57In 1970, Professor Plum earned $12,000; in 1980, he earned $24,000; and in 1990, he earned$36,000. If the CPI was 40 in 1970, 60 in 1980, and 100 in 1990, then in real terms, Professor Plum's salarywas highest in1980 and lowest in 1970.а.1980 and lowest in 1990b.1990 and lowest in 1970с.d.1990 and lowest in 1980.

Option (a) is the correct option that is real income earned by professor plum is highest in the year…

Answered: 57 In 1970, Professor Plum earned…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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The consumer price index for selected years is shown in the following table. Year CPI Year CPI 2017 245.168 2013 232.957 2016 240.008 2012 229.594 2015 237.017 2011 224.939 2014 236.736 2010 218.056 Suppose Lois's salary in 2010 was $52,000, $57,000 in 2014, and $65,000 in 2016. Using the values of the CPI from the table, find her salaries in constant 2015 dollars. (Round your answers to the nearest cent.) $52,000 2015 dollars $57,000 $65,000 2015 dollars 2015 dollars
When Disney's Magic Kingdom in Orlando, Florida, opened in 1971, the price of admission was $3.50 per day. In 2020, the ticket price was $109 per day. Instructions: In parts a and c, enter your responses as a percentage rounded to the nearest whole number. In part b, round your response to two decimal places. a. By how much did the nominal price of a Disney ticket increase from 1971 to 2020? 3014 % b. The CPI index was 40.5 in 1971 and 261 in 2020. What was the 1971 price in 2020 dollars? 22.68 % c. By how much did the real price of a ticket increase from 1971 to 2020? 380 %
The cost of a gallon of gasoline was $0.57 in 1975. If the cost of gasoline grew with inflation what would the cost be in 2021? How does this compare this to the actual cost of gasoline in 2021? Explain your answer using a meaningful sentence. CPI in 1975 was 53.8 CPI in 2021 was 270.97
Complete the following table: Base Year 2014 2016 Product Quantity Price Expenditures Price Expenditures Price Expenditures Denim Jeans 1 $70 $70 $140 $140 $105 $105 Pizzas 20 14 280 20 400 18 360 Coffee Drinks 20 6 120 6 120 7 140 Total $470470 $660660 $605605 The CPI in 2014 equals nothing. (Enter your response rounded to two decimal places.)
Which of the following statements about the CPI is true? How does the PCEPI differ from the CPI? The CPI _______. A. has a bias of approximately 2.0 percentage points a year B. is a measure of the change in the amount of money that people need to spend to achieve a given standard of living C. measures all the changes in the cost of living D. is a relatively useless measure because every year new goods become available and some old goods disappear The PCEPI _______. A. uses the same market basket as the CPI but gives a greater weight to sticky-price items B. introduces even more biases into the inflation rate than the CPI C. excludes the prices of food and energy D. uses the prices of goods and services included in the consumption expenditure component of GDP
8. Suppose that Apple Inc. manufactures a new generation of iPhones that can ascertain whether your interlocutor is lying. Assuming that the price of this good will be higher than that of the currently marketed iPhone, comment on the CPI's capability to correctly measure the corresponding change in the cost of living.
. Suppose that a typical doctor earned $41,000 in 1978. In addition, you know that in 1990 atypical doctor earns $76,000. Finally, you also know that the CPI in 1978 is 210 and in 1990 is230.Given this information, a doctor's 1978 salary in 1990 dollars is $
Suppose a basket of goods and services has been selected to calculate the CPI and 2016 has been selected as the base year. In 2014, the basket's cost was $50; in 2016, the basket's cost was $52; and in 2018, the basket's cost was $58. The value of the CPI in 2018 was ☀+ F6 106.0 104.0 111.5 6 116.0 Question 16 9 F7 Y K F8 & 7 U Q Search F9 * 8 F10 ( 9 F11 O ☆ F12 ) 0 10 pts Home End P + 11 Insert
Sheila earned $65,000 in 2010, and her salary went up to $75,000 in 2020. If the CPI rose from 218 to 260 between 2010 and 2020, which of the following is true? A. Sheila's salary in 2010 is not equivalent to her salary in 2020 because she can buy more goods and services in 2020. B. The purchasing power of Sheila's salary increased between 2010 and 2020. C. The purchasing power of Sheila's salary decreased between 2010 and 2020. D. The purchasing power of Sheila's salary remained constant between 2010 and 2020. E. There was deflation between 2010 and 2020.
The following table gives the CPI basket for 2000 and 2001. Suppose that 2000 is the reference base period: Item Quantity Price Price (2000) (2000) (2001) Oranges 50 $0.90 $0.75 Bananas 100 $0.50 $0.95 Chicken 200 $2.00 $2.50 Beef 100 $5.00 $4.80 Bread 300 $1.75 $2.00 a. What is the cost of the CPI basket in 2000? b. What is the cost of the CPI basket in 2001? c. What is the CPI for 200O?

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