Index (7) Flashcards
What is an index number
A value that compares the price of an item with a base year price
The base year price has an index number of 100
How do you calculate an index number
(Price/base year price) × 100
How can you tell if something is increasing or decreasing with index numbers
If the number is above 100 its increasing
If it is below it is decreasing
What is RPI and what does it show
Retail price index
Shows the rate of change of prices in everyday life, such as, mortgage payments food heating and petrol.
It is alos used to set the interest rate for student loans
What is CPI and what does it show
Consumer price index
Shows the rate of change of prices in everyday life not including mortgages
State pensions are updated each year to the CPI
What is GDP
Gross domestic product
The value of goods and services in a country, produces within a time period
When is an economy in recession
When is GDP fall for two or more consecutive quarters
How do you calculate a weighted index number
(Current mean weighted price ÷ base year weighted mean price) × 100
What is a chain base index number
Comparing the current price with the one before
How do you calculate chain base index number
(Price / last year’s price )×100
Are RPI and CPI chain base or regular index numbers
Chain base
What is the crude birth rate
Number of births per thousand of the population
What is crude death rate
Number of deaths per thousand of the population
How do you calculate a crude rate
( Number (e.g deaths) / total population ) × 1000
What is the standard population
A hypothetical population of 1000 people considered to represent the whole
It can be used for comparisons between population
