ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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Indexation is done using the CPI and is equivalent to measuring the real GDP . True O False
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- 7. 2019 2020 Price Quantity Price Quantity Rice $2.00 50 pounds $2.40 56 pounds Beans $.50 100 pounds $.90 89 pounds a. Assume that 2019 is the base year and calculate the consumer price index (CPI) for 2020. Show yourwork. b. The nominal wage was $28 in 2019, if it stayed the same in 2020, what is the real wage rate in 2020? c. Use the CPI to calculate the inflation rate for 2019? Show your work. d. What are the major flaws of using the CPI to measure inflation? List at least three.arrow_forwardNominal Average Hourly Eamings Year CPI (1982-1984 100) 1965 $265 32 2010 2259 219 The table above reports the nominal average hourly earnings in private industry and the consumer price index for 1965 and 2010. Refer to Table 20-14. The real average hourly eamings for 1965 in 2010 dollars equal Select one: a. $12.10. x b. $18.14. C. $5.80. d. $3.87.arrow_forwardPlease help quickly. I will give a thumbs up if you help fast!!arrow_forward
- n 2019 and in 2020, consumers in Dexter purchased only books and pens. The prices and quantities for 2019 and 2020 are listed in the table. The reference base period for Dexter's CPI is 2019 and 2019 is also the year of the Consumer Expenditure Survey. Calculate the CPI in 2020. The CPI in 2020 is O A. 104.0 B. 176.3 C. 56.7 D. 100.0arrow_forwardJcarrow_forward1. In an economy a typical Answer the following questions: consumer purchases 4 notebooks and 5 pens. The price of these products is given in the table below for three years. ETT Year Price of Notebook Price of Pen 2017 $4 $3 2018 $5 $3 2019 $6 $5 From the information given in the table above (assuming 2017 as the base year) calculate: • CPI fro 2017 • CPI for 2018 • CPI for 2019 • Inflation rate for 2018 • Inflation rate for 2019 2. How much of the following items would be worth in today's dollars if today's CPI is 260? • Popcorn that was sold for $7 in 2009 and the CPI in 2009 was 214 • A cup that was sold for $15 in 2015 and the CPI in 2015 was 237arrow_forward
- 2. Suppose that New Zombie has adopted the framework used by the US Bureau of Labor Statistics to calculate its labor force statistics. Following information is extracted from a database maintained by the country's ministry of labor Total population 24,512,311 personnel 98,539 People below 16 years of age 4, 240, 102 People in elderly care centers 1, 232, 130 People who didn't look for jobin 4 weeks 831,304 House wives whose sole activity is home - making 3, 424, 204 Volunteers 313,200 Self employed people 3,423,042 People who are jobless, actively looking for a job, and 2, 234 available for work Calculate the unemployment rate and the labor force of New Zombie Show your calculation (See next page for the formula and directions for this problem )arrow_forwardThe table below lists hypothetical CPI and wage values for the United States from different decades. a. Complete the table by computing the real income for each year shown in the table. Instructions: Round your answers to 2 decimal places. Nominal and Real Income Averago Nominal Wage (dollars) Averago Roal Wage dollar Ycar CPI 1967 $7 278 34.6 1977 14.019 62.2 1987 27.006 117.2 1997 38,535 166.1 2007 51, 104 213.7 2013 54,017 240.6 Instructions: Enter the year using all four numbers (yyyy). b. Of the years listed above, the paycheck of the average worker was highest in c. Of the years listed above, the purchasing power of the average worker was highest inarrow_forwardK The monthly market basket for consumers consists of pizza, t-shirts, and rent. The table below shows market basket quantities and prices for the base year (Year 1) and in the following year. Product Pizza Base Year (Year 1) Quantity Price in the Price in Base Year Year 2 20 $2.50 $3.13 T-Shirts 4 $10.00 $9.00 Rent 1 $450.00 $495.00 In Year 1, the CPI for the economy is (Round both answers to one decimal place.) In Year 2, the CPI for this economy isarrow_forward
- Answer plzz...arrow_forwardSuppose CPI in 2022 was 300, and CPI in 1995 was 150. The price pf a pound of tomatoes in 1995 was $0.68. The price of a pound of tomatoes in 2022 was $1.90. What would the price of the 2022 tomato be in 1995 dollars? That is, how much money would you need in 1995 to buy what $1.90 would buy in 2022? Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.arrow_forwardPrice (2009) $55 $35 Quantity (2010) Price Quantity (2009) Item Sneakers (2010) $60 $40 2 2. Manicures Consumers in a country buy only two goods, sneakers and manicures. The prices and quantities purchased by urban households are in the table above. The reference base year is 2009. For these data, the CPI for 2010 is O 100 O 110 O 160 O 10 O 145.arrow_forward
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