CHAPTER 17—INDEX NUMBERSMULTIPLE CHOICE 1.The price relative is a price index that is determined by a.(price in period t/base period price)(100)b.(base period price/price in period t)(100)c.(price in period t + base period price)(100)d.(price in period t)(100)ANS: A 2.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 3.Consumer Price Index is 4.A price index for a given item which is computed by dividing a current unit price by a base-period unitprice and multiplying the result by 100 is known as the 5.A composite price index based on the prices of a group of items is known as the a.Group price relativeb.Aggregate price indexc.Laspeyres indexd.Paasche indexANS: B6. A Composite price index where the prices of the items in the composite are weighted by their relative importance is called the
7.The consumer price index is 8.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 9.A weighted aggregate price index where the weight for each item is its base-period quantity is known as the a.Laspeyres indexb.Paasche indexc.Weight indexd.Quantity indexANS: A 10.A weighted aggregate price index where the weight for each item is its current-period quantity is the 11.Aggregate price indexes reflecting the prices of stocks listed on the New York Stock Exchange are 12.An index that is designed to measure changes in quantities over time is the 13. A quantity index which is designed to measure changes in the physical volume of production levels of industrial goods over time is the
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- Fall '15
- Microeconomics, Consumer price index, aggregate price index, Paasche Index