Which of the following are examples of price indexes?

1.   ?    Consumer Price Index
2.   ?    Dow Jones Industrial Average
3.   ?    Producer Price Index
4.   ?    All of the above
5.   ?    None of the above

Item Quantity Unit Price ($)
1994 2004 1994 2004
A 15 20 1.70 2.10
B 20 20 19.00 22.00
C 25 30 3.00 3.10
The price relative for item A for 2004 is

1.   ?    a. 0.81
2.   ?    1.24
3.   ?    81
4.   ?    124
5.   ?    None of the above

Item Quantity Unit Price ($)
1994 2004 1994 2004
A 15 20 1.70 2.10
B 20 20 19.00 22.00
C 25 30 3.00 3.10
The price relative for item C is

1.   ?    97
2.   ?    100
3.   ?    103
4.   ?    124

Item Quantity Unit Price ($)
1994 2004 1994 2004
A 15 20 1.70 2.10
B 20 20 19.00 22.00
C 25 30 3.00 3.10
The unwieghted aggregate price index

1.   ?    103
2.   ?    115
3.   ?    116
4.   ?    124

Item Quantity Unit Price ($)
1994 2004 1994 2004
A 15 20 1.70 2.10
B 20 20 19.00 22.00
C 25 30 3.00 3.10
Use the Laspeyres method to compute a weighted aggregate index.

1.   ?    108.9
2.   ?    114.1
3.   ?    114.3
4.   ?    119.7

Item Quantity Unit Price ($)
1994 2004 1994 2004
A 15 20 1.70 2.10
B 20 20 19.00 22.00
C 25 30 3.00 3.10
Use the Paasche method to compute a weighted aggregate index.

1.   ?    108.9
2.   ?    114.1
3.   ?    114.7
4.   ?    119.7

The price of a brand of organic enchilada was $2.97 in 1996 and was $3.13 in 2001. The price relative for 2001 using a 1996 base

1.   ?    0.95
2.   ?    0.95
3.   ?    5.4
4.   ?    95
5.   ?    105

The price of a brand of organic enchilada was $2.97 in 1996 and was $3.13 in 2001. The interpretation of the price relative for 2001 using a 1996 base is that the price has increased 105%.

1.   ?    True
2.   ?    False

The weighted aggregate index which uses the current period quantity weights is called the Laspeyres Index.

1.   ?    True
2.   ?    False

The base period value for a price index is usually given a value of

1.   ?    1
2.   ?    10
3.   ?    100
4.   ?    1000
5.   ?    None of the above

Below you are given the CPI (1982-1984 base) for 1999 through 2003
Year CPI
1999 166.6
2000 172.2
2001 177.1
2002 179.9
2003 184.0
Given this information, one can claim that, in general, prices have gone up $17.40 over the 5 years.

1.   ?    True
2.   ?    False

Below you are given the CPI (1982-1984 base) for 1999 through 2003 and John's hourly wage from 1999 to 2003.
Year CPI Wage($)
1999 166.6 9.00
2000 172.2 9.15
2001 177.1 9.25
2002 179.9 9.50
2003 184.0 9.75
Deflate John's 1999 wage using the CPI with the 1982-1984 base.

1.   ?    $3.56
2.   ?    $5.40
3.   ?    $6.00
4.   ?    $382

Below you are given the CPI (1982-1984 base) for 1999 through 2003 and John's hourly wage from 1999 to 2003.
Year CPI Wage($)
1999 166.6 9.00
2000 172.2 9.15
2001 177.1 9.25
2002 179.9 9.50
2003 184.0 9.75
Deflate John's 2003 wage using the CPI with the 1982-1984 base.

1.   ?    $3.92
2.   ?    $5.30
3.   ?    $6.00
4.   ?    $6.50

Below you are given the CPI (1982-1984 base) for 1999 through 2003 and John's hourly wage from 1999 to 2003.
Year CPI Wage($)
1999 166.6 9.00
2000 172.2 9.15
2001 177.1 9.25
2002 179.9 9.50
2003 184.0 9.75
Over the five-year period John's deflated wage using the CPI with the 1982-1984 base has

1.   ?    decreased 1.9%
2.   ?    increased 2.6%
3.   ?    increased 9.8%
4.   ?    increased 12.5%

Below you are given the CPI (1982-1984 base) for 1999 through 2003 and John's hourly wage from 1999 to 2003.
Year CPI Wage($)
1999 166.6 9.00
2000 172.2 9.15
2001 177.1 9.25
2002 179.9 9.50
2003 184.0 9.75
Give John's 2003 wage in 1999 dollars.

1.   ?    $3.92
2.   ?    $6.15
3.   ?    $8.83
4.   ?    $11.62