Below is Jim Walker's income for 2013 and 2015. What was Jim's real income for 2015?

A) $17,000
B) $27,000
C) $15,799
D) $21,487
E) $37,000

Question 80

The take-home pay of Jon Greene and the CPI for 2003 and 2007 are: What was Jon's real income in 2007?

A) $69,650.00
B) $58,295.96
C) $39,650.00
D) $78,050
E) $62,780.27