All categories

3 years ago

The Consumer Price Index (CPI) is best used to determine

Business

2 answers:

nlexa [21]3 years ago

8 0

The answer is "B) the rate of inflation".

Inflation alludes to a general increment in the Consumer Price Index (CPI), which is a weighted normal of costs for various products. The arrangement of products that make up the record relies upon which are viewed as illustrative of a typical utilization crate. Therefore, contingent upon the nation and the utilization propensities for most of the populace, the file will include diverse merchandise. A few merchandise may record a drop in costs, though others may build, along these lines the general estimation of the CPI will rely upon the heaviness of every one of the products as for the entire bin. Yearly expansion, alludes to the percent change of the CPI contrasted with that same month of the earlier year.

oksano4ka [1.4K]3 years ago

5 0

Option (B) is correct.

The consumer price index is best used to determine the rate of inflation.

Further Explanation:

Consumer Price Index: Consumer Price Index is a measurement that analyzes the price of various goods and services basket over the years to conclude the change in the price of the goods and services over the years.

CPI is used for determining inflation. All the identical goods and services are divided into baskets, and then the weighted average price of the basket is compared to the prior year’s weighted average price. It measures the change in the price. Inflation is the increase in the price of goods over the years. The comparison of the prices of several years would be helpful for determining the inflation rate for the current year.

Thus, the Consumer Price Index (CPI) is the best used for determining the rate of inflation.

Justification for the correct and incorrect option:

The Dow Jones Index: This is an incorrect option.

The Dow Jones Index is a stock market index. It deals with the value of the listed stocks.

The rate of inflation: This is the correct option.

Consumer Price Index is used for determining the change in the price of the goods and service over the period.

The unemployment rate: This is an incorrect option.

The unemployment rate is the rate of unemployed citizens in an economy.

Currency exchange rates: This is the incorrect option.

The currency exchange rate is the rate at which two currencies are exchanged with each other.

Learn more:

1. Learn more about the demand and supply

brainly.com/question/8794304

2. Learn more about the size of the economic pie

brainly.com/question/6156396

3. Learn more about the economy of Iceland

brainly.com/question/3640343

Answer details:

Grade: Middle School

Subject: Economics

Chapter: Inflation

Keywords: CPI, Consumer Price Index, determine, Dow Jones Index, rate of inflation, unemployment rate, currency exchange rates, goods and services, bucket, change in price, prior year, previous year, current year.

You might be interested in

Peter Company acquired 75 percent of Sally Company on January 1, 2019 for $712,500. During 2019, Sally purchased inventory for $

dezoksy [38]

Answer:

Journal entry to eliminate Sale to Peter Company

Debit : Sales Revenue (Sally Company ) $50,000

Credit : Cost of Sales (Peter Company) $50,000

Explanation:

Peter Company and Sally Company are in a group and Peter Company is the Parent whilst Sally Company is the subsidiary.

For 2019 Eliminate an Intragroup Transactions that occur between Peter Company and Sally Company.

8 0

3 years ago

Anna35 [415]

Part A

Answer and its explanation:

Interest earned in the third year can be found from following two steps

Step 1 Use compounding formula for first two years, which is as under:

Future value = Present Value * (1+r)^n

Here n is the number of years the amount would be deposited for, which is 2 years duration. And r is the rate of return which is 8% here. So the future value in the year 2 will be:

Future value = $1000 * (1 + 0.08)^2 = $1166.4

Now the interest earned in the third year is:

Interest earned in the third year = $1166.4 * 8% = $93.312

Part B

Answer and its explanation:

The simple interest is the interest arising from the principal investment made in the year zero to date and this can be calculated as under:

Simple interest = Principal investment * rate of interest * number of years

Simple Interest = $1000 * 8% * 3years = $240

And the interest arising from the compounding of interest can be found by the difference of the Future value of the investment for three years and simple interest.

So,

Interest arising through compounding of interest = FV of investment in three years time - (Simple Interest + Principal investment)

Interest arising through compounding of interest = $1000*(1+0.08)^3 -$1240

= $19.712

6 0

3 years ago

Weighted Average Method, FIFO Method, Physical Flow, Equivalent Units Heap Company manufactures a product that passes through tw

liubo4ka [24]

Answer:

Physical flow schedule

Inputs

Beginning Work in Process 86,300

Add Units Started 105,900

Total 192,200

Outputs

Units Completed and Transferred 172,900

Units in Ending Work in Process 19,300

Total 192,200

Explanation:

A physical flow schedule is simply a schedule of units introduced into the process and units outputs without expressing them to equivalent units.

Units Introduced must always be equal to units outputs in physicals terms.

Units Completed and Transferred = Beginning Inventory + Units Started - Units in Ending Work in Process

= 86,300 + 105,900 - 19,300

= 172,900

6 0

3 years ago

Consider the market for film streaming services, tv screens, and tickets at movie theaters. for each pair, identify whether they

Trava [24]

Film streaming and tv screens: Compliments (if you are watching more netflix, hulu, etc you will care more about having a good tv to watch on)

Film streaming and movie tickets: Substitutes (you will either watch netflix or go to the movies, not both at the same time)

TV screens and movie tickets: Substitutes (if you are going to the movies, it doesn't matter what kind of TV you have)

3 0

4 years ago

On subjective, socially desirable, and common dimensions, most people:

defon

Answer:

The correct answer is letter "A": see themselves as better than the average person.

Explanation:

In social psychology, individuals' self-serving bias is the point of view people have of themselves believing they are superior to others. Given a certain attribute, these kinds of individuals relate a positive outcome with their own "awesomeness" while a negative outcome is the reflection of others not being capable enough of reasoning like the individuals even though the individuals could be objectively wrong.

8 0

3 years ago