OC. The statement does not make sense. The value of a penny is always 1 cent. OD. The statement does not make sense. Due to inflation, a penny in the 18th century has less purchasing power than a penny today. The average price of tuition and fees at public 4-year colleges and universities increased from $1,700 in 1988 to $6,800 in 2009. Calculate the relative change in price from 1988 to 2009 and compare it to the overall rate of inflation as measured by the Consumer Price Index. Average Annual Consumer Price Index (CPI) (1982 - 1984=100) Year CPI Year CPI Year CPI 1989 124.0 2001 177.1 1990 130.7 2002 179.9 1991 136.2 2003 184.0 140.3 2004 144.5 2005 1994 148.2 2006 201.6 1995 152.4 2007 207.3 1996 156.9 2008 215.3 103.9 1997 160.5 2009 214.5 107.6 1998 163.0 2010 218.1 1986 109.6 1999 166.6 2011 224.9 113.6 2000 172.2 2012 229.6 1976 56.9 1977 60.6 Average tuition and fees in public 4-ycar colleges and universities increased by %. (Round to the nearest integer as needed.) 1978 65.2 1979 72.6 1992 188.9 1980 82.4 1993 195.3 1981 90.9 The overall rate of inflation was %. (Round to the nearest integer as needed.) 1982 96.5 1983 99.6 The increase in tuition and fees in public 1985 1987 less than 4-year colleges was 118.3 the overall 1988 equal to greater than UMENTS II
OC. The statement does not make sense. The value of a penny is always 1 cent. OD. The statement does not make sense. Due to inflation, a penny in the 18th century has less purchasing power than a penny today. The average price of tuition and fees at public 4-year colleges and universities increased from $1,700 in 1988 to $6,800 in 2009. Calculate the relative change in price from 1988 to 2009 and compare it to the overall rate of inflation as measured by the Consumer Price Index. Average Annual Consumer Price Index (CPI) (1982 - 1984=100) Year CPI Year CPI Year CPI 1989 124.0 2001 177.1 1990 130.7 2002 179.9 1991 136.2 2003 184.0 140.3 2004 144.5 2005 1994 148.2 2006 201.6 1995 152.4 2007 207.3 1996 156.9 2008 215.3 103.9 1997 160.5 2009 214.5 107.6 1998 163.0 2010 218.1 1986 109.6 1999 166.6 2011 224.9 113.6 2000 172.2 2012 229.6 1976 56.9 1977 60.6 Average tuition and fees in public 4-ycar colleges and universities increased by %. (Round to the nearest integer as needed.) 1978 65.2 1979 72.6 1992 188.9 1980 82.4 1993 195.3 1981 90.9 The overall rate of inflation was %. (Round to the nearest integer as needed.) 1982 96.5 1983 99.6 The increase in tuition and fees in public 1985 1987 less than 4-year colleges was 118.3 the overall 1988 equal to greater than UMENTS II
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:OC. The statement does not make sense. The value of a penny is always 1 cent.
OD. The statement does not make sense. Due to inflation, a penny in the 18th century has
less purchasing power than a penny today.
The average price of tuition and fees at public
4-year colleges and universities increased
from $1,700 in 1988 to $6,800 in 2009.
Calculate the relative change in price from
1988 to 2009 and compare it to the overall
rate of inflation as measured by the Consumer
Price Index.
Average Annual
Consumer Price Index (CPI)
(1982 - 1984=100)
Year
CPI
Year
CPI
Year
CPI
1989 124.0 2001 177.1
1990 130.7 2002 179.9
1991 136.2 2003 184.0
140.3 2004
144.5 2005
1994 148.2 2006 201.6
1995 152.4 2007 207.3
1996 156.9 2008 215.3
103.9 1997 160.5 2009 214.5
107.6 1998 163.0 2010 218.1
1986 109.6 1999 166.6 2011 224.9
113.6 2000 172.2 2012 229.6
1976 56.9
1977
60.6
Average tuition and fees in public 4-ycar
colleges and universities increased by %.
(Round to the nearest integer as needed.)
1978
65.2
1979 72.6
1992
188.9
1980
82.4
1993
195.3
1981
90.9
The overall rate of inflation was %.
(Round to the nearest integer as needed.)
1982
96.5
1983
99.6
The increase in tuition and fees in public
1985
1987
less than
4-year colleges was
118.3
the overall
1988
equal to
greater than
UMENTS
II
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