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Nezavi [6.7K]
3 years ago
14

Suppose that households have significantly reduced their consumption of beef in response to a rise in beef prices, and substitut

ed it with a cheaper good, chicken. However, the CPI basket (i.e., consumption weights) was not adjusted accordingly. As the result, CPI inflation estimate is likely to:________.
Business
1 answer:
Gnesinka [82]3 years ago
5 0

Answer: Substitution bias:

Explanation:

Substitution bias explains a possible bias in economic index numbers if they do not incorporate data on consumer expenditures changing from products with a relatively high cost to a product with a cheaper price as the prices changes.

Substitution bias happens or can occurs when prices for products change relative to one another product. Consider how consumer expenditures are reflected in a consumer price index. Consumers will tend to buy more of the good whose price declined, and less of the now relatively more expensive good.

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What is profit or loss revaluation?​
sweet [91]

Revaluation is used to adjust the book value of a fixed asset to its current market value. ... If a revaluation results in a decrease in the carrying amount of a fixed asset, recognize the decrease in profit or loss

4 0
3 years ago
Read 2 more answers
On June 30, Sharper Corporation’s stockholders' equity section of its balance sheet appears as follows before any stock dividend
Stolb23 [73]

Answer:

Sharper Corporation's Stockholders' Equity Section of Balance Sheet:

Common Stock:

Authorized Capital 120,000, $10 par value $0

Issued capital 90,000 at $10 par = $900,000

APIC = $400,000

Retained Earnings = $310,000

Total Stockholders' Equity = $1,610,000

2 Number of shares outstanding after the dividend distribution is 90,000 shares.

Explanation:

1. The dividend per share was calculated as follows:

50% of $10 = $5 per share

Total dividends = $5 x 90,000 = $450,000.

2. The Retained Earnings changed from $760,000 to $310,000 ($760,000 - $450,000).  Dividends are paid out of retained earnings.

3. The number of shares outstanding after the distribution of dividends did not change.  It could change if there were a stock split or some shares were repurchased under Treasury Stock.

5 0
3 years ago
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mel-nik [20]

Answer:

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Explanation:

8 0
3 years ago
When customers start getting sick after eating at a popular new restaurant, the management is worried. The Centers for Disease C
Naddik [55]

A majority decision strategy would be most effective in this situation.

Explanation:

The concept of majority is a system of judgement which chooses alternatives that have a majority, which means more than half the votes.

It is the conditional decision concept used in leading policy-making bodies most often.

The majority oppression (or collective tyranny) is a flaw that is undoubtedly implicit in majority government, in which the majority of voters seek their own interests at the expense of those within the minority exclusively.

So in this scenario , the restaurant management should take everyone's decision and the majority should be executed.This is the best choice to take quickly.

6 0
3 years ago
List 5 ways banks safeguard your’e money.
liraira [26]

Answer:

1. Throwing the money into the right place in the safechase

2. Lock the safechase

3. Putting a lot of Closed Circuit Television (CCTV) in several room

4. Putting a lot of anti-theft laser sensor inside the safechase

5. Lock the bank

7 0
3 years ago
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