Exercise 1.2. Your grandparents loved The Sound of Music, and in typical fashion they

think it is better than all the trash that comes out today. Compare the box oce of The

Sound of Music with Star Wars: The Force Awakens. The Sound of Music was released

in 1965 when the average ticket price was $1.01 and grossed $159,287,539.

Exercise 1.3. Charlie Chaplin wrote, produced, directed, and starred in Modern Times in

1936, widely considered one of the greatest movies ever made. It grossed $1,400,000. The

average movie ticket price in 1936 was 25 cents. (If you have any great-grandparents, theyll

tell you.) How would Black Panther compare if it had been released in 1936? Answer:

Exercise 1.4. The movie Wonder Woman earned $412,563,408 in the U.S. in 2017. The

original Superman movie earned $134,218,018 in 1978. The average movie ticket price in

1978 was $2.34. Which movie earned more, based on earnings adjusted to 2018?

Exercise 1.5. Use Google to nd the year and U.S. gross earnings of your favorite movie,

and compare its earning to The Goodbye Girl. The Goodbye Girl was released in 1977 and

had a U.S. gross of $82,000,470. The average ticket price in 1977 was $2.23. Average movie

prices per year can also be found online.

Exercise 2.1. Compare 1995 with 2018 and 2015 with 2018 and see if median household

income keeping up with ination now.

Exercise 2.2. The minimum wage in 2000 was $5.15 per hour and in 2018 it is $7.25 per

hour. For 2000 the CPI is 172.2 and for 2018 it is 250.5. Is the minimum wage keeping up

with ination?

Exercise 2.3. In the base period, lets call it period 1, the prices of the goods are $0:50

per apple and $10 per book. Since period 1 is the base period, the CPI for this period is

CPI1 = 100. Now, suppose that the following period, period 2, the price of apples rises

to $1 and the price of books remains unchanged. Calculate the CPI for period 2 and the

ination rate between period 1 and period 2.

Exercise 2.4. The market basket for purposes of computing the consumer price index

(the CPI) in Pittsburgh contains 2 books, 10 steaks, 20 potatoes, 5 cookies, and 2 bags

of charcoal. You are given the following price data for the years 2013 through 2018 in

Pittsburgh.

Item 2013

Price

2014

Price

2015

Price

2016

Price

2017

Price

2018

Price

1 Book $5.00 $5.00 $5.00 $6.00 $6.00 $7.00

1 Steak $4.00 $5.00 $4.00 $6.00 $5.00 $7.00

1 Potato $.50 $.60 $.60 $.40 $.50 $.80

1 Cookie $1.00 $1.00 $2.00 $2.00 $1.00 $2.00

1 Bag of Charcoal $5.00 $5.00 $5.00 $6.00 $7.00 $5.00

! Enter the above data in the Spreadsheet environment in GeoGebra, and an-

swer the following questions by computing the answers within the spreadsheet.

(a) Using the above data compute the cost of each market basket. Put your answers in

the following table.

Year Cost of Basket

2013

2014

2015

2016

2017

2018

(b) Now, calculate the CPI for 2013 through 2018 using 2013 as the base year. Enter

your results in the following table. Carry your answer out to two places past the

decimal.

Year CPI

2013

2014

2015

2016

2017

2018

(c) Using the answers you got in part (b) calculate the annual rate of ination in this

economy from 2013 to each year through 2018. Enter your answers in the table

provided. Carry your answer out to two places past the decimal.

Year Rate of In

2013

2014

2015

2016

2017

2018

Exercise