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juin [17]
3 years ago
13

When the price of a good rises, consumers tend to purchase less of it and buy a relatively less expensive good. This behavior cr

eates ____________ bias in the CPI, so the Bureau of Labor Statistics makes adjustments to the fixed basket of goods.
Business
1 answer:
Anna35 [415]3 years ago
7 0

Answer:substitution

Explanation:The substitution bias is a weakness in the Consumer Price Index that overstates inflation because it does not account for the substitution effect, when consumers choose to substitute one good for another after its price becomes cheaper than the good they normally buy.

when the price of a product in the consumer basket increases substantially, consumers tend to substitute lower-priced alternatives.

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C) starting a snow cone business

Explanation:

An entrepreneur is someone who decides to start his own business, usually a small business. Only option C refers to starting a new business.

Option A and B refer to positions where you are employed by the government (being a government employee is the opposite of being an entrepreneur).

Option D refers to painting your kitchen not opening a new business.

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Find out equilibrium price and output for the following market condition.
Ierofanga [76]

Answer:

At equilibrium demand is equal to supply therefore  

Qd=Qs

50-2P=3P

By collecting like terms

50=3P+2P

50=5P

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THEREFORE  equilibrium price  is 10

Explanation:

6 0
3 years ago
the fed took action in late 2008 to significantly decrease the federal funds rate. this action is best considered:
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At the end of 2008, the Fed took action to significantly lower the federal funds rate.The best way to describe this action is as offensive.

Quantitative facilitating is a strategy when a national bank endeavors to invigorate the economy by purchasing long haul protections.The Fed wanted to lower the interest rates on 10-year Treasury notes and mortgages.

In response to the Great Recession, what actions did the Federal Reserve take?

To lower interest rates, it bought on the open market.

The Federal Funds Rate—also known as the Federal Funds Target Rate or the Fed Funds Rate—is set by the Federal Open Markets Committee (FOMC) to direct overnight lending among U.S. banks.It is established as a range between two limits.Currently, the federal funds rate is 3.75 percent to 4%.

Learn more about Federal Funds Rate here:

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5 0
1 year ago
What is a companys obligation to contribute to the sustainability of natural resources
FrozenT [24]

Answer:

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Corporate social responsibility implies that companies are expected to engage in industrial practices that would not result in harm to their environment. For example, the amount of carbon being released into the environment must be controlled as excessive release of carbon can be detrimental to health. It is also not right for waste to be discharged into the oceans because the health of the sea animals, the ocean itself and those who swim in it are at risk.

To promote sustainability, companies avoid practices that would eventually harm their environment. Abiding by these practices might take a longer route, but is eventually cost effective and beneficial.

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