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svp [43]
3 years ago
9

Suppose that the price of chicken rises sharply compared to the price of turkey. In response, consumers buy more turkey and less

chicken than they did in the CPI base year. In this situation the CPI will tend to ______ inflation as a result of ______ bias.
A.overstate; substitution
B.understate; substitution
C.accurately measure; substitution
D.overstate; quality adjustment
Business
1 answer:
astra-53 [7]3 years ago
3 0

Answer:

A.overstate; substitution

Explanation:

Consumer Price Index (CPI): is a measure that examines the weighted average of prices of consumer goods and services, such as transportation, food, and medical care. It is calculated by taking the average of the price changes for each item in the predetermined  goods. Changes in the CPI are used to assess price changes associated with the cost of living therefore the CPI is used economist for identifying periods of inflation or deflation.

when we say the CPI overstate inflation; it is because of:

Substitution bias (when the price of a product in the consumer basket increases substantially, consumers tend to substitute lower-priced alternatives; Therefore, it tends to overstate inflation due to a lack of accountability ) and;

Quality bias (over time, technological advances increase the life and usefulness of products).

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Jack's manufacture company have experienced inflation for the past three years as follows: the first year's periodic inflation r
ankoles [38]

Answer:

8.09%

Explanation:

Year          Inflation rate    1 + Inflation rate

1                     0.03                     1.03

2                     0.04                     1.04

3                         x                       1+x

Average rate  0.05                   0.05

1 + Average rate  = [(1+r1)*(1+r2)*(1+r3)]^(1/3)

1.05 = [1.03*1.04*(1*x)]^(1/3)

[1.0712*(1+x)] = (1.05)^3

[1.0712*(1+x)] = 1.157625

1 + x = 1.157625 / 1.0712

1 + x = 1.080681

x = 1.080681 - 1

x = 0.080681

x = 8.09%

Thus, the periodic Inflation rate in year 3 is 8.09%

5 0
2 years ago
Nothing nothing nothing
Bingel [31]

Answer:

woah nothing indeed lol

7 0
2 years ago
Read 2 more answers
Which VALS segment is most likely to have a top of the line brand new (2015) SurfaceTM Book--the Ultimate Laptop--from Microsoft
padilas [110]

Answer:

correct option is a. Innovators

Explanation:

solution

As here VALS some are as

  1. high resources : Innovators
  2. ideal : thinker and believer
  3. achievement : achiever and strivers
  4. self expression : experiences and maker
  5. low resources :  survivors

sop here Innovator segment is most likely feature in the VALS segment  to have a top of the line brand new Surface TM Book

so here correct option is a. Innovators

3 0
2 years ago
The UCC rule that says that a merchant who offers to buy, sell, or lease goods and gives a written and signed assurance on a sep
makvit [3.9K]

The UCC rule says that a merchant who offers to buy, sell, or lease goods and gives a written and signed assurance on a separate form that the offer will be held open cannot revoke the offer for the time stated or if no time is stated, for a reasonable time is referred to as the <u>Firm Offer Rule.</u>

<u></u>

<h3><u>A Firm Offer: What Is It?</u></h3>

When goods are sold, a firm offer is deemed to have been made when a guarantee to keep the offer open has been signed and the selling merchant meets the requirements for a merchant under the Uniform Commercial Code. Customers frequently ask for a definite offer so they can be certain of their cost over a predetermined period of time. A lot of retailers also request definite offers from their suppliers. Firm offers have a number of benefits, but there is a chance that things could change and the original offer would no longer be appropriate.

For instance, you might not be able to maintain the price you initially proposed due to rising raw material costs or running out of stock.

Only the time period specified in the offer is valid for firm offers. If the offer does not include a deadline, it will be valid for a maximum of three months.

Learn more about the firm offer rule with the help of the given link:

brainly.com/question/13640672?referrer=searchResults

#SPJ4

3 0
1 year ago
Most international business messages tend to be written in an informal, conversational manner. should be written following gener
Virty [35]

Answer:

should conform to the conventions of the receiver's country

Explanation:

The more an international business adapts its operations to the specific culture of the countries where it operates, the more likely it is that it will succeed, since customers are very sensitive to their own culture, and lacking this understanding can result in ineffective communication, and less sales.

For this reason, interantional business messages should conform to the conventions of the receiver's country: like this, people in the receiver country will not only understand the message clearly, but will also feel identified with it, raising their level of trust in the company.

6 0
2 years ago
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