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SOVA2 [1]
3 years ago
8

The residents of Vegopia spend all of their income on cauliflower, broccoli, and carrots. In 2016, they spend a total of $250 fo

r 100 heads of cauliflower, $100 for 50 bunches of broccoli, and $250 for 500 carrots. In 2017, they spend a total of $210 for 60 heads of cauliflower, $180 for 90 bunches of broccoli, and $270 for 450 carrots.Year Cauliflower Broccoli Carrots
2016 2.1 1.4 0.1
2017 2.5 1.4 0.3 Using 2016 as the base year, the CPI for 2016 is______, and the CPI for 2017 is______. The inflation rate in 2017 is_____using the CPI.
Business
1 answer:
Reil [10]3 years ago
6 0

Answer:

CPI for 2016 = 100

CPI for 2017 = 110

Inflation rate in 2017 = 10%

Explanation:

Before finding Consumer Price Index (CPI), we have to calculate the market basket cost price for each year

2016 market basket cost price =

Cauliflower = $250

Broccoli      = $100

<u>Carrots       = $250</u>

Total cost = $600

2017 market basket cost price =

Cauliflower = $210

Broccoli      = $180

<u>Carrots       = $270</u>

Total cost = $660

We know, CPI = (Cost of market basket in a given year ÷ Cost of market basket in a base year) × 100

As 2016 is the base year, CPI for 2016 = ($600 ÷ $600) × 100 = 100

CPI for 2017 = ($660 ÷ $600) × 100 = 100 = 110

Again, we know, Inflation rate using the CPI = [(CPI for current year - CPI for previous year) ÷ CPI for previous year] × 100

Therefore, Inflation rate using the CPI = [(110 - 100) ÷ 100] × 100 = 10%.

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The production possibilities curve illustrates the basic principle that: Group of answer choices A) an economy will automaticall
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Answer:

The correct answer is option C.

Explanation:

The production possibility curve shows the maximum possible bundle of two goods that can be produced using all the available resources and state of technology.

Since the resources are scarce, when we produce more of one good, we need to sacrifice more and more of the other good.

If all the resources in the economy are fully employed then it is not possible to increase the production of one good without decreasing the production of the other.

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3 years ago
An idea from monetarism that has been absorbed into mainstream macroeconomics would be the Multiple Choice effects of aggregate
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5 0
2 years ago
Kim wants to invest in Beta Company’s crowdfunding equity fund. In the current 12-month period, Kim has invested $25,000 in othe
iren [92.7K]

Answer:

$65,000

Explanation:

According to Regulation Crowdfunding, an individual can invest 10% of their annual income across all crowdfunding offerings in a 12-month period.

Kim's annual income = $900,000

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6 0
3 years ago
Tonto Company purchased property for $140,000. The property included a building, equipment and land. The building was appraised
kirill [66]
<h3>Amount of cost to the building is $69,645 </h3>

Explanation:

The total property value of Tonto Company = $140,000.

The total property (building, equipment and land) value of Tonto Company = $140,000.

The building was appraised at $98,000,  

The land was appraised at $63,000  

The equipment was appraised at $36,000.

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Amount of cost to the building = $69,645

6 0
3 years ago
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