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	716.5	807.8
J	107.2	120.9
U	88.7	100
I	77.6	87.5
R	70.4	79.4

Country C produced 707.8% 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	716.5	$\frac{716.5}{88.7}\times 100=807.8$
J	107.2	$\frac{107.2}{88.7}\times 100=120.9$
U	88.7	$\frac{88.7}{88.7}\times 100=100$
I	77.6	$\frac{77.6}{88.7}\times 100=87.5$
R	70.4	$\frac{70.4}{88.7}\times 100=79.4$

From the table, it is observed that Country C produced 707.8% more steel than Country C.