ECON 1 – 1

EXERCISE ON CHAPTER FIVE

Name: _________________________________________________ Score: _______________

Subject & Section: _______________________________________ Date:_______________

Computation: Show your solutions.

Compute for CPI (Consumer Price Index):

A. Identify what is in the market basket.

5 kilos of Bangus, 20 kilos of Rice and 2 kilos String Beans.

B. Find the price of each good in each year.

Year Bangus Rice String Beans

2016 100 35 40

2017 110 45 45

2018 120 55 50

C. Compute the cost of the basket of goods in each year.

Year   Cost  

2016        

2017        

2018        

D. Choose a base year and compute for the CPI.

Year   CPI  

2016  

2017  

2018      

E. Use the CPI to compute the inflation rate from the previous year.
Year   Inflation  

2017  

2018