Download presentation

Presentation is loading. Please wait.

Published byCalista Thoms Modified over 4 years ago

1
Fixed Market Basket Price Index

2
A fixed market basket price index is an index number for the total cost of a fixed collection of goods and services. Instead of looking at one good, you will look at a collection of goods that are consistent over time.

3
I live in a cabin and I only buy salt, kerosene, and I hire a professional welder. Here are my purchases in 1990 (my base period). The last column is how much I spent per good/service. The total I spent was $240. I want to find my fixed market number for the year 2000 using the same quantities from 1990. Good or Service 1990 Quantity 1990 Price1990 Cost Salt100 pounds $0.50/pound $50.00 Kerosene50 gallons1.00/gallon$50.00 Welding10 hours14.00/hour$140.00

4
Here is the chart for 2000 So the total I spent was $360. Good or Service 1990 Quantity 2000 Price2000 Cost Salt100 pounds$0.80/pound$80.00 Kerosene50 gallons1.00/gallon$50.00 Welder10 hours23.00/hour$230.00

6
Practice Problems Page 326 # 5.48 (you need to add the oranges to the 1990s total price in order to find the index number). 5.52 Take about 10 mins to answer then we will study for about 10 mins, and then we will take a short quiz on normal curves, standard scores, and index numbers.

Similar presentations

OK

Steps of Addition Move your mouse over each step to see the directions.

Steps of Addition Move your mouse over each step to see the directions.

© 2018 SlidePlayer.com Inc.

All rights reserved.

By using this website, you agree with our use of **cookies** to functioning of the site. More info in our Privacy Policy and Google Privacy & Terms.

Ads by Google

Ppt on alternative energy Download ppt on indus valley civilization religion Presentations open ppt on mac Ppt on desktop video conferencing Best ppt on project tiger Ppt on shell and tube heat exchanger Ppt on water softening techniques for managing Ppt on bluetooth architecture Ppt on hindu religion holidays Ppt on word processing tools