ATTEMPT ALL QUESTIONS ON PRICE INDICES ASSIGNMENT

1        Study the table below  and answer the questions that follow:

Calculate the:

a)      Price relative for 1998

b)      Average price relative for 1998

c)      Weighted price index for 1998

d)     Average weighted price index for 1998.

2         Study the table below and answer the questions:

Determine the:

a)     Price relative

b)     Average price relative

c)     Weighted index

d)      Aggregate weighted price index. What is the implication of your answer?

3       What are the problems encountered while computing price indices?

4        How is cost of living index computed?

5         Explain the problems faced in the computation of cost of living indices.

6         Explain how Px indices are computed. Illustrate your answer

7          Why may they be unreliable indicators of cost of living?