This website uses cookies to ensure you have the best experience. Learn more

The Difficulty Of Measuring The Cost Of Living

740 words - 3 pages

The Difficulty of Measuring the Cost of Living

Cost of living is designed to measure the costs of maintaining living
standards of working- class households. It was first introduced in

It is difficult to measure the cost of living because prices are
constantly changing, meaning cost of products will change too. Prices
will change for instance due to increases in costs or inflation, so if
a can coke was $1 in 2000, due to an increase in wage demands, costs
have increased and thus the selling price of coke has increased to $2
in 2001. This happens to many commodities in the market and as a
result of that it is difficult to measure the price of products as
that are constantly changing over a period of time.

The quality of products also changes, however this will appear on the
cost of living index. For instance computers, CD players, televisions
are of better quality now than they were before and that is why their
prices have increased. However only the price of the product will be
mentioned in the index, not the fact that its quality has been
improved. Their design and performance also changes. So a price change
will accompany the introduction of a new model or an improved design.
Therefore it is difficult to assess the real nature of the price
change. An example is the price if BMW cars has increased by 10
percent, but the quality, performance and design of the new model is
much better and superior to that of the older model, has the exchange
value increased or decreased?

Tax also affects the cost of living because; changes in indirect taxes
will affect te goods and services we purchase. Taxes will either
increase or decrease due to the fluctuating inflation rate. Changes in
the indirect tax such as VAT will be shown in the RPI. Government
price subsidies also affect goods and services prices and influence
the index making it hard to measure the cost of living.

How do you calculate the average spending of people in a country?
Everybody had different spending habits, not everyone buys the same
times or the same quantity of the same items? Therefore who is the
average spender out of millions of people in a country? What is the
average sized family in order to find out the average spending on the
cost of living? Therefore it is not a good guide how the cost of
living has changed for groups whose...

Find Another Essay On The Difficulty of Measuring the Cost of Living

The Wage Rate and the Cost of Living

618 words - 2 pages The Wage Rate and the Cost of LivingHere in the United States, the job market is not a very large one. The employers in most towns expect to pay their employees little to nothing for their services, not realizing how much it actually does cost to live in here. On the news the other day, I saw a story on the amount people are being paid, as opposed to the cost of living here in the U.S.; it said that in order to be able to make it you would have

Measuring the effectiveness of teams Essay

2026 words - 8 pages compliments for this very reason it is the cheapest way to determine if your team needs improvement and it only cost you a dollar for a compliment/complaint card or a phone call to hear the voice and opinion of the people that keep your business up and running on a regular basis.Mystery shops have become more and more often used to test the resources at your store for quality. Mystery shoppers involve an unknown individual usually outsourced from

Affects of high cost living

1047 words - 5 pages population and potential within the economy. Economist unit and name Singapore world’s most expensive city to live in 2014.” (Staff, 2014) All of these facts lead to ideas increasing tourism as a luxury because it is. I believe traveling should be a key factor in ones life to grow and learn from different cultures. When the standard of living is so expensive it gives a negative out look for some individuals to completely cross traveling off their

The US Constitution: The Difficulty of Adding an Amendment

1163 words - 5 pages The United States Constitution is considered to be more concise as well as much older than the constitutions of other nations worldwide. Although the United States Constitution is mature, there are such a limited number of amendments that have been added to the Constitution since it was created. Only twenty-seven amendments, including the Bill of Rights, have been added to the Constitution since its creation. This is not due to amendments not

The role of Difficulty in John Donne's Love poems

2909 words - 12 pages Jonson said that Donne 'for not being understood would perish.' Discuss the role of difficulty in Donne's love poems.In assessing the difficulties in reading any of Donne's love poetry it is important to first establish what is meant by the word difficult. Donne's poetry offers different levels of interpretation. Some seemingly simple phrases can have underlying sub-levels of meaning. Another difficulty is his use of imagery. Some of the imagery

The Methods of Measuring National Income

1074 words - 5 pages during the year from the country’s productive system into the hands of ultimate consumers or into the net addition to the country’s capital goods. Methods of Measuring National Income In every economy the circular flow of production, income and expenditure remains in operation continuously due to the economic activities. Production generates income which leads to the creation of demand for goods and services and hence expenditure. National

The Cost of Childcare

1717 words - 7 pages Childcare or “daycare” is one of the most commonly used resources among Americans in the United States. There are many options for childcare that parents could choose from. The cost of childcare has risen dramatically over the past year, and no one really knows who to blame for it. The average cost for one child in a childcare facility ranges from $100-$350 a week. The government offers families subsidies for childcare, but that’s only if your

The Cost of Childcare

1980 words - 8 pages cost of childcare also. America has some families making $100,000 a year and has to deduct about $30,000 a year for childcare, which then leaves them with not enough money to have for bills and leisure. Although the government offers subsidies for low-income families (living at or below 200 percent of poverty) so that their children can attend daycare, it is still is hard for families that don’t make it into the subsidy requirements to provide

The Cost of College

897 words - 4 pages Since 2004 the tuition of college has risen by nearly 60% (Tuition and Fees by Sector and State over Time 2013). College is getting increasingly expensive while finding jobs is getting more difficult. Some people are beginning to think college is not worth the cost. With the way the economy and job market have been changing some degrees may be not as useful as others. I plan to major in Computer engineering and programming at either Texas A&M

The Cost of Technology

641 words - 3 pages internet is a better option for many people than going to markets. They buy their clothes and electric devices through the internet although they know that going to stores give them larger variety and better prices. Even children now don't gather in open fields to play football but spend their time in front of computers or watching TV instead.The social cost we pay for technology is the loss of communication between people. And here I mean "real

The Cost of Marrige

713 words - 3 pages The Cost Of Marriage JeanLuke Jackson Before getting married you should ask yourself how much you are willing to spend. We all know weddings cost a lot but how much is a lot, how much does a wedding really cost? Average Wedding Cost. On average, US couples spend $25,200 for their wedding. However, the majority of couples spend between $18,900 and$31,500. This does not include cost for a honeymoon.(Wedding Budget Vs Real Wedding Cost

Similar Essays

The Difficulty Of Gymnastics Essay

2264 words - 10 pages of these athletes are the ones that make it the furthest elite level of the sport of gymnastics. These facts show the difficulty of the sport of gymnastics. While most sports require a great deal of conditioning and strength training, gymnastics requires that along with intense mental training. Injury is inevitable as the study shows that 100% of the participants got injured in the 18 month period. The sport of gymnastics is dangerous, even when

Difficulty Of The English Essay

1130 words - 5 pages The English language in today society is the most important skill a person can have. As for immigrant student it's really hard to have perfect English because of their family background. Therefore society limits their perception on immigrant students "broken" English. "Broken" English is when the speaker is limited in words, which makes it really difficult to be understood. Even teacher sometime fall into that stereotype that Asian American

Failures In Research Measuring The Standard Of Living

652 words - 3 pages Standard of living was measured by household asset and material possessions; using an INFHS standard of living index. Possessions were given a weighted average and added up. Each household was assigned to a quintile that ranges from high to lower quintile. Asset indices measure SEP at the household level in an attempt to quantify the material aspects of living conditions and its interpretation is hinged on the relationship of the individual to

Cost Of Living Analysis The Gap Between The Cost Of Living And Minimum Wage Essay

1373 words - 6 pages Living in today’s society is quiet a struggle especially for those individuals who work hard but only earning minimum wage. Minimum wage in the United States is $7.25. Certain American territories or states offer a different minimum pay higher than $7.25 but nothing below this amount. There are many controversial arguments that arise while analyzing the gap between the cost of living and minimum wage. The major argument is can individuals who