Theory of money questions | form five Economics

1. What is the difference between standard of living and cost of living?. How the standard of living and cost of living can be measured?
2. Why is the standard of living so low in less developed countries?

Answer / Solution

UNSOLVED

1. Name essentials of index numbers.
2. Given the following basket of purchases in two different years. Find the index for year two.

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UNSOLVED

Discuss the shortfalls of using price index to compare living standards among countries.

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UNSOLVED

1. Study a table below and fill in the blanks to show the terms of trade for country X from 2000 to 2004.

2. Study a table below assuming year 2000 is a base year , show changes in prices by filling in the blanks, give your comments on each year.

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UNSOLVED

Given the following data showing purchase in year 1988 and year 2000.

Calculate Paaches and Laspers price index and interpret your answer.

Answer / Solution

UNSOLVED