Index Nubers

Question 1

What are index numbers used for

Answer 1

To compare price changes over time

Question 2

Index number equation

Answer 2

Index number = value / value in the base year. X 100

Question 3

What can you tell from the index number

Answer 3

If the value has increased or decreased from the value in the base year

Question 4

What does an index number higher than 100 mean

Answer 4

That the value has increased

Question 5

What does am index number lower than 100 mean

Answer 5

The value has decreased

Question 6

What is RPI

Answer 6

Retail price index

Question 7

What is CPI

Answer 7

Costumer price index

Question 8

What is GDP

Answer 8

Gross domestic product

Question 9

What does the RPI show

Answer 9

The change in price of a election of goods and services in the uk

Question 10

How and when is the RPI calculated

Answer 10

Calculated monthly by comparing prices to the same month of the previous year

Question 11

What is the CPI

Answer 11

The official measure of inflation used by the uk government

Question 12

What is it used for

Answer 12

Similar to RPI but items such as council tax are excluded

Question 13

What does the government do with the CPI

Answer 13

Updates pensions and benifits in line with the CPI

Question 14

What does GDP measure

Answer 14

The value of all goods and services produced in a country in a given amount of time

Question 15

What do weighted index numbers take into account

Answer 15

Difference in proportions into account

Question 16

Weighted index number equation

Answer 16

= sum of (index number x weight) / sum of the weights

Question 17

What are chain base index numbers

Answer 17

Show how values change from year to year and always use the previous year