Page 249 - Microsoft Word - 00 BA3 IW Prelims STUDENT.docx

Supplementary objective test questions

9.3 Prices for product Gamma have been as follows:

Year 20X1 20X2 20X3 20X4 20X5

Price $3.57 $3.89 $4.10 $4.35 $5.00

If it is decided to index the prices with a base year of 20X3, what are the
indices for 20X1 and 20X5 (to the nearest whole number)?

A 20X1: 100, 20X5: 140

B 20X1: 92, 20X5: 115

C 20X1: 87, 20X5: 122

D 20X1: 71, 20X5: 129

9.4 Calculate a relative price index (to the nearest whole number) from the
following information, using base year quantities as weighting:

Year 20X1 20X2

P 0 Q 0 P 1 Q 1

Widgets $10.50 100 $11.55 109

Wodgets $25.00 25 $26.25 30

Thingies $53.00 1,100 $54.06 1,155

A 102

B 103

C 105

D 106

243