Answer:
False
Explanation:
The consumer price index (CPI) is calculated by using a basket of goods, not all the goods and services produced in the year.
The CPI formula = (current price of CPI basket / base period's price of CPI basket) × 100
When we compare current CPI with last year's CPI we can calculate the inflation rate for the year.
The GDP deflator is also used to calculate the inflation rate. The main difference with the CPI is that the CPI might include foreign goods while the GDP deflator doesn't include foreign goods. Usually the deflator and the CPI are the same, but theoretically they could be different, but in general practice they are not.
Answer:
a free-rider problem will exist.
Explanation:
Non-Excluded goods are public goods that cannot exclude the use of a particular individual or group of persons. As a result, it is almost impossible to limit the consumption these types of goods. The Non-excludable goods contains:
1)Common pool resources: fish stocks, timber, coal
2)Public Goods: air, national defense, television
The free rider problem is an economic phenomenon that manifests itself in the fact that the consumer of the public good tries to avoid paying it.The free rider problem arises when an individual is consciously unwilling to pay for the public good, expecting to receive benefits without any payment. One of the striking examples of the manifestation of the free rider problem that is connected to the provision of public goods is the phenomenon of evading of the citizens from paying taxes.
Explanation:
Balance Column Ledger Account. An account with debit and credit columns for recording entries and a third column for showing the balance of the account after each entry is posted. the data from the balance sheet is used to set up the accounts.
Answer:
$12714.98
Explanation:
Data provided in the question:
Initial amount invested = $1,500
Simple interest rate = 6.5%
Duration for simple interest = 48 months = 4 years
Now,
Simple interest = Amount × Interest rate × Time
= $1,500 × 0.065 × 4
= $390
Therefore,
Total amount = $1500 + $390
= $1890
Now
The amount = $1890 is invested in mutual fund which is compounded annually at 21% for 10 years
thus,
Final amount = Principle × (1 + r)ⁿ
here, r = 21% = 0.21
n = 10 years
Therefore,
Final amount = $1890 × (1 + 0.21)¹⁰
= $12714.98