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krek1111 [17]
3 years ago
7

Economists use price indices to remove _______ from price measurements.

Business
1 answer:
Salsk061 [2.6K]3 years ago
3 0
The answer is C. Inflation

Price indices are a normalized average of price relatives for a given types of products ( either goods or services) in a specific region, during specific interval of time

It's provided a statistic that is designed to compare the prices while separating the inflation as a factor
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A market system is characterized by the private ownership of resources and the use of prices to coordinate economic activity tru
kodGreya [7K]
True

The market system presented in the question relates to a system of capitalism. In capitalism private ownership of resources is used to control, motivate and coordinate economic activity.

Contrast this with a system of socialism or communism, where the state, which represents the collective people, who control the ownership of resources and then use it control and coordinate economic activity. 

This contrast between private and public control of the resources is an essential component and critical idea in understanding the difference between free market systems that demand private enterprises be efficient and effective in the production and control of the resource, socialized systems which can limp along for years because of the public's support for their continuance.
8 0
3 years ago
Paul consumes only books and DVDs. At his current consumption​ bundle, his marginal utility from DVDs is 21 and from books is 4
Nat2105 [25]

Answer:

Paul is NOT maximizing his utility.

Explanation:

Given:

MU_{D} = Marginal utility from DVDs = 21

MU_{B} = Marginal utility from books = 4

P_{D} = Price of DVDS = $11

P_{B} = Price of books = $1

Under the utility maximization theory for two or more goods, utility is said to be maximized by a consumer when the ratios of the marginal utility to price per unit of each good are equal to each other. For this question, this implies that when we have:

MU_{D} / P_{D} = MU_{B} / P_{B} ………………………….. (1)

Therefore, we have:

MU_{D} / P_{D} = 21 / 11 = 1.91

MU_{B} / P_{B} = 4 / 1 = 4

Since 1.91 = MU_{D} / P_{D}  < MU_{B} / P_{B} = 4, this implies that these conditions are NOT consistent with equation (1). Therefore, Paul is NOT maximizing his utility.

In order to maximize his utility, Paul should consume more DVDs and consume less books until these conditions are consistent with equation (1).

7 0
2 years ago
Which of the following is a way for states or local governments to raise revenues immediately?
Simora [160]
A.
raise the sales tax a way for states or local governments to raise revenues immediately
8 0
3 years ago
Read 2 more answers
What is the definition of the literary term “anthropomorphic”?
antiseptic1488 [7]

Answer:

An animal that has been given human attributes. The answer is the second one.

Explanation:

7 0
2 years ago
Read 2 more answers
Real GDP per capita Multiple Choice 1. can grow either more slowly or more rapidly than real GDP. 2. cannot grow more slowly tha
Nat2105 [25]

Answer:

1) can grow either more slowly or more rapidly than real GDP.

Explanation:

Real GDP per capita is the result of dividing real GDP by the total population of a country. Real GDP per capita changes are determined by both the changes in the real GDP and the changes in the population.

If real GDP grows at a slower rate than the population, then real GDP per capita will decrease. But if real GDP grows at a faster rate than the population, then real GDP per capita will increase.

For example, real GDP grows at 3% while population grows at 2%, real GDP per capita will grow by 1%. But some countries have positive economic growth and negative population growth, so the real GDP could grow by only 2%, but since the population growth is -1%, the real GDP per capita will grow at 3%.

7 0
3 years ago
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