Answer:
A. rose 60% from the cost of the market basket in the base year.
Explanation:
The base year of 1982-1984 represents a 100 value for the index, and anything above it, is an over 100 value.
A 60% rise in 12 years (1984 to 1996) represents an average inflation rate of 5% every year, a bit high, but still within a moderate range.
The formula to find the adjusted consumer price index is:
Adjusted CPI = (CPIn / CPIb) - 1
Where:
CPIn = consumer price index in selected year (in this case 1996)
CPIb = consumer price index in base year (in this case 1982-1984)
Answer:
Store cards are credit cards that typically can only be used at specific stores. Retailers partner with banks to offer these revolving lines of credit to customers. Store cards encourage shoppers to purchase items on credit today and pay them off over time. The advantage for the store is that you’re locked into their ecosystem; the advantage for you is that you might receive offers that are exclusive to cardholders.
The main difference between a store card and a credit card is that where a store card can only be used at a specific store, a credit card can be used anywhere that credit cards are accepted.
Explanation:
Answer:
C) Telecommuting
Explanation:
Telecommuting simply means working from your home. The internet changed our lives completely, and it is also how we work. Everyday more people are starting to work from distant locations to their "main office". This means that they can be working at their house using a computer which is connected to the company's intranet.
Some of the advantages of telecommuting is that it increases efficiency by decreasing costs (you don't have to spend time going to work and you can have your office at home), reducing employee churn rate, allowing older or disabled people to work, it is good for your health, and around 65% of telecommuters in the US have have increased their work efficiency vs. their normal office work.
Answer:
The effect on the sale of PV1 would be $3,000 and on PV2 it is $1,500
Explanation:
For computing the effect on the ordinary income, we have to do the following adjustment which is shown below:
PV1 = Sale price-adjusted basis
= $8,000 - $5,000
= $3,000
The $3,000 represent the short term capital gain, and it is a short term capital gain because the equipment is sold in less than 1 year
PV2 = Sale price-adjusted basis
= $16,000 - $18,000
= - $2,000
The $ -2,000 represents the long term capital loss , and it is a long term capital loss because the equipment is sold in more than 1 year
So, the effect on the sale of PV1 would be $3,000 and on PV2 it is $1,500 because the deduction is allowed to a maximum of $1,500
Answer:
b. greater; normal
Explanation:
Income elasticity describes the response of the demand of a certain good to the change of the income of the consumers. If the elasticity of income is greater than zero (or is positive) , then we can categorize that particular good as a "normal good". This means that as the income of the consumers increases, the demand of that particular good increases as well.
The counter part of a normal good is called inferior good. They have a negative elasticity of income, which means as the income of consumers increases, the demand of that particular good decreases.