Upon the basis of the prices of the above commodities estimate the general price level for 1900, showing the percentage of its decline or advance from the basal price level. Indicate some of the causes which may have brought about this decline or advance. 5. At a given time the following commodity prices prevailed: cotton (raw), $.10 per lb.; wheat, $1.00 per bu.; sugar, $.07 per lb.; potatoes, $1.00 per bu.; beef (for roasting), $.25 per lb.; shoes, $5.00 per pair; cotton cloth of a standard grade, $.12 per yd.; woolen cloth of a standard grade, $1.25 per yd.; men's hats, $4.00, and coal, $7.00 per ton. At a later date the prices of the same commodities were respectively as follows: $.13, $1.05, $.06, $1.10, $.30, $5.75, $.15, $1.20, $4.50 and $6.50. Tabulate these facts and compute index numbers, which will show: (1) changes in the price level of all ten commodities. (2) changes in the price level of the articles of food. (3) changes in the price level of the articles of clothing. 6. In the preceding exercise, do the data afford sufficient grounds for saying that the cost of living has moved either upward or downward? If an affirmative answer be assumed, what has been the change in the value of money? 7. Assign to each of the commodities listed above a "weight" which represents, in your opinion, its importance as an article of popular consumption. Using this system of weights compute index numbers to show changes in the price levels of the same groups of commodities. How does the weighting affect your first conclusions regarding the changes in the cost of living? What is the importance of a system of weighting? 8. If the world's annual production of gold should suddenly increase five-fold, what would be the probable effect: upon the welfare of a stock exchange speculator as compared with the welfare of a teacher; upon the welfare of the creditor class as compared with that of the debtor class; upon prices? 9. What is the function of the standard of deferred payments? What is that standard now in America? What change in it has lately been going on? How is this affecting the incomes of various classes? 10. What ought to be the characteristics of a standard unit of value? 11. Can you get a kind of money that will make the things that are sold, dearer, and the things that are bought, cheaper? 12. Is the fact of one man's gain and another man's loss by chance of any economic or political importance? 13. If every piece of money should miraculously be doubled in a night, whose interests would be affected? 14. Compare the effect of an increasing gold output upon the price of outstanding bonds with its effect upon the price of common stock already issued.