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Elina [12.6K]
3 years ago
11

Changes in the CPI overstate the true inflation rate due to four​ "biases." If apple prices rise rapidly during the month while

orange prices​ fall, consumers will reduce their apple purchases and increase their orange purchases. Which of the four biases is concerned with this consumer​ behavior?
Business
1 answer:
tino4ka555 [31]3 years ago
7 0

Answer:

The answer is: Substitution bias

Explanation:

In plain simple words, substitution bias refers to the fact that the CPI considers that customers have to buy the same item and in the same quantity each month. That is something rarely happens in "normal" life. The CPI uses a fixed basket of products, that someone for some reason determined was the most representative basket of products a family buys every month. But what happens if consumers decide to not follow this given basket of goods or decides to substitute some of its products for others (instead of Coke I might decide to buy Pepsi because it offers me a 15% discount).

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Shkiper50 [21]

Answer:

1. Cash ⇒ CURRENT ASSETS, NOT A CONTRA ACCOUNT

2. Bonds Payable (due in 8 years) ⇒ LONG TERM LIABILITY, NOT A CONTRA ACCOUNT

3. Machinery ⇒ FIXED ASSET, NOT A CONTRA ACCOUNT

4. Deficit ⇒ PART OF RETAINED EARNINGS, NOT A CONTRA ACCOUNT

5. Unexpired Insurance ⇒ GENERALLY CURRENT ASSET (AT LEAST THE PORTION OF PREPAID INSURANCE THAT COVERS THE NEXT 12 MONTHS), NOT A CONTRA ACCOUNT

6. Franchise (net) ⇒ INTANGIBLE ASSET, NOT A CONTRA ACCOUNT

7. Fund to Retire Preferred Stock ⇒ LONG TERM INVESTMENT, NOT A CONTRA ACCOUNT

8. Current Portion of Mortgage Payable ⇒ CURRENT LIABILITY, NOT A CONTRA ACCOUNT

9. Accumulated Depreciation ⇒ PART OF FIXED ASSETS, CONTRA ACCOUNT

10. Copyrights ⇒ INTANGIBLE ASSET, NOT A CONTRA ACCOUNT

11. Investment in Held-to-Maturity Bonds ⇒ LONG TERM INVESTMENT, NOT A CONTRA ACCOUNT

12. Allowance for Doubtful Accounts ⇒ PART OF CURRENT ASSETS, CONTRA ACCOUNT

13. Notes Receivable (due in 3 years) ⇒ LONG TERM INVESTMENT, NOT A CONTRA ACCOUNT

14. Property Taxes Payable ⇒ CURRENT LIABILITY, NOT A CONTRA ACCOUNT

15. Deferred Taxes Payable ⇒ LONG TERM LIABILITY, NOT A CONTRA ACCOUNT

16. Additional Paid-in Capital on Preferred Stock ⇒ CONTRIBUTED CAPITAL, NOT A CONTRA ACCOUNT

17. Premium on Bonds Payable (due in 8 years) ⇒ LONG TERM LIABILITY, IT IS AN ADJUNCT ACCOUNT NOT A CONTRA ACCOUNT

18. Work in Process ⇒ CURRENT ASSET, NOT A CONTRA ACCOUNT

19. Common Stock, $1 par ⇒ CONTRIBUTED CAPITAL, NOT A CONTRA ACCOUNT

20. Land ⇒ FIXED ASSET, NOT A CONTRA ACCOUNT

21. Treasury Stock (at cost) ⇒ CONTRIBUTED CAPITAL, CONTRA ACCOUNT

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3 0
3 years ago
A firm decides to provide support services for its products for which its customers will pay extra. These services are not offer
Sindrei [870]

B) Added value

Explanation:

Added value - It is an improvement to the product or service making it more worthwhile.

Competitive advantage makes the product or service more desirable than other competitors.

In this scenario, there is no competition of the services as yet, but definitely has an added value by improving the services.

3 0
3 years ago
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<h3 />

What is a sales seminar?

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In conclusion, the company that manufactures the health products is using a <u>seminar</u> to  generate sales leads.

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3 0
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tatyana61 [14]

Answer:

2040.

Explanation:

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(50*5.60)       280

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