This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: To define a price index number, decisions about three components are necessary. Name two of those ... (Read 51 times)

darbym82

  • Hero Member
  • *****
  • Posts: 570
on: Jul 24, 2018
To define a price index number, decisions about three components are necessary. Name two of those components.

Question 2

Suppose a gallon of gasoline cost 39 cents in 1970, and in 2004 it cost 1.65 . What is the gasoline price index in 2004, using 1970 as the base year? Interpret your answer.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

jgranad15

  • Sr. Member
  • ****
  • Posts: 345
Reply #1 on: Jul 24, 2018
Answer to Question 1

ANY TWO OF THE FOLLOWING ARE OK: 1) THE BASE YEAR OR TIME PERIOD; 2) THE LIST OF GOODS AND SERVICES TO BE INCLUDED; 3) HOW TO WEIGHT THE PARTICULAR GOODS AND SERVICES.

Answer to Question 2

423; GASOLINE IN 2004 COST 423 OF WHAT IT COST IN 1970.


darbym82

  • Member
  • Posts: 570
Reply 2 on: Jul 24, 2018
YES! Correct, THANKS for helping me on my review

carojassy25

  • Member
  • Posts: 299
Reply 3 on: Yesterday
Excellent

« previous next »
 

Did you know?

Everyone has one nostril that is larger than the other.

Did you know?

Pubic lice (crabs) are usually spread through sexual contact. You cannot catch them by using a public toilet.

Did you know?

Lower drug doses for elderly patients should be used first, with titrations of the dose as tolerated to prevent unwanted drug-related pharmacodynamic effects.

Did you know?

Studies show that systolic blood pressure can be significantly lowered by taking statins. In fact, the higher the patient's baseline blood pressure, the greater the effect of statins on his or her blood pressure.

Did you know?

When blood is deoxygenated and flowing back to the heart through the veins, it is dark reddish-blue in color. Blood in the arteries that is oxygenated and flowing out to the body is bright red. Whereas arterial blood comes out in spurts, venous blood flows.

Components of the Human Body Components of the Human Body
Components of nail unit Components of nail unit
Components of the Ventral Components of the Ventral
How Much Is Enough? The Explosion In The Number of U.S. Prisoners How Much Is Enough? The Explosion In The Number of U.S. Prisoners
Components of Weight Gain during Pregnancy Components of Weight Gain during Pregnancy
Comparison number Grade 1 math Comparison number Grade 1 math
Video: Baroreceptor Reflex

For a complete list of videos, visit our video library