1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
oksian1 [2.3K]
3 years ago
6

g Price changes from year to year are not proportional, and consumers respond to these changes by altering their spending patter

ns. The problem this creates for inflation calculations is called a. deflation. b. inflation. c. unmeasured quality change. d. substitution bias.
Business
1 answer:
Tpy6a [65]3 years ago
6 0

Answer:

d. substitution bias.

Explanation:

Price changes from year to year are not proportional, and consumers respond to these changes by altering their spending patterns. The problem this creates for inflation calculations is called substitution bias.

A problem with the Consumer Price Index (CPI) arises from the singular fact that, when the price level of a product becomes relatively less expensive or lower, consumers tend to buy more quantity of the product and consequently, a lesser quantity of goods that are relatively more expensive.

Hence, their spending pattern changes with respect to the prices but it's not completely adjusted with the Consumer Price Index (CPI), thus, making the inflation rate to differ because of the problem of substitution bias.

You might be interested in
Pharoah Industries collected $106,000 from customers in 2019. Of the amount collected, $24,200 was for services performed in 201
vodka [1.7K]

Answer:

A. $33,200

B. $35,000

Explanation:

A. Computation for 2018 cash-basis net income

2018 cash-basis net income = $106,000 - $73,800

2018 cash-basis net income= $33,200

Therefore 2018 cash-basis net income is $33,200

(b) Computation for 2018 accrual-basis net income

2018 accrual-basis net income = ($106,000 - $24,200 + $39,400) - ( $73,800 - $29,100 + $41,500))

2018 accrual-basis net income= $121,200 - $86,200

2018 accrual-basis net income= $35,000

Therefore 2018 accrual-basis net income is $35,000

3 0
2 years ago
Me. Gareth owns a toy-manufacturing company. Which of these items in his company is an intermediate good?
kakasveta [241]
Well it is a toy manfacturing company and the intermediate good would be a toy plane
5 0
3 years ago
Read 2 more answers
Catherine is a U.S. citizen who is employed by DSC, Inc., a global company. Beginning on August 1, 2020, Catherine began working
marin [14]

Answer:

a. Is Catherine eligible for the foreign income exclusion for 2020?

Yes

b. Catherine may exclude <u>$45,104</u> from her gross income for 2020.

Explanation:

In order for Catherine to qualify for the foreign income exclusion, she must have lived in a foreign country for at least 1 one (physical presence test). She lived for more than 1 year if we combine her residence in Germany and Slovenia.  

The foreign income exclusion amount for 2020 is $107,600, and Catherine can exclude up to (153 days / 365 days) x $107,600 = $45,103.56 ≈ $45,104.

5 0
2 years ago
Data that is based on natural language, such as social media posts, comments, e-mail messages and so
konstantin123 [22]
A. Semi Structure Data
8 0
3 years ago
Monopolistic competition resembles pure competition because:
OleMash [197]

Answer:

The correct answer is D.

Explanation:

Monopolistic competition is a type of imperfect competition such that many producers sell products that are differentiated from one another as goods but not perfect substitutes (such as from branding, quality, or location). In monopolistic competition, a firm takes the prices charged by its rivals as given and ignores the impact of its own prices on the prices of other firms.

Monopolistic competitive markets:

have products that are highly differentiated, meaning that there is a perception that the goods are different for reasons other than price;

have many firms providing the good or service;

firms can freely enter and exits in the long-run;

firms can make decisions independently;

there is some degree of market power, meaning producers have some control over price; and

buyers and sellers have imperfect information.

7 0
3 years ago
Other questions:
  • Vincent and Jean are two cooks who work in a village. Each of them can either bake cakes or make pizzas. Every ingredient is rea
    15·1 answer
  • A large increase in the income level in the U.S. along with no growth in Mexico’s income level is normally expected to cause (as
    11·1 answer
  • When Americans buy goods produced in Canada, Canadians earn income from American expenditures. Does the value of this Canadian o
    14·1 answer
  • At the adjourning stage of team development, the team members are most likely to:________
    5·2 answers
  • Al Razim, a construction engineer, recently traveled to Germany in order to find investors for his real-estate project. While he
    9·1 answer
  • Suppose a company will issue new 20-year debt with a par value of $1,000 and a coupon rate of 8%, paid annually. The issue price
    10·1 answer
  • You are writing the financial analysis for a snowboarding apparel business you are hoping to open in Topeka. Which tips should y
    7·1 answer
  • bramble reported total asset s of and net income of for the current year. what is the corrected amount for toal assets and net i
    7·1 answer
  • A company sold equipment that originally cost $280,000 for $140,000 cash. the accumulated depreciation on the equipment was $140
    6·1 answer
  • The actual interest rate on a loan that is compounded monthly but expressed as an annual rate is referred to as the _____ rate.
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!