CHAPTER 15 ASSIGNMENT

INDEX NUMBERS
Name ________________________________ Section ________ Score _______
Part I Select the correct answer and write the appropriate letter in the space provided.
______1. The base period is
a. always 1982-84.
b. usually a year such as 199! or a "roup o# years such as 1982-84.
c. always reported as dollars.
d. a number such as 14.$%
______2. & "iven period re#ers to
a. any other period than the base period.
b. the year 19$%.
c. a dollar value such as '2(!.
d. the smaller o# two values.
______). & *aspeyres +rice ,nde- uses as its wei"hts
a. "iven period .uantities.
b. base period .uantities.
c. base period prices.
d. "iven period prices.
______4. ,n an a""re"ate price inde-
a. the prices o# several commodities are added.
b. no consideration is "iven to the units.
c. it does not consider the .uantities involved.
d. all o# the above.
______(. The +aasche +rice inde- uses as its wei"hts the
a. "iven period .uantities.
b. base period .uantities.
c. base period prices.
d. "iven period prices.
______$. The current base period #or the /onsumer +rice ,nde- is
a. 1982-84.
b. 199)-9(.
c. 1982.
d. 1984.
______%. The ,nde- o# ,ndustrial +roduction is 1)(.4! 01982-84 1 12. This means that
production
a. increased ')(.4 in 199$. b. declined )(.4 percent since 1982.
c. increased )(.4 percent since 1982-84. d. decreased )(.4 percent in 199$.
______8. & #irm sold '(! o# a particular product in 199( and '12! in 2(. 3sin" 199( as
the base! what is the inde- #or 214
Chapter 15 Index Number 67
a. '%! b. 24 percent
c. 14 percent. d. 41.% percent
______9. &n inde- has 198 as its base. The inde- reported in 199) was 12%.2 and in 2( it was
18$.%. The percent increase #rom 199) to 2( is
a. 4$.8 percent. b. 2%.2 percent.
c. (9.( percent. d. none o# the above.
______1. 5hich o# the #ollowin" price inde-es uses current period .uantities in its base4
a. a value inde- b. a simple inde-
c. *aspeyres +rice ,nde- d. +aasche +rice ,nde-
Part II: 6ecord your answer in the space provided. Show essential wor7.
11. The earnin"s per share #or 8eneral
9lectric #rom the 22 &nnual 6eport
are "iven at the ri"ht. :evelop an
inde- showin" the chan"e in earnin"s
#or the "iven years. 3se 1998 as the
base period.
12. +ro#essor ;im <artin had an annual income in the base period o# ')!. ,n
2( his annual income was '%(!1. :urin" the same period the /+, rose
#rom 1 to 184.$. 5hat was his real income in 2(4
1). The #ollowin" table shows
the prices and .uantities
Index Number Chapter 15
!ear Earn"n# per hare Index
1998 '.9(
1999 1.9
2 1.29
21 1.41
22 1.(1
2) 1.(2
24 1.$2
2( 1.((
1$$% &%%'
C(mm(d"t) Pr"*e +uant"t) Pr"*e +uant"t)
8round bee# 0per lb2 '1.)9 8 '2.9 11
<il7 01 "allon2 1.$9 1 2.%( 12
/oo7ies 0do=en2 1.29 9( 2.(9 1
Stea7 0per pound2 4.99 ( 9.49 4
68
12.
a.
consumed by a #amily o# #our #or selected #ood commodities #or 199 and 2$. 3se 199 as
the base period.
a. :etermine the simple inde- #or stea7 #or 2$.
b. :etermine the simple a""re"ate price inde- #or 2$.
c. :etermine the *aspeyres price inde- #or 2$.
d. :etermine the +aasche price inde- #or 2$.
e. :etermine a value inde- #or 2$.
Chapter 15 Index Number 69
b.
c.
e.
d.
14. The table reports the net pro#it #or >eban Tool and :ie! ,nc.
#or the years 199$ and 2$. &lso reported is the tool and die
inde- #or the same years 0198( 1 12.
a. 5hat was the percent increase in the inde- #rom 199$ to 2$4
b. /onvert the inde- to a 199$ base. 5hat is the new inde- #or 2$4
c. :etermine the net pro#it #or 2$ in terms o# the 199$ base. /omment on
the chan"e.
Index Number Chapter 15
!ear Net pr(,"t Index
199$ '4(!)8 1)$.)
2$ $(!)( 1(.2
70
a.
b.
c.