Waec Model Questions Vol1 2017 Economics Question 10
Practice objective / multiple choice question 10 from the 2017 Waec Model Questions Vol1 Economics examination.
In 2020 a consumer price index (CPI) basket contains 100 kg of rice priced at ₦200 per kg and 50 kg of beans priced at ₦500 per kg. In 2021 the prices rise to ₦220 per kg for rice and ₦540 per kg for beans, while the quantities purchased change to 90 kg of rice and 55 kg of beans.\n(a) Compute the Laspeyres price index (using 2020 quantities).\n(b) Compute the Paasche price index (using 2021 quantities).\n(c) Determine the Fisher price index (geometric mean of Laspeyres and Paasche) and give the overall inflation rate to two decimal places.
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This is Waec Model Questions Vol1 2017 Economics Question 10. It is one of the objective questions from the 2017 Waec Model Questions Vol1 Economics examination.
Difficulty level: Medium .
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