Studied by 6 people
What does an index number do?
Compares the price change of an item with its base year price
How to calculate index numbers
(price/base year price)*100
What does an index number mean?
100=increase
<100=decrease
What’s the retail price index?
Shows a rate of change of prices of everyday goods
Examples of what the RPI is about
Mortgages, food and heating
What’s the consumer price index?
Official measure of inflation used by UK government
What’s the difference between RPI and CPI?
CPI doesn’t include mortgage payments
What’s the gross domestic product?
Value of goods and services produced in a country in a given amount of time
What means an economy is in recession?
If the GDP falls for 2 or more quarters
What does a weighted index number do?
It takes into account proportions
How to calculate the weighted index number
(sum of (index number*weight))/sum of weights
What does a chain base index number do?
Compares prices from each year to the previous year
How to calculate CBIN
(price/last year’s price)*100
What kind of index numbers are RPI and CPI?
CBIN that show annual or monthly changes
What’s the crude birth rate?
Number of births per thousand of the population
What’s the crude death rate?
Number of deaths per thousand of the population
How to calculate crude rate
(number of births or deaths/total population)*1000
What’s the standard population?
Hypothetical population of 1000 people used to represent the whole population
How to calculate standard population
(number in age group/total population)*1000
What does a standardised rate do?
Allows you to compare the same age group in different populations.
How to calculate the standardised rate
(crude rate/1000)*standard population
Note 
Flashcard (90)