Foundations of Economics (8th Edition)
8th Edition
ISBN: 9780134486819
Author: Robin Bade, Michael Parkin
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Question
Chapter 23, Problem 10SPPA
To determine
To find:
The movie that had the greater real Box Office revenues; ET or TI.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
lwk I
K
The following table shows the top 10 films of all time through January 2021, measured by box office receipts in the United States, as well as several other notable films farther down the list.
The CPI in 2020 was 259. Use this information and the data in the table to calculate the box office receipts for each film in 2020 dollars. Assume that each film generated all of its box office
receipts during the year it was released. Use your results to prepare a new list of the top 10 films, based on their earnings in 2020 dollars. (Some of the films, such as the first Star Wars film, Gone
with the Wind, and Snow White and the Seven Dwarfs, were re-released several times, so their receipts were actually eamed during several different years, but we will ignore that complication.)
Fill in the real value of box office receipts in the table below. (Enter your responses rounded to one decimal place.)
Rank
1
2
3
4
5
6
7
8
9
10
18
Part 1 of 2
19
23
117
214
244
397
Film
Star Wars: Episode…
In an imaginary economy, a typical consumer basket consists of 40 candles and 15 lighter. You are given the price of these two products in three subsequent years.
Price of a Candle
Price of a Lighter
$14
$1
$15
$2
$17
$3
2017
2018
2019
Find out the CPI for 2017, 2018, and 2019. Assume the base year is 2017.
Note: Make sure to show all the steps.
For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac).
BIUS Paragraph
Arial
44
† {}
P
57
ky
X² X₂
10pt
¶ ¶
ABC
!!!
A
¶ "Ω
A
Tx
X
x
Q5
AA
:
* HA
旺图
O WORDS POWERED BY TINY
Tennis Balls Golf Balls Bottles of Gatorade 2020 price Rs.250 Rs.450 Rs.150
2020 quantity 100 100 200 2021
price Rs.25 Rs.653 Rs.255
2021 quantity 100 100 200
Using a method similar to the CPI, compute the percentage change in the overall price level
Chapter 23 Solutions
Foundations of Economics (8th Edition)
Ch. 23 - Prob. 1SPPACh. 23 - Prob. 2SPPACh. 23 - Prob. 3SPPACh. 23 - Prob. 4SPPACh. 23 - Prob. 5SPPACh. 23 - Prob. 6SPPACh. 23 - Prob. 7SPPACh. 23 - Prob. 8SPPACh. 23 - Prob. 9SPPACh. 23 - Prob. 10SPPA
Ch. 23 - Prob. 1IAPACh. 23 - Prob. 2IAPACh. 23 - Prob. 3IAPACh. 23 - Prob. 4IAPACh. 23 - Prob. 5IAPACh. 23 - Prob. 6IAPACh. 23 - Prob. 7IAPACh. 23 - Prob. 8IAPACh. 23 - Prob. 9IAPACh. 23 - Prob. 10IAPACh. 23 - Prob. 1MCQCh. 23 - Prob. 2MCQCh. 23 - Prob. 3MCQCh. 23 - Prob. 4MCQCh. 23 - Prob. 5MCQCh. 23 - Prob. 6MCQCh. 23 - Prob. 7MCQCh. 23 - Prob. 8MCQ
Knowledge Booster
Similar questions
- Year Income CPI 2012 2013 62,464 65,692 226.7 230.3 2014 2015 66,899 70,500 233.9 233.7 2016 72,904 236.9 Answer of the following questions using the data in the table above (Show the analysis): a) Provide the adjusted median incomes (convert to 2016 dollars) b) Calculate the mean of the nominal incomes c) Calculate the mean of the adjusted incomes d) Explain the importance of adjusting values for inflation (2-5 sentences)arrow_forward2018 2019 Item Quantity Price Quantity Price Books 10 €30 8 €50 Pens 20 €1 15 €2 In 2018, consumers in a hypothetical economy consumed only books and pens. The prices and quantities for 2018 and 2019 are listed in the table above. The reference base period is 2018. Calculate the CPI in 2019. Give only a numerical answer. Where needed, use only a point () for decimals (e.g., 3.25, not 3,25) and no thousands separator (e.g., 2000, not 2,000).arrow_forwardThe market basket used to calculate the CPI in Aquilonia is 4 loaves of bread, 6 gallons of milk, 2 shirts, and 2 pairs of pants. In 2005, bread cost $1.00 per loaf, milk cost $1.50 per gallon, shirts cost $6.00 each, and pants cost $10.00 per pair. In 2006, bread cost $1.50 per loaf, milk cost $2.00 per gallon, shirts cost $7.00 each, and pants cost $12.00 per pair. Using 2005 as the base year, what was Aquilonia’s inflation rate in 2006? This question is stumping me. I thought that this answer was 124.4 but it seems that it is 24.4. I cant figure it outarrow_forward
- The table shows the quantities in the CPI basket and the prices in 2018, 2019, and 2020. The reference base year is 2018. Item Quantity 2018 Price 2019 Price 2020 Price Bread 2 loaves $0.50 a loaf $0.75 a loaf $0.75 a loaf Milk 5 cartons $0.75 a carton $1.00 a carton $0.75 a carton Eggs 3 dozen $2.00 a dozen $3.00 a dozen $2.50 a dozen Calculate the cost of the CPI basket in 2019 prices and the cost of the CPI basket in 2020 prices. Calculate the CPI in 2019 and in 2020. Calculate the inflation rate in 2020. The cost of the CPI basket in 2019 prices is $nothing and the cost of the CPI basket in 2020 prices is $nothing. >>> Answer to 2 decimal places. The CPI in 2019 is nothing and the CPI in 2020 is nothing. >>> Answer to 1 decimal place. The inflation rate in 2020 is nothing percent.arrow_forwardSuppose the current CPI is 252 and in 2005 it was 196. A pair of Levi’s jeans costs $43 today. Based on the CPIs, what would you expect the 2005 price to have been for the same style of Levis, in a similar retail outlet?arrow_forwardIn 1917, US Senators received a nominal salary of $7,500, and the CPI was 17.3. In 2017, US Senators received a nominal salary of $174,000, and the CPI was 245.1. (a) Fill in the blanks in the following table with the values of US Senators' 1917 salary in terms of 2017 dollars (bottom-left cell) and of US Senators' 2017 salary in terms of 1917 dollars (top-right cell). Round to the nearest whole dollar when necessary. Units Senators' 1917 Salary Senators' 2017 Salary 1917 Dollars 7,500 Number 2017 Dollars Number (b) The purchasing power of US Senators' salaries 174,000 Click for List from 1917 to 2017.arrow_forward
- This table gives the monthly purchases of an average consumer in a small economy. Suppose 1977 is the reference base period unless stated otherwise. Item Quantity (1977) Clementines Burritos Bags of trail mix 90 Price (1977) 30 $0.10 $2.00 10 $1.00 $2.00 Find the total cost of the market basket for 1977 and 1978. Price (1978) What is the CPI in 1977 and 1978? $0.15 $2.25 Use the CPIs calculated in part b to find the inflation rate between 1977 and 1978. Recalculate the CPIs using 1978 as the base year. How does the inflation rate change?arrow_forwardThe basket cost below calculate the CPI for 2020 2018 $4000 2019 $4500 (base) 2020 $5000arrow_forwardCalculate the CPI for 2017arrow_forward
- Tennis Balls Golf Balls Bottles of Gatorade 2020 price Rs.250 Rs.450 Rs.150 2020 quantity 100 100 200 2021 price Rs.25 Rs.653 Rs.255 2021 quantity 100 100 200 a. What is the percentage change in the price of Tennis Balls? b. What is the percentage change in the price of Golf Balls? c)What is the percentage change in the price of Bottles of Gatorade?d)Using a method similar to the CPI, compute the percentage change in the overall price level.arrow_forwardCalculate the CPI, based on the following information. You must show your work to get full credit. Just providing the answer will result in a 0. Portion of Category Budget Old Price New Price Housing 50% $ 3,500 $ 3,750 2,500 $ 2,800 1,200 $ 1,900 Food 25% Transportation 25% $arrow_forwardConsider Table 1 which shows the typical basket of goods consumed by a household in a year. Calculate the CPI for each year.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Macroeconomics: Private and Public Choice (MindTa...EconomicsISBN:9781305506756Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. MacphersonPublisher:Cengage Learning
Economics: Private and Public Choice (MindTap Cou...EconomicsISBN:9781305506725Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. MacphersonPublisher:Cengage Learning
Economics (MindTap Course List)EconomicsISBN:9781337617383Author:Roger A. ArnoldPublisher:Cengage Learning
Exploring EconomicsEconomicsISBN:9781544336329Author:Robert L. SextonPublisher:SAGE Publications, Inc
Macroeconomics: Private and Public Choice (MindTa...
Economics
ISBN:9781305506756
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:Cengage Learning
Economics: Private and Public Choice (MindTap Cou...
Economics
ISBN:9781305506725
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:Cengage Learning
Economics (MindTap Course List)
Economics
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Cengage Learning
Exploring Economics
Economics
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:SAGE Publications, Inc