Deck 18: Index Relatives

Question 1

What term is used for index numbers used to compare changes in prices using a single price point as a starting point?

A) Chain base relative
B) Constant bas relative
C) Floating base relative
D) Fixed base relative

Answer 1

Fixed base relative

Question 2

The value of a large property in Spain has increased from €765,000 to €820,000 during the last year. At the same time, property prices in the region have increased 8.5% on average. Which of the following statements is TRUE?

A) The relative value of the property has decreased
B) The relative value of the property has increased
C) The relative value of the property has stayed the same
D) You cannot calculate the relative value of the property

Answer 2

The relative value of the property has decreased

Question 3

The price of Indian steel has been reported using an index price with a base set in 1995. In 2008 the index was 235 and in 2012 it was 289. Recalculate the index price for 2012, using 2008 as a new base (0 decimal place).

A) 117
B) 119
C) 121
D) 123

Answer 3

123

Question 4

The average salary (indicator) has increased by from $26,568 to $28,786 in the last 3 years. During the same time the value of silver has fallen by 53% (0.53). Calculate the Real Value Index of silver (0 decimal places).

A) 46
B) 47
C) 48
D) 49

Question 5

The average salary (indicator) in Yeman was measured as YER (Yemeni Rial) 507,000 in 2011 and YER523,000 in 2013. At the same time, the cost of a small car has increased from YER3.65 million to YER3.92 million. Using the time series deflation method, calculate the Real Value Index of the small car (0 decimal places)

A) 100
B) 104
C) 108
D) 112

Question 6

The price of diesel was Bt28.80 (Thai Baht) in January and Bt31.18 in August. Express this change as a price index (assuming January price = 100; 0 decimal places).

A) 106
B) 107
C) 108
D) 109

Question 7

Which of the following statements is TRUE if you wish to compare two sets of fixed base relatives with different bases?

A) The bases of both sets should be altered to equal 100 for the most recent time period
B) The base of one set should be altered so that figures use the same time period as a base
C) The time series trend of both data sets should be used to make a comparison
D) Such a comparison is not possible, new data should be collected using a common base

Question 8

Calculate the price of a loaf of bread at p₈ when p₀=$1.26 and I_8/0=104 (0 decimal places).

A) $1.25
B) $1.28
C) $1.31
D) $1.34

Question 9

Calculate the price index when p₀=$45.78 and p₁₂=$43.92 (0 decimal places).

A) 96
B) 100
C) 104
D) 108

Question 10

Which of the following options is the BEST definition of index numbers?

A) Numbers used to help find data in a list
B) Numbers used to express a percentage change in a variable over time
C) Numbers used to express variation in values within a dataset
D) Numbers used to link pieces of data to descriptions of their meaning