Question

chapter 2 introductions to agricultural economics

question 16

verify the calculations associated with the output and price indices in table 2-1? this this the full questions to the homework

dices provide a straightforward way to make comparisons. O by 5% relative to 2000. So, in Price farm Table 2-1 Price Index (Base Year 2000) OUTPUT AND PRICE INDICES FOR MILK, 1995 TO 2015 Milk Production Output Index (Million Pounds) (Base Year 2000) All Milk Price Year (S/cwt) 1995 155,292 0.93 12.74 1996 154,006 0.92 14.88 1997 156,091 0.93 13.34 1998 157,262 0.94 15.50 1999 162,589 0.97 14.36 2000 167,393 1.00 12.32 2001 165,332 0.99 14.97 2002 170,063 1.02 12.11 2003 170,394 1.02 12.52 2004 170,934 1.02 16.05 2005 176,929 1.06 15.13 2006 181,782 1.09 12.88 2007 185,654 1.11 19.13 2008 189,992 1.14 18.33 2009 189,334 1.13 12.83 2010 192,848 1.15 16.26 2011 196,245 1.17 20.14 2012 200,366 1.20 18.51 2013 201,218 1.20 20.05 2014 206,046 1.23 23.97 2015 208,633 1.25 17.08 Source: National Agricultural Statistics Service, USDA. 1.03 1.21 1.08 1.26 1.17 1.00 1.22 0.98 1.02 1.30 1.23 1.05 1.55 1.49 1.04 1.32 1.63 1.50 1.63 1.95 1.39

Answer 1

Look you have base year as 2000, so calculate index with respect to base year.

eg for year 1995, index will be value in 1995/ 2000.

Both for output index and Price Index.

In Excel,