Examlex

Solved

An Index of Clothing Prices for 2006 Based on 1985

question 48

Multiple Choice

An index of clothing prices for 2006 based on 1985 is to be constructed. The prices for 1985 and 2006 and the quantity consumed in 1985 are shown next. An index of clothing prices for 2006 based on 1985 is to be constructed. The prices for 1985 and 2006 and the quantity consumed in 1985 are shown next.   Assuming that the number sold remained constant , what is the weighted index of price for 2006 using 1985 as the base? A)  206.7 B)  214.5 C)  48.4 D)  46.6 Assuming that the number sold remained constant , what is the weighted index of price for 2006 using 1985 as the base?


Definitions:

Domestic Goods

Products that are manufactured within a country's borders, as opposed to goods imported from other countries.

Foreign Goods

Products that are produced in one country and then imported and sold in another country.

Nominal Exchange Rate

The rate at which one country's currency can be exchanged for another country's currency, without adjusting for inflation differences between the two countries.

Italian Goods

Products or merchandise that are manufactured, produced, or originated from Italy.

Related Questions