1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
wolverine [178]
3 years ago
12

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.

You might be interested in
Global Corporation had 58,000 shares of $20 par value common stock outstanding on July 1. Later that day the board of directors
wolverine [178]

Answer:

Jul-01

Dr Retained Earnings $324,800

Cr Common stock dividend distributable $232,000

Cr Paid-in capital in excess of par value - Common stock 92,800

Explanation:

Preparation of the journal entry to record the dividend declaration is:

Jul-01

Dr Retained Earnings $324,800

(58,000 shares x 20% x $28)

Cr Common stock dividend distributable $232,000

(58,000 shares x 20% x $20)

Cr Paid-in capital in excess of par value - Common stock 92,800

(58,000 shares x 20% x $8)

8 0
3 years ago
Which of the following is considered a constructive delivery of a gift?
Hoochie [10]

Answer:

A) giving the key to a safe-deposit box where the gift is kept

Explanation:

  • A Constructive delivery possession is that acquisition when here a symbolic transfer of property. The constructive distribution of the possession is basically a right that the property is not actually managed
  • But the donor has done something to convey the possession, but the property is of such a nature that physical possession is then not possible, the creative possession of the property is sufficient to carry out the act of gift.
7 0
3 years ago
Selecting a job based on your skills and interests is important, because on average, a person with a full time job works approxi
WINSTONCH [101]
C. 2000 hours a year.

Hope it helps!
6 0
2 years ago
In the short-run, the Sure-Screen T-Shirt Company is producing 500 units of output. Its average variable costs are $2.00 and its
Dmitry [639]

Answer:

the correct answer is $1,250

Explanation:

(The average variable costs + the average fixed costs) *  Production units

             =

The firms total costs

$2.00 + $0.50 =$2.50

$2.50 * 500= $1,250

GOOD LUCK

8 0
3 years ago
You need a 35-year, fixed-rate mortgage to buy a new home for $340,000. Your mortgage bank will lend you the money at an APR of
cluponka [151]

Answer:

$338,712

Explanation:

we must first calculate the monthly payment using the present value of an annuity formula:

present value = monthly payment x annuity factor

present value = $340,000

PV annuity factor, 0.529167%, 420 periods = 168.38268

monthly payment = $340,000 / 168.38268 = $2,019.21

Since the monthly payment was actually higher than $1,800, the balloon payment will be almost $340,000

I prepared an amortization schedule using an excel spreadsheet. During the first years, the principal is only decreasing by $1 each month

Download pdf
4 0
3 years ago
Other questions:
  • Live Forever Life Insurance Co. is selling a perpetuity contract that pays $1,600 monthly. The contract currently sells for $117
    15·1 answer
  • After exporting, the next level of commitment a firm can make to a foreign market is a contractual agreement. two of the most co
    8·2 answers
  • As noted in your text, global segmenting, targeting, and positioning are more complicated than domestic segmenting and positioni
    7·1 answer
  • The federal government does not require employees to contribute to worker's compensation insurance.
    11·2 answers
  • Q 1.31: Nathaniel and Hosea have both invested $25,000 in businesses. Now they both want to sell out and recoup their money. If
    5·1 answer
  • The Xu Corporation uses a periodic inventory system. The company has a beginning inventory of 950 units at $12 each on January 1
    7·1 answer
  • Swifty Corporation reported net sales of $690000, $730000, and $828000 in the years 2016, 2017, and 2018, respectively. If 2016
    6·1 answer
  • Juan Carlos originally hoped to purchase a home. However, because he could not earn enough money to ever afford one, he decided
    10·1 answer
  • Dreary Credit Agency processes credit applications. The labor standard at Dreary is $15 per hour, 8 hours per day (per employee)
    8·1 answer
  • 6. Which of the following is NOT true about raising capital?
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!