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Wittaler [7]
3 years ago
15

1. Assume the value of a market basket for a given year is $550 and the same basket in the base year was $500. Calculate the CPI

. 2. If the CPI for a given year is 90 then the change in prices between that year and the base year is 3. Fill in the blanks in the chart below. Start with 2009 as the base year then recalculate with 2010 as the base year.
Business
1 answer:
Cerrena [4.2K]3 years ago
3 0

Answer:

current price of the CPI basket = $550

base year's price of CPI basket = $500

CPI = (cost of basket in current year / cost of basket in base year) x 100

1) the CPI for the current year = ($550 / $500) x 100 =  110

2) if the CPI decreased to 90, it means that the economy is suffering from deflation or the decrease in the general price level. It would take a 10% decrease in the price level (deflation) to reach a CPI of 90.

3)

nominal GDP                       real GDP                      GDP deflator

$100 billion                          $80 billion                    <u>125</u>

<u>$200 billion</u>                        $100 billion                    200

<u>$240 billion</u>                        $200 billion                   120

$300 billion                        <u>$200 billion</u>                   150

$100 billion                         <u>$80 billion</u>                      125

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"The current philosophy among managers today is best described as transaction management."A. TrueB. False
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Answer:

A. True

Explanation:

Transaction management is a current philosophy among managers, in which the managers develop future-oriented processes and  and implement programs that helps to solve business problems along side bring out the best in each employee. This management philosophy can also be said to be one in which a manager undertakes personnel management, time management and also organizational management.

Cheers.

6 0
3 years ago
A businessman in New York is preparing an itinerary for a visit to seven major cities. The distance traveled, and hence the cost
enot [183]

Answer:

The answer is 5,040.

There are 5,040 different possible itineraries.

Explanation:

The number of different possible itineraries equals the number of the selection of 7 cities from a total of 7 cities where order is important.

We solve thus:

N = P^{7}_{7} = \frac{7!}{(7 - 7)!}

   = \frac{7!}{0!}

   = 7!

   = 7 X 6 X 5 X 4 X 3 X 2 X 1

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6 0
3 years ago
Introduction of checks into the payments system reduced the costs of exchanging goods and services. Another advantage of checks
sweet-ann [11.9K]

Answer:

they provide convenient receipts for purchases

Explanation:

Checks payment is a form of paying bills. They were created to allow people to make payments without carrying large amounts of cash hence convenient for purchases.They are also  are safer than other forms of payment as they are traceable; when a transaction occurs and payment is made by checks, banks usually make copies of each check and the owner remains with an underlying copy from the check book.  

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3 years ago
What is the current value of a zero-coupon bond that pays a face value of $1,000 at maturity in 7 years if the appropriate disco
zvonat [6]

The current value of a zero-coupon bond is $481.658412.

<h3>What is a zero-coupon bond?</h3>
  • A zero coupon bond (also known as a discount bond or deep discount bond) is one in which the face value is repaid at maturity.
  • That definition assumes that money has a positive time value.
  • It does not make periodic interest payments or has so-called coupons, hence the term zero coupon bond.
  • When the bond matures, the investor receives the par (or face) value.
  • Zero-coupon bonds include US Treasury bills, US savings bonds, long-term zero-coupon bonds, and any type of coupon bond that has had its coupons removed.
  • The terms zero coupon and deep discount bonds are used interchangeably.

To find the current value of a zero-coupon bond:

First, divide 11 percent by 100 to get 0.11.

  • 11%/100 = 0.11

Second, add 1 to 0.11 to get 1.11.

  • 1 + 0.11 = 1.11

Third, raise 1.11 to the seventh power to get 2.07616015.

  • 1.11⁷ = 2.07616015

Divide the face value of $1,000 by 1.2653 to find that the price to pay for the zero-coupon bond is $481.658412.

  • $1,000/1.2653 = $481.658412

Therefore, the current value of a zero-coupon bond is $481.658412.

Know more about zero-coupon bonds here:

brainly.com/question/19052418

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5 0
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Current increases in the price of gasoline are expected to persist indefinitely. Based only on this​ information, the long minus
zysi [14]

Answer:

A. relatively inelastic comma as compared to the short minus run demand

Explanation:

Price elasticity of demand is a measure of the sensitivity of demand for a good or service to changes in the price of that product. We say that the price elasticity of demand is elastic when a percentage change in the price of this good has major impacts on demand. On the contrary, we say that the price elasticity of demand is inelastic when variations in the price of goods have little or no influence on demand.  

In the short run, an increase in gasoline prices may be unwelcome by consumers who may stop buying gasoline, meaning that in the short run the demand for gasoline tends to be elastic. However, over time consumers have realized that the price hike has not been temporary and that the new price is indeed a reality. Since gasoline is a commodity of great need for car owners, the tendency is for consumers to adapt to the new price in the long run, making demand more inelastic.

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