Q.4 Calculate (i) Laspeyre's (ii) Paasche's and (iii) Fisher's price index number for 2020 from the given data, using 2018 as the base period. Prices Quantities Commodity 2018 2020 2018 2020 Ghee 140 260 70 120 Rice 75 160 60 80 Sugar 65 100 120 180 Wheat 35 70 180 240 b) Prove that Fisher's Ideal Index number satisfies the factor reversal test.

Q.4 Calculate (i) Laspeyre's (ii) Paasche's and (iii) Fisher's price index number for 2020 from the given data, using 2018 as the base period. Prices Quantities Commodity 2018 2020 2018 2020 Ghee 140 260 70 120 Rice 75 160 60 80 Sugar 65 100 120 180 Wheat 35 70 180 240 b) Prove that Fisher's Ideal Index number satisfies the factor reversal test.

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter5: Business And Economic Forecasting

Section: Chapter Questions

Problem 1.4CE

See similar textbooks

Similar questions

In a Passche index, prices are weighted according to the quantities of the various items in the base period. TRUE OR FALSE
The RPI indicator in country A is 118 in 2019 and 135 in 2020. Between 2019 and 2020 by using the natural log approach, the country experienced inflation of what percent?
Let p(t) represent the consumer price index. If the rate of inflation of the price index is constant at 5% (i.e., = 5%), and the price index has a base value of 100 at time t = 0, solve for the expression showing Р the consumer price index as a function of time. Sketch the time path of p(t).
A company selling widgets has found that the number of items sold, x, depends upon the price, p at 90000 which they're sold, according the equation z = (0.6p + 1)? Due to inflation and increasing health benefit costs, the company has been increasing the price by $0.06 per month. Find the rate at which revenue is changing when the company is selling widgets at $8 each. Revenue is decreasing by dollars per month Hint: Give your answer as a positive value.
Q-2 Compute the (a) Number of unemployed, (b) Unemployment-rate, (c) Population, and (d) Labor force participation rate, using this data:Number of employed = 1600 million Not in labour force = 725 million Number of Labour force = 2000 million
Economics Prepare a composite (weighted) index for housing construction costs in 2008, using the following data. Reference Year (/=100), S/? Туре of Housing Single units Duplex units Multiple Percent 2008, S/n? 67 49 65 44 63 25 36 56 The composite (weighted) index for housing construction costs in 2008 is...
Describe briefly the unemployment of small and mid-size business owners in the Philippines due to COVID-19 and discuss its conclusions.
What is actual-dollar analysis?
You are a member your company"s strategic planning group. Your company is in the business equipment sales and services field. You are tasked with the following: a. Using the National Income and Product Accounts, develop some benchmark measures of the overall economy and your business in order to provide a standard for judging performance. b. Distinguish between CPI and GDP deflator calculations and suggest which might be more appropriate for benchmarking your business-to-business pricing strategy. c. Employee recruitment is central to your company"s success. Distinguish between structural and cyclical unemployment. Explain how unemployment can vary between demographic groups and how this might influence your recruiting efforts. d. Since your company has operations in Europe as well as Asia, please provide some guidance on the differences in European and American labor markets that would impact your decisions on plant location, sales, and labor market hiring policies in these…
If a nation’s labor force receives a significant influx of young workers: a)frictionalunemployment will likely decrease to zero. b)the natural rate ofunemployment is likely to increase. c)the natural rate ofunemployment is likely to decrease. d)the natural rate ofunemployment is unlikely to change
If the consumer price index (CPI) says that inflation equaled 10% last year, then the chained CPI for urban consumers is likely to say that inflation equaled 9.7% last year. a) True b) False
Q26 MCQ The cost of the basket of goods in 2005 is $550 and the cost of the basket of goods in 2011 is $700. If 2005 is used as the base year, the price index for 2011 is: a) 127.2 b) 155 c) 78.5 d) 100