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3 years ago

With respect to the consumer price index, the substitution bias arises because:

Business

1 answer:

natita [175]3 years ago

5 0

Answer:

a. prices of goods and services do not change in the same proportion from year to year.

Explanation:

Substitution bias describes a possible bias in economic index numbers if they do not incorporate data on consumer expenditures switching from relatively more expensive products to cheaper ones as prices changed.

Substitution bias occurs when prices of items change relatively to one another. It considers how consumer expenditures are reflected in a consumer price index. Consumers will tend to buy more of the good whose price declined, and less of the now relatively more expensive good.

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In nearly half the cases in which U.S. firms have requested protection from imports, one or more companies in the industry oppos

gizmo_the_mogwai [7]

Answer:

The reason is that the companies believed that they were able to compete against global and domestic rivals.

Explanation:

The reason for companies to be against the protection is that they believed that they didn't need it because they had advantages that allow them to compete against competitors from other countries. However, if the US would have established a protection from imports, the countries of the companies affected by the measure could have established similar restrictions that wouldn't allow these companies to compete in other markets.

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3 years ago

Problem 16-12 Calculating WACC [LO1] Blitz Industries has a debt-equity ratio of 1.5. Its WACC is 7.7 percent, and its cost of d

nignag [31]

Answer:

a) 13.18%

b) 9.06%

c-1) 14.55%

c.2) 11.805%

c.3) 9.06%

Explanation:

debt = 60%, cost of debt = 5.4% x 0.75 = 4.05%

equity = 40%, Re = ?

WACC = 7.7%

7.7% = (40% x Re) + (60% x 4.05%)

7.7% = (40% x Re) + 2.43%

(40% x Re) = 5.27%

Re = 5.27% / 40% = 13.175 = 13.18%

13.18% = ReU + (ReU - 0.054) x 1.5 x (1 - 25%)

13.18% = ReU + (ReU - 0.054) x 1.125

0.1318 = ReU + 1.125Reu - 0.06075

0.19255 = 2.125ReU

ReU = 0.19255 / 2.125 = 9.06%

ReL = 9.06% + (9.06% - 5.4%) x 2 x 0.75

ReL = 14.55%

ReL = 9.06% + (9.06% - 5.4%) x 1 x 0.75

ReL = 11.805%

6 0

4 years ago

2. Raven wants to have specific departmental goals for each of her departments so that it is clear what everyone should be doing

Sedaia [141]

Sales/Advertising goal is to Identify 20 new prospects and include them to the CRM.

Purchasing/Accounting goal is Lower costs of purchase and lower risk as well as make sure of adequate security of supply.

<h3>What is the goal of sales and marketing?</h3>

Marketing is one that is centered on making brand awareness, growing market share, and as such, by Identifying 20 new prospects and include them to the CRM , will will go through all the possible names or firms and then find out the best 20 to target.

Since Purchasing/Accounting goal is Lower costs of purchase and lower risk as well as make sure of adequate security of supply, will we make sure that the purchase of raw materials are at the lowest and best price with quality product.

Learn more about goal from

brainly.com/question/25534066

#SPJ1

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2 years ago

You find a mutual fund that offers approximately 6% APR compounded

aliya0001 [1]

Answer:72.19

Explanation:

8 0

3 years ago

An optimal procedure for organizations to accept projects is to specify a return on investment (ROI) and fund only projects that

olga nikolaevna [1]

Answer:

False

Explanation:

Capital budgeting is needed in any project work as it entails the process and procedures taken in evaluation and selection of long-term investments that are consistent with the firm's goal of maximizing owner's wealth.

Normally, before a company invest or undergo any project, background work is done to know if the project will yet profit or no, feasibility study is carried out and things are put in place. If it is favourable for the firm and profit is high, firms may choose to invest after weighing the pros and cons (advantage and disadvantage) of the project before investment. So return of investment initial investment is not really considered when taking up a project as all project is done at their own risk.

7 0

3 years ago