12. Suppose your market basket for a college education consisted of only the four items listed in the following table: Item Tuition and fees Room and board Books Soft drinks * * 2020 $4,500 6,000 1,000 150 2021 $5,000 6,200 1,200 200 Using 2020 as your base year, what is the percentage change in the college education price index in 2021?

12. Suppose your market basket for a college education consisted of only the four items listed in the following table: Item Tuition and fees Room and board Books Soft drinks * * 2020 $4,500 6,000 1,000 150 2021 $5,000 6,200 1,200 200 Using 2020 as your base year, what is the percentage change in the college education price index in 2021?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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number 12 please
(8) The consumer price index using a __________________________ __________________________ __________________________ __________________________ __________________________ to calculate the index value.
8 2. Average hourly earnings of all employees increased from $ 29.93 per hour to $ 31.40 per hour in the United States in the year 2021. The CPI at the beginning of 2021 was 262.20 and Increased to 280.13 by the end of 2021 in the United States The average wage increased nearly $ 1.50 per hour or an average of $ 3000 increase in annual pay . Explain in detail what this m in terms of the changes in the real wage and purchasing power of the income ,
5. Interest, inflation, and purchasing power Suppose Diamond is a sports fan and buys only football tickets. Diamond deposits $4,000 into a savings account that pays an annual nominal interest rate of 10%. Assume this interest rate is fixed, and so it will not change over time. On the day she makes her deposit, suppose that a football ticket has a price of $20.00. Initially, Diamond's $4,000 deposit has a purchasing power of football tickets. For each of the annual inflation rates given in the following table, first determine the new price of a football ticket, assuming it rises at the rate of inflation. Then enter the corresponding purchasing power of Diamond's deposit after one year in the first row of the table for each inflation rate. Finally, enter the value for the real interest rate at each of the given inflation rates. Hint: Round your answers in the first row down to the nearest football ticket. For example, if you find that the deposit will cover 20.7 football tickets, you…
Britney is a baseball fan and attends several games per season. Her expenses per season are listed in the table below: Year 1 Year 2 5 Baseball Tickets $500 $560 Jersey $120 $150 Food $150 $160 Transport $60 $70 Assuming that year 1 is the base year, calculate the price index for year 1 and for year 2. Question 3 options: 88, 100 88, 113 100, 113 100, 88
Economic General Electric paid its workers $5 a day in 1914. If the consumer price index was 10 in 1914 and 230 in 2021, how much is the GE paycheck worth in 2021 dollars?
QUESTION ONE (a) The table below shows the average monthly salary in Kenya Shillings and the respective consumer price index: Consumer Price Index Year Monthly Salary Index (CPI) 2005 20000 150 85.7 2006 21500 175 100 2007 22700 205 117 2008 23500 215 122 (i) Calculate real income and explain whether or not the material welfare of the individual improved over the five years. Calculate the deflated average salary after changing the base year from 2006 to 2008. (ii) (b) Giving examples, differentiate between open ended questions and closed ended questions. (c) Explain what is involved in piloting of a questionnaire.
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1)What is the GDP to debt ratio in USA and how has it changed in the last half century? How has CPI changed recently and who/how does that impact the population?
Using the table below, (See chapter 5 for price index) Price (per unit) Quantity (basket) 20 pounds Item 2018 (year) 2019 (year) Potato $2 $2.5 Onion 40 pounds $3 $3.1 Apple 30 pounds $1 $1.2 9. Compute the cost of the basket in each year. 10. By assuming the base year is 2018, derive price indexes of 2018 and 2019. 11. Using the price indexes from #10, calculate the inflation rate between 2018 and 2019. 12. Let's assume "nominal income" increased 4% between 2018 and 2019. Approximately how much percentage of "real income" did change between 2018 and 2019?
5. Interest, inflation, and purchasing power Suppose Amy is a cinephile and buys only movie tickets. Amy deposits $2,000 in a bank account that pays an annual nominal interest rate of 5%. Assume this interest rate is fixed-that is, it won't change over time. At the time of her deposit, a movie ticket is priced at $20.00. Initially, the purchasing power of Amy's $2,000 deposit is movie tickets. For each of the annual inflation rates given in the following table, first determine the new price of a movie ticket, assuming it rises at the rate of inflation. Then enter the corresponding purchasing power of Amy's deposit after one year in the first row of the table for each inflation rate. Finally, enter the value for the real interest rate at each of the given inflation rates. Hint: Round your answers in the first row down to the nearest movie ticket. For example, if you find that the deposit will cover 20.7 movie tickets, you would round the purchasing power down to 20 movie tickets under…
e 3 The cost of each item in the basket and the total cost of the basket are shown for 2019. Perform these same calculations for 2020 and 2021, and enter the results in the following table. Notebooks Calculators Large coffees Energy drinks Textbooks Total cost Price index Quantity in Basket 10 1 150 50 10 5 5 Price (Dollars) 5 100 1 2 100 5 5 Suppose the base year for this price index is 2019. 2019 Between 2019 and 2020, the CSPI increased by Cost (Dollars) 50 100 150 100 1,000 1,400 100 Price (Dollars) 7 110 1 3 120 2020 5 5 Cost (Dollars) I 70 110 In the last row of the table, calculate and enter the value of the CSPI for the remaining years. Price (Dollars) 11 140 1 4 150 5 5 2021 %. Between 2020 and 2021, the CSPI increased by Cost (Dollars) %. 110 140 Which of the following, if true, would illustrate why price indexes such as the CSPI might overstate inflation in the cost of going to college? Check all that apply. The quality of textbooks increased dramatically from 2019 to 2021,…