Answer: b. using a fixed basket of goods and, therefore, will tend to overstate inflation.
Explanation:
CPI uses a fixed basket of goods each year and measure inflation by monitoring the changes in this basket over several years/ periods.
This has the tendency to overstate inflation however, due to three(3) main reasons: Substitution bias, Quality bias and New product bias.
With substitution bias, the CPI does not take into account that when products increase in price, people will substitute them for lower priced goods. Quality bias means that CPI does not account for change in quality. New Product bias means that CPI does not account for new and better products as it uses a fixed basket.
Put together these three can cause CPI to overstate inflation by as much as 1% sometimes.
Answer:
10%
Explanation:
return on equity = net income / average equity = $65,000 / [($600,000 + $700,000) / 2] = $65,000 / $650,000 = 0.1 = 10%
Return on equity (ROE) measures the profitability of a company by comparing the net income generated in the year against the company's equity. The higher the ROE, the more profitable the company is. In this case, each dollar invested generates $0.10 in profit.
Answer:
The correct answer is letter "B": All the tactics listed in this question could be very successful in eliciting a positive voice or loyalty response in the event they become dissatisfied in the workplace.
Explanation:
Human Resources (HR) Directors must promote the training to new and existing employees because in that way they help workers to develop their professional skills and increase their efficiency which is likely to increase the productivity of the firm. The HR department must keep track of the performance of the trained employees to find out what their evolution is and check possible improvement spots. Besides, the HR department must make sure the organization is culturally diverse enough to ensure the firm is befitting from the experience or workers from different cultures.
Answer: Placing a price above equilibrium will lead to increase in price and limitation on land use will lead to reduction in supply of tobacco products.
Explanation:
Smoking has many negative impact on the bodyband some of these effects are life threatening. Smoking affects the respiratory organs and increases the risk of cancer and eventually may lead to death.
Government in different countries have put in different methods and policies to reduce smoking. Some of the policies are high tax on tobacco products, ban and enlightenment programmes.
The policies used here such as placing price above the equilibrium price and limiting the amount of land that can be used for tobacco production are good policies. Placing the price of tobacco products above equilibrium price will lead to an increase in price which might discourage people to buy tobacco related products such cigarette. Also, limitation on the land use for tobacco production will lead to decrease in supply. This means less tobacco related products will be available for people.
He can claim the car he donated as a deduction on his income tax.
But he can't get a deduction of $1 for $1 there it is like a quarter or something.
This is as charitable donations reduce his total income in terms of taxes for the year. So he can claim it as a deduction on his income tax.<span />
