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Student: ___________________________________________________________________________
1. 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.

2. 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.

3. 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.

4. 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 incorrect statements but (ii) is correct.
D. (ii) and (iii) are correct statements but not (i).
E. (i), (ii), and (iii) are all false statements.

5. 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 10th 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.

6. 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 10th 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.

7. 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 10th 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.

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.

9. 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 Italian, G.R. Carli, has been credited with originating Fisher's Ideal Index.
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.

10. Listed below are the top-steel producing nations, in millions of tonnes, 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

11. Listed below are the top-steel producing nations, in millions of tonnes, 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

12. Listed below are the top-steel producing nations, in millions of tonnes, 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

13. 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

14. 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

15. 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

16. 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

17. 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

18. 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

19. 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

20. 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

21. i. Etienne Laspeyres developed a method in the latter part of the 19th 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.

22. i. Etienne Laspeyres developed a method in the latter part of the 19th 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.

23. i. Etienne Laspeyres developed a method in the latter part of the 19th 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.

24. 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

25. 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%

26. 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%

27. 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

28. 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

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 simple average of the price indexes.

A. 111.8
B. 112.9

C. 113.3
D. 112.5
E. 113.0

30. 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

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 Laspeyres' price index for 2014.

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

32. 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

33. 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

34. 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

35. 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

36. 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

37. 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

38. 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

39. 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.

40. 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.

41. 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.

42. 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.

43. 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 managementunion 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.

44. 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.

45. 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.

46. 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.

47. 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.

48. 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.

49. 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.

50. 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 incorrect 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.

51. 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

52. 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.

53. 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.

54. 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.

55. 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 metrestick
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.

56. 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

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 managementunion 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.

58. The CPI for "educational books and supplies" in July of 2001 was 295.1 (19821984 = 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%.

59. 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.

60. 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%.

61. 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.

62. 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

63. 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%

64. 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

65. 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

66. How is the purchasing power of the dollar computed?

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

67. 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

68. 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

69. 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

70. 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

71. 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

72. 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

73. 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%.

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%.

75. 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%.

76. 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%.

77. 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

78. 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

79. 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

80. 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

81. 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

82. The Consumer Price Index (1982-84 = 100) reports a CPI in August 2010 for
Energy as 212.372. What is the percentage change in the price of energy compared
to the base?
A. Increased 112.372 percent
B. Decreased 112.372 percent
C. Increased 212.372 percent
D. Decreased 212.372 percent

83. The Consumer Price Index (1982-84 = 100) reports a CPI in August 2010 for
Rent of Shelter as 239.115. What is the percentage change in the price of Rent of
Shelter compared to the base?
A. Increased 139.115 percent
B. Decreased 139.115 percent
C. Increased 239.115 percent
D. Decreased 239.115 percent

84. If the Laspeyres index is 140.78 and the Paasche index is 98.01, what is Fisher's
ideal index?
A. 117.144
B. 117.46
C. 137.22
D. 173.14

85. If the Laspeyres index is 111.95 and the Paasche index is 122.58, what is
Fisher's ideal index?
A. 117.144
B. 13722
C. 137.22
D. 173.14

86. If the Laspeyres index is 135.41 and the Paasche index is 145.34, what is
Fisher's ideal index?
A. 117.144
B. 13722
C. 137.22
D. 140.29

87. The following data was collected on mutual fund prices.

Compute value index to compare mutual fund prices in 2015 to 2010.

A. 245.86
B. 154.51
C. 153.04
D. 147.22

88. The following data was collected on mutual fund prices.

Compute the Paasche price index to compare mutual fund prices in 2015 to 2010.
A. 245.86
B. 154.51
C. 153.04
D. 147.22

89. The following data was collected on mutual fund prices.

Compute the Laspeyres price index to compare mutual fund prices in 2015 to 2010.
A. 245.86
B. 154.51
C. 153.04
D. 147.22

90. The following data was collected on mutual fund prices.

Compute a simple aggregate index comparing mutual fund prices in 2015 to mutual
fund prices in 2010.
A. 245.86
B. 154.51
C. 153.04
D. 147.22

91. The following data was collected comparing car prices and quantity sold
(thousands).

Compute the Paasche price index to compare car prices in 2010 to 2000.
A. 115.93
B. 122.19
C. 126.67
D. 147.22

92. The following data was collected comparing car prices and quantity sold
(thousands).

Compute the Laspeyres price index to compare car prices in 2010 to 2000.
A. 155.93
B. 122.19
C. 126.67
D. 147.22

93. The following data was collected comparing car prices and quantity sold
(thousands).

Compute the simple aggregate index to compare car prices in 2010 to 2000.
A. 155.93
B. 122.19
C. 126.67
D. 147.22

94. The Consumer Price Index was 122.8 (2002 = 100) for Canada All Items in 2013,
what was the purchasing power of the dollar?
A. $1.00
B. $0.33
C. $0.58
D. $0.81
E. $0.72