Chapter 17, Problem 1.1SR

To determine

Develop and interpret the index using Country U as based period.

Find the percent of more steel does Country C produce than Country U.

Answer to Problem 1.1SR

The index is given below:

Country	Amount	Index
C	822.7	932.8
J	110.7	125.5
U	88.2	100
I	86.5	98.1
R	71.5	81.1

Country C produced 832.8% more steel than Country C.

Explanation of Solution

Calculation:

The index using Country U as based period is obtained as follows:

Country	Amount	$\text{Index}\left(P\right)=\frac{p_t}{p_0}\times 100$
C	822.7	$\frac{822.7}{88.2}\times 100=932.8$
J	110.7	$\frac{110.7}{88.2}\times 100=125.5$
U	88.2	$\frac{88.2}{88.2}\times 100=100$
I	86.5	$\frac{86.5}{88.2}\times 100=98.1$
R	71.5	$\frac{71.5}{88.2}\times 100=81.1$

From the table, it is observed that Country C produced 832.8% more steel than Country C.