# 1. Calculating inflation using a simple price index Aa AaConsider a fictional price index, the University Student Price Index (USPI), based on a survey of annuai purchases of atypical university...

1. Calculating inflation using a simple price index Aa AaConsider a fictional price index, the University Student Price Index (USPI), based on a survey of annuai purchases of atypical university student. Imagine the following table shows information on the market basket for the USPI and theprices of each of the goods in 2010, 2011, and 2012.
Document Preview:

1. Calculating inflation using a simple price index Aa AaConsider a fictional price index, the University Student Price Index (USPI), based on a survey of annuai purchases of atypical university student. Imagine the following table shows information on the market basket for the USPI and theprices of each of the goods in 2010, 2011, and XXXXXXXXXX2012Cost of Cost of Cost ofQuantity Basket Basket Basketin Basket Price (\$) (\$) Price (\$) (\$) Price (\$) (\$)Notebooks XXXXXXXXXX4Caicuiators XXXXXXXXXX104Largecoifees XXXXXXXXXX2Energy drinks XXXXXXXXXX5Textbooks XXXXXXXXXX120Total cost \$1,575Price index 100The cost of each item in the basket and the total cost of the basket are shown for 2010. Perform these sarnecaicuiations for 2011 and 2012, and enter the results in the tabie.Irnagine the base year for this price index is 2010. Calculate and enter the value of the USPI for the remaining years inthe iast row of the tabie.Between 2010 and 2011, the USPI increased by . Between 2011 and 2012, the USPI increased byWhich of the following, if true, would iliustrate why price indexes such as the USPI might overstate inflation in the costof going to university? Check ali that appiy.Q The quaIity of textbooks increased dramatically from 2010 to 2012, with textbook companies bundiing new onlinestudy aids with their books.As the price of energy drinks increased relative to the price of coffee between 2010 and 2012, studentsdecreased their consurnption of energy drinks and increased their consumption of coffee.Q Professors required students to buy 10 notebooks each, regardless of the price.AttemDts: -quinta-feira, 17 de maio de XXXXXXXXXX:37

## Solution

David answered on Dec 20 2021
Ans 1 firms earn revenue when households purchase goods and services in the market.
All the 4 options are true:
Victor earns \$800 per week working for jean and Blanchette associates.
Victor spends \$50 to purchase tax services from A-plus Accountants.
Marissa earns \$750 per week working for A-plus Accountants.
Marissa spends \$300 to draw up a will.
Only the following options represents flow of an input/output or money from a household to
firm, all other represents a flow from firm to household.
The \$50 victor spends to purchase tax from A-plus Accountants.
Marissa’s labou
Gross domestic product measures all of the following from the circular flow diagram:...
SOLUTION.PDF