Uses of Index Numbers (AQA A-Level Economics): Quizzes
📚Quizzes
Practise the questions
10 questions from this quiz
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Practise the questions
10 questions from this quiz
What value is assigned to the base year in an index number system?
What value is assigned to the base year in an index number system?
100
An index value of 115 indicates what change from the base year?
An index value of 115 indicates what change from the base year?
15% increase
What does real GDP measure by eliminating the effects of inflation?
What does real GDP measure by eliminating the effects of inflation?
Actual quantity of goods/services produced
Which is the most comprehensive measure of inflation in the UK?
Which is the most comprehensive measure of inflation in the UK?
CPIH
Which institution uses the CPI to guide monetary policy decisions?
Which institution uses the CPI to guide monetary policy decisions?
Bank of England
What was the base value when the FTSE 100 was launched in 1984?
What was the base value when the FTSE 100 was launched in 1984?
1,000
Approximately how many goods and services are in the CPI shopping basket?
Approximately how many goods and services are in the CPI shopping basket?
700
Why are items in the CPI weighted according to household spending?
Why are items in the CPI weighted according to household spending?
Items have different budget importance
If Product A's price index is 120 (weight 2) and Product B's is 90 (weight 1), what is the weighted index?
If Product A's price index is 120 (weight 2) and Product B's is 90 (weight 1), what is the weighted index?
110
Why must index numbers share the same base year for valid comparisons?
Why must index numbers share the same base year for valid comparisons?
Different base years prevent level comparisons