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2 years ago

What measures the change in prices of a basket of goods and services in a given year?

Business

2 answers:

Bogdan [553]2 years ago

8 0

Its D or inflation.

Ive took the test and tried all the answers

Strike441 [17]2 years ago

3 0

<span>The average change over time in the prices paid by urban consumers for a market basket goods and services of consumer is measured by the consumer price index. A general increase in the cost of goods and services which also measures the change in prices of a basket of goods and services in a given year is inflation.</span>

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1. What does a financial coach do?

finlep [7]

A financial coach is someone that helps their clients with the basics of money management. They help their clients develop secure, healthy money habits that will last. To become a financial cost, one would need to have worked directly with clients and completely understand their needs, know how to address their concerns, and recommend plans to them in a way that makes them feel comfortable. They must work well with numbers, and have good math skills.

4 0

3 years ago

The learning curve is:_______

never [62]

Answer:

Option C, Shows the decrease in unit cost as more of the same product is produced over time, is the right answer.

Explanation:

Option C is the correct answer because the learning curve shows the relationship between the cost of the production and output over the time period. Moreover, this curve shows the cost savings when more output is produced over time. The same can be seen in option C that the cost decreases when output rises which means there is a cost-saving.

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2 years ago

On January 1, 2012, Albert invested $6,000 at 8 percent interest per year for three years. The CPI (times 100) on January 1, 201

qaws [65]

Answer:

Inflation in 2012:

$=\frac{CPI\ 2013 - CPI\ 2012}{CPI\ 2012}$

$=\frac{110 - 100}{100}$

= 10%

Inflation in 2013:

$=\frac{CPI\ 2014 - CPI\ 2013}{CPI\ 2013}$

$=\frac{120 - 110}{110}$

= 9.09%

Inflation in 2014:

$=\frac{CPI\ 2015 - CPI\ 2014}{CPI\ 2014}$

$=\frac{126 - 120}{120}$

= 5%

Real rate of interest = Nominal - inflation

Given that,

Nominal rate = 8%

Therefore,

Real interest rate is as follows:

2012:

= 8% - 10%

= -2%

2013:

= 8% - 9.09%

= -1.09%

2014:

= 8% - 5%

= 3%

$6000 at 8% grows to:

= 1000 × 1.08

= $6,480 in one year

which is invested again to grow to $6,998.4 in two years

which is invested again to grow to $7,558.272 in three years

so,

Total gain:

$=\frac{7,558.272-6,000}{6000}\times100$

= 25.9712%

The price level increases in three years by:

$=\frac{CPI\ 2015 - CPI\ 2012}{CPI\ 2012}\times 100$

$=\frac{126 - 100}{100}\times 100$

= 26%

So,

Total real rate of return:

= Total gain - Percentage increase in prices

= 25.9712 - 26

= -0.0288%

5 0

3 years ago

A potential investor is seeking to invest $500,000 in a venture, which currently has 1,000,000 million shares held by its founde

Sergeu [11.5K]

Answer:

a, 15%

b, 150,000

c, $ 3.30

d, = $3,333,333.33

e, $3,833,333.33

Explanation:

To solve this,

Note that we have been given a similar venture to compare to our venture.

The total shareholder's equity for the other venture (P) = $10,000,000 and the net income (E) = $1,000,000

Hence, Price/Earnings (P/E) for other venture = 10,000,000/1,000,000 = 10.0

Now for our venture, Earnings in the 5th year = $500,000

Assuming that P/E ratio for both the ventures to be equal, P/500,000 = 10.0

hence, total shareholder's value for our venture = $5,000,000 --------------- (1)

Now the investor invested $500,000 and expected 50% return after 5 years, hence the investor's value after 5 years would be equal to 500,000 * (1+50%) = $750,000 --------------- (2)

Now percent ownership of venture given to investor = (Value of investor's investment after 5 years/total value of all shareholders after 5 years)

Hence, divide (2) by (1)

percent ownership of venture given to investor = 750,000/5,000,000 = 0.15

or 15%

Therefore Answer to part 'a' is = 15%

Part (b) :For the percentage ownership given to new investor = 15%, total number of shares = 1,000,000

Hence, number of shares issued to new investor = 15% x 1,000,000 = 150,000

Hence, answer to part b = 150,000

Part (c): Amount invested by new investor = $500,000 and number of shares issued to him = 150,000

hence issue price of share = Amount invested / Number of shares issued

= 500,000/150,000 = $3.33

Hence, issue price per share = $3.33

Part (d):

The Pre money valuation is the value of the company before any external funding. In this case, the number of shares held with the founders before the new investor = 1,000,000 and the equity price = $3.33

hence, Value of the venture = 3.33 * 1,000,000 = $3,333,333.33

Hence, pre money valuation of the venture = $3,333,333.33

Part (e): Post money valuation of a company is the value of the company after external funding. In this case, investor invests $500,000 to the venture increasing the value of the company by the same amount.

Hence post money valuation = pre money valuation + Investment

= 3,333,333.33 + 500,000

= 3,833,333.33

Hence, post-money valuation of the venture = $3,833,333.33

7 0

3 years ago

Leon Georges works in the warehouse for a manufacturer of air-purification systems. He is responsible for the transportation of

Volgvan

Answer:

3. Distribution

Explanation:

Distribution refers to making a product available to customers for purchase by transferring it from the source of manufacture to the retailers. Distribution is one of the essential components of marketing mix.

Channels to distribution are whole sellers, retailers, brokers and middlemen, and direct sales. Distribution entails all activities relating to supply of finished products to customers.

In the given case, Leon's work involves transportation of metal components as well as efficient movement of the finished systems from manufacturing unit to the warehouses and subsequently to distribution trucks. These represent activities of distribution.

7 0

2 years ago