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Dmitry [639]
3 years ago
11

The consumer price index is the:

Business
2 answers:
Dmitry [639]3 years ago
5 0

Answer:

B. cost of a market basket of goods and services typically consumed in the current period.

Andru [333]3 years ago
3 0

Answer:

B) cost of a market basket of goods and services typically consumed in the current period.

Explanation:

The consumer price index (CPI) measures the weighted average cost of a basket of goods that includes food, medical care, transportation, clothing, etc.

The Bureau of Labor Statistics (BLS) measures the CPI on a monthly basis since 1913 in urban areas around the country. For example, we are in March 2020, and the BLS already calculated that the CPI for February 2020 increased by 0.1% because food and shelter prices increased even though energy prices decreased.

The CPI is used to measure the inflation rate, but it doesn't measure the GDP's inflation, since the CPI includes imported goods. The CPI of the current year is matched against the CPI of a base year to determine accumulated inflation. Or it can be matched against the CPI of the previous year to calculate the inflation rate of the last year.

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MIT economist Jerry Housman has estimated the price elasticity of demand for Post Raisin Bran cereal to be -2.5 and the price el
Diano4ka-milaya [45]

Answer:

The demand for Post Raisin Brand cereal is: ELASTIC  

the demand for all types of breakfast cereals is: INELASTIC

Explanation:

To calculate the price elasticity of demand (PED) we can use the following formula:

PED = % change in quantity / % change in price

  • If PED > 1, the demand is price elastic
  • If PED = 1, the demand is price unitary
  • If PED < 1, the demand is price inelastic

*The PED always results in a negative number, e.g. price deceases, quantity increases, but for practical reasons we convert the negative number into a positive (we use absolute values) when we are determining the elasticity.

5 0
3 years ago
Why is opening a franchise often considered lower risk for an entrepreneur than setting up a new business?Please help me will gi
ivolga24 [154]

Answer:

The opportunity to grow under a famous brand and enjoy the advantages of a larger group of business owners

Explanation:

Opening a franchise is often considered a lower risk for an entrepreneur than setting up a new business because of "The opportunity to grow under a famous brand and enjoy the advantages of a larger group of business owners."

Other benefits to derived include:

1. There is operational support from the franchisor during the lifetime of the business arrangement, which may cover finances, training, accounting, etc.

2. The franchisee's management abilities can be enhanced without extra cost

3. Transactions established on proven and famous brands.

6 0
3 years ago
A stock with a beta of 0.8 has an expected rate of return of 12%. If the market return this year turns out to be 5 percentage po
Sunny_sXe [5.5K]

Answer:

The correct answer is:  The expected rate of return for the stock would be around 7%.

Explanation:

The Beta coefficient is a numeral measure that portraits the volatility of a stock compared to the overall market performance. If a stock's beta is closed to the numerical value one (1) it implies it is highly correlated to the price movement of the overall market.

In that case, if a stock's beta is 0.8 it implies it follows the market price movements. If the stock expected rate return is 12% but the market return turns out to be 5% points below expectations, it means the stock's return would end up being around 7%.

8 0
3 years ago
An investor is deciding between two projects, both of which have an initial cost of £5,000. One project will return £10,000 in t
snow_lady [41]

Answer:

The answer is: The net present value of the investments

Explanation:

The net present value calculates the current monetary value of a project's future cash flows, using a discount rate. You must remember that $1 today is worth more $1 in the future.

When deciding what projects should be financed, an investor will always look for projects with a NPV ≥ 0, and if he has to decide between two projects, the he will probably choose the project with the highest NPV.

The easiest way to calculate the net present value is to use an excel spreadsheet and the NPV function:

=NPV(rate,value 1, value 2,... value n)

5 0
3 years ago
We are able to use the concepts of W (the winning coalition) and S (the selectorate) from the Selectorate Theory to make useful
Liula [17]

Answer:

False.

Explanation:

Selectorate theory differentiates between different types of dictatorships, as well as between dictatorships and democracies. The key factor that distinguishes democracies from dictatorships is the size of the winning coalition.

8 0
3 years ago
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