Consider a fictional price index, the College Student Price Index (CSPI), based on a typical college student's annual purchases. Suppose the followingtable shows information on the market basket for the CSPI and the prices of each of the goods in 2017, 2018, and 2019.The cost of each item in the basket and the total cost of the basket are shown for 2017.Perform these same calculations for 2018 and 2019, and enter the results in the following table.201720182019PriceCostPriceCostPriceCostQuantity in Basket(Dollars)(Dollars)(Dollars)(Dollars)(Dollars)(Dollars)Notebooks15308.Calculators1.7070100130Large coffees250250022Energy drinks5010046.Textbooks101201,200150180Total cost1,900Price index100Suppose the base year for this price index is 2017.F12FnLockF4F5F10F11InserF3F6F7F8F9 Textbooks101201,200150180Total cost1,900Price index100Suppose the base year for this price index is 2017.In the last row of the table, calculate and enter the value of the CSPI for the remaining years.Between 2017 and 2018, the CSPI increased byBetween 2018 and 2019, the CSPI increased byWhich of the following, if true, would illustrate why price indexes such as the CSPI might overstate inflation in the cost of going to college? Check allthat apply.O Professors required each student to buy 15 notebooks, regardless of the price.O As the price of textbooks increased, more and more students turned to the used-book market or chose not to buy textbooks at all.instead using the copies on reserve in the library.O The quality and design of calculators improved dramatically from 2017 to 2019. For example, calculators made in 2019 accept memorycards, whereas those made in 2017 do not, but this quality change is hard to measure.O A new, safe method of memory enhancement became available for purchase.

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 2017, 2018, and 2019. The cost of each item in the basket and the total cost of the basket are shown for 2017, Perform these same calculations for 2018 and 2019, and enter the results in the following table. 2017 2018 2019 Price Cost Price Cost Price Cost Quantity in Basket (Dollars) (Dollars) (Dollars) (Dollars) (Dollars) (Dollars) Notebooks 15 30 Calculators 1 70 70 100 130 Large coffees 250 500 2 2 Energy drinks 50 100 6. Textbooks 10 120 1,200 150 180 Total cost 1,900 Price index 100 Suppose the base year for this price index is 2017.

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 2017, 2018, and 2019. The cost of each item in the basket and the total cost of the basket are shown for 2017, Perform these same calculations for 2018 and 2019, and enter the results in the following table. 2017 2018 2019 Price Cost Price Cost Price Cost Quantity in Basket (Dollars) (Dollars) (Dollars) (Dollars) (Dollars) (Dollars) Notebooks 15 30 Calculators 1 70 70 100 130 Large coffees 250 500 2 2 Energy drinks 50 100 6. Textbooks 10 120 1,200 150 180 Total cost 1,900 Price index 100 Suppose the base year for this price index is 2017.

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter13: Inflation

Section: Chapter Questions

Problem 19SQ

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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 2017, 2018, and 2019. The cost of each item in the basket and the total cost of the basket are shown for 2017. Perform these same calculations for 2018 and 2019, and enter the results in the following table.
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 2017, 2018, and 2019. The cost of each item in the basket and the total cost of the basket are shown for 2017. Perform these same calculations for 2018 and 2019, and enter the results in the following table. **THE TABLE IS ATTACHED** Suppose the base year for this price index is 2017. In the last row of the table, calculate and enter the value of the CSPI for the remaining years. Between 2017 and 2018, the CSPI increased by_________%. Between 2018 and 2019, the CSPI increased by_________%. Which of the following, if true, would illustrate why price indexes such as the CSPI might overstate inflation in the cost of going to college? Check all that apply. As the price of textbooks increased, more and more students…
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 2010, 2011, and 2012. The cost of each item in the basket and the total cost of the basket are shown for 2010. Perform these same calculations for 2011 and 2012, and enter the results in the following table. Quantity in Basket 2010 2011 2012 Price Cost Price Cost Price Cost (Dollars) (Dollars) (Dollars) (Dollars) (Dollars) (Dollars) Notebooks 15 2 30 5 8 Calculators 1 70 70 100 130 Large coffees 250 2 500 2 2 Energy drinks 50 2 100 4 6 Textbooks 10 120 1,200 150 180 Total cost 5 5 1,900 5 5 Price index 5 5 100 5 5 Suppose the base year for this price index is 2010. In the last row of the table, calculate and enter…
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 2017, 2018, and 2019. The cost of each item in the basket and the total cost of the basket are shown for 2017. Perform these same calculations for 2018 and 2019, and enter the results in the following table. Quantity in Basket 2017 2018 2019 Price cost price cost Price Cost Notebooks 10 2 20 1 3 Calculators 1 50 50 54 75 Large coffees 200 1 200 1 1 Energy drinks 100 2 200 3 4 Textbooks 10 100 1,000 120 150 Total cost 1,470 Price index 100 Suppose the base year for this price index is 2017. In the last row of the table, calculate and enter the…
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 2017, 2018, and 2019. The cost of each item in the basket and the total cost of the basket are shown for 2017. Perform these same calculations for 2018 and 2019, and enter the results in the following table. Quantity in Basket 2017 2018 2019 Price Cost Price Cost Price Cost (Dollars) (Dollars) (Dollars) (Dollars) (Dollars) (Dollars) Notebooks 8 2 16 2 4 Calculators 1 64 64 104 134 Large coffees 150 2 300 2 2 Energy drinks 40 3 120 4 5 Textbooks 10 80 800 85 105 Total cost 1,300 Price index 100 Suppose the base year for this price index is 2017. In the last row of the table, calculate and enter the…
The table provided shows the amount consumers of a country spend on five items and the percentage change in the price of the products in the same year. What was the overall rise in the weighted cost of living index? (Pick either a, b, c, or d) a)15% b)16% c)17% d)0%
Use the following information to calculate: ______________ __2000___________________2020_________ Product_____ _P_______ Q___________P_________Q_____ Textbooks $40 100 $100 120 Hamburgers 2 200 5 250 Shirts 10 50 30 100 Computers 250 40 200 100 The changes in the cost of living between the given dates, relying on both Laspeyres and Paasche price indices. The change in the cost of living based on the Fisher price index.
The following graph shows a rough approximation of historical and projected median home price is for a country for the period 2000-2024. FILL IN BLANKS.
Economists forecast future economic conditions by studying variables that tend to fluctuate in advance of the overall economy. The most significant of these variables are known as leading indicators, and they compose the index of leading economic indicators. Which of the following variables are measured as part of this index? Check all that apply. Supplier deliveries The ratio of elderly to nonelderly workers New orders for consumer goods Stock prices The money supply True or False: Businesses and government care only about long-run economic forecasts, because they cannot adapt policy or output to accommodate short-run fluctuations. False True Suppose the most recent data show that the average initial weekly claims for unemployment insurance have recently decreased. This change suggests ____ period in the coming months.
Before Phelps’s work, the prevailing view was that economic policy makers faced a tradeoff between unemployment and inflation: Policies that reduced unemployment would increase inflation, and policies that reduced inflation would increase unemployment. This relationship between inflation and unemployment seemed to be supported by the data. For example, the following table shows the unemployment rate and inflation rate for the United States from 1961 to 1969. The inflation rate is measured by the percentage change in the GDP deflator. On the following graph, plot the black points (cross symbol) to show the combinations of unemployment and inflation that existed from 1961 through 1969. Plot the points in order, starting with 1961 and ending with 1969. (Hint: When you're done, place your cursor over each of the points you plotted to ensure that you've placed them on the exact coordinates you intended to.) Based on data in the table, when the inflation rate increased from 4.6% to 5.8%,…
In 2014, the cost of a market basket of goods was $2,000. In 2016, the cost of the same market basket of goods was $2,100. Use the price index formula to calculate the price index for 2016 if 2014 is the base year. Suppose that in 2015, a typical U.S. student attending a state-supported college bought 10 textbooks at a price of $100 per book and enrolled in 25 credit hours of coursework at a price of $360 per credit hour. In 2016, the typical student continued to purchase 10 textbooks and enroll in 25 credit hours, but the price of a textbook rose to $110 per book and the tuition price increased to $400 per credit hour. The base year for computing a “student price index” using this information is 2015. What is the value of the student price index in 2015? In 2016? Show your work. What is the difference between gross private domestic investment and net private domestic investment? If you were to determine net domestic product (NDP) through the expenditures approach, which of these two…
Your first job after graduation is in the statistical office of the small country Exemplia, where most people are employed in olive groves and love eating olives. Based on the most important transactions in Exemplia summarised in below table, you are tasked with calculating the consumer price index with base year 2020. 2020 2021 Price Quantity Price Quantity Olives (domestic consumption) 2 2,000 2.20 2,100 Olives (export) 2 4,000 2.20 3,600 Potatoes imported 1 1,000 1 800 Government‘s purchase of pencils 0.50 10,000 1 6,000 Olive picking machines (imported) 100 10 110 10 a) Determine a suitable basket. b) Using basket from your answer to question (a), calculate the CPI for 2020 and 2021, and the inflation rate for 2021. c) Briefly discuss the most important differences between the calculation of the CPI and the GDP deflator and their consequences.