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Elina [12.6K]
4 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]4 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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Sheena, marketing manager for Yaard-Vark Lawn Tractors, is interested in the relationship between the prices of lawn tractors an
AlekseyPX

Answer:

Exploratory

Explanation:

Sheena, marketing manager for Yaard-Vark Lawn Tractors, is interested in the relationship between the prices of lawn tractors and the level of sales. To test whether increasing prices will lead to a change in sales and, if so, how much of a change, she should use exploratory research.

Exploratory research is the kind of research where an unknown phenomenon is worked upon. In this case, Sheena does not know the effects of prices on sales. Therefore she carries out exploratory research to fill in the blanks.

4 0
3 years ago
Business schools generally train students to follow ________ decision-making models
tatiyna
<span>Business schools generally train students to follow rational decision-making models.
These types of schools want their students to implement the knowledge they got from their studies into their everyday working lives in the future where they will have to be rational when making certain decisions in the workplace. </span>
8 0
4 years ago
The World Trade Organization (WTO) has an important role in international trade. From the list below, select all statements abou
AleksandrR [38]

Answer:

Letter A

Explanation:

The main objective of the WTO is to promote the liberalization of world trade, reducing or extinguishing trade and customs barriers to facilitate economic exchanges at the international level. The agreements involve trade in goods, services, and intellectual property.

It is also important to know that currently, the World Trade Organization has 156 member countries.

5 0
4 years ago
What function of the management process is used to monitor and ensure the organization is meeting its​ goals? A. Controlling B.
Andrews [41]

Answer: Controlling

Explanation:

Controlling is a management process which involves comparing the outcome of an organization's processes to the targets set for those processes beforehand, and taking corrective measures in case the outcome is deviating from the set targets. For example, a manager of a business running at a loss, can identify the cause of the loss and find ways of correcting the negative outcome.

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3 years ago
On September 1 the Petite-Sizes Store paid $12,000 to the Mega-Mall Co. for 3-month rent beginning September 1. Prepaid Rent was
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B) Rent Expense $4,000
Rent $4,000
6 0
4 years ago
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