Exercise Questions

1 With reference to Figure 1, describe the trend in coffee prices from 1977 to 1992. [2]

Figure 1:

 The price of coffee generally decreased from 1977 to 1992.

 However, between 1981-1986, coffee prices rose.

2 Describe the trend in the price of malt barley over the whole period given in the figure below. [2]

 The price of malt barley generally increased.

 The price increased at a significantly faster rate in the Aug to Oct period comparing to
the Jan to Aug period.

3 Compare the changes in the value of fuel imports between 2002 and 2007 into China and the
Philippines. [2]

Table 2: Value of fuel imports in selected economies at current prices (US$ millions)
Year 2000 2001 2002 2003 2004 2005 2006 2007
China 20637 17466 19285 29189 47993 63947 89001 104930
India 17861 15826 17781 22122 31886 47356 62326 73541
Indonesia 6071 5523 7271 8512 12201 17389 17648 21994
Philippines 4095 3586 3418 3990 4986 6537 8300 10025
Malaysia 3940 3867 3781 4610 6615 9229 11745 12885

 The value of fuel imports for both China and the Philippines generally increased
between 2002 and 2007.
 The rate of increase was higher in China than that in the Philippines.
4 Using Table 1, compare the overall change in world commodity prices between 2000 and
2005 with that between 2005 and 2010. [2]

Table 1: Commodity Prices, 2000-2011

The table below shows an index of world commodity prices over the period 2000-2011.

Year 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Index 65 62 58 63 79 100 126 133 216 128 143 196
Source: International Monetary Fund (IMF)

Similarity:
 World commodity prices generally rose in both time periods.

Difference:
 However, the rate of increase was faster in 2000-2005 period than that in 2005-2010
period.
OR
 However, from 2000-2005, commodity prices fell before rising sharply whereas from
2005-2010, commodity prices rose sharply before falling.
 OR
 There was a sharp fall in world commodity prices in 2008 that occurred in the 2005 –
2010 period but no such anomaly was seen between 2000 – 2005.

5 Compare the trends in average daily ridership of MRT and buses from 2001 to 2008. [2]

Difference:
 Overall, bus ridership fell while MRT ridership rose.
OR
 Bus ridership was consistently higher than MRT ridership from 2001 to 2008.

Similarity:
 Both MRT and bus ridership rose between 2005 to 2008.
6 Compare the change in retail sales in Singapore by type of outlet between 2000 and 2004. [2]

Table 5: Singapore retail sector: retail sales index for selected types of outlets

Type of Index at Current Prices (1997=100)

Outlet 2000 2001 2002 2003 2004
Department
104.3 99.9 100.4 99.6 108.4
Stores
Supermarkets 123.0 138.3 147.1 158.5 151.1
Provision and
100.6 104.6 109.6 113.8 123.2
Sundry Shops
Total Retail
128.4 133.1 129.8 140.9 158.6
Sales

 Retail sales generally increased for all three types of outlets.

 The rate of increase was highest (or fastest) for supermarkets.

7 Using the figure below, identify the relationship between the trend in price of alcohol relative
to income and alcohol consumption. [1]

 There is an inverse relationship.

8 Calculate the Price Index in Year 2 of the following basket of goods:

Product Price in year 1 Index in year 1 Price in year 2 Index in year 2

150
Bread $0.40 100 $0.60 𝟎.𝟔
(= × 𝟏𝟎𝟎)
𝟎.𝟒

Beer $2 100 $2.20 110

Toothbrushes $1 100 $0.75 75

Newspapers $0.50 100 $0.60 120

9 Identify the base year and calculate the year-on-year (yoy) percentage change.

The base year is 1991.

Year 1990 1991 1992 1993 1994 1995

Retail Price
Index 95 100 115 140 165 150

Percentage
change (yoy) - 5.3% 15% 21.7% 17.9% -9.1%

10 With reference to Table 4, describe what has happened to the rate of inflation and the price
level in China between 2011 and 2015. [2]

Table 4: Annual average inflation rate in China as measured by the Consumer Price Index
(CPI) (%)

Average Inflation by Year

(CPI) (%)
2011 5.53
2012 2.62
2013 2.57
2014 2.06
2015 1.40

 The rate of inflation was positive but decreasing.

 The price level was increasing at a decreasing rate.

11 With reference to the table below identify the trend in prices from 2000 to 2006. [2]

% Change in
Year
Consumer Price Index (CPI)
2000 11.0
2001 8.6
2002 4.9
2003 4.6
2004 6.1
2005 4.5
2006 4

 The prices were generally increasing, but at a decreasing rate from 2000 to 2006.