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3 years ago

3. Consider the following price indexes: 2 pts

Business

1 answer:

sergejj [24]3 years ago

6 0

Answer:

1. Which year is likely the base year?

The base year is likely to be 2018, because it has the lower consumer price index. This is because most economies show inflation (the gradual increase of the prices overtime within an economy) rather than deflation (the gradual decrease)

2. What is the inflation rate from 2018 to 2019?

Using the consumer price index (CPI) the inflation rate formula is:

Inflation rate = CPI year 2 - CPI year 1 / CPI year 1

in this case, the year 1 is our likely base year, 2018, and year 2 is 2019.

Now, we simply plug the amounts into the formula:

Inflation rate = 255.651 - 251.107 / 251.107 = 0.018 or 1.8%

So the inflation rate from 2018 to 2019 is 1.8%, a rather low number.

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You are required to spend the next year of your life in either in the past or the future. What year would you travel to and why?

elena-14-01-66 [18.8K]

I would live my life in the past because I would already know what would be happening in my life. I would be able to change the future for the better. If I were to live 1 year in the future the world can be completely different, and I wouldn't have a clue on how it changed.

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3 years ago

Read 2 more answers

On August 1 the Darius Co. purchased a photocopy machine for $8,000. The estimated annual depreciation on the machine is $1,680.

slamgirl [31]

Answer:

a) $700 debit to Depreciation Expense and a $700 credit to Accumulated Depreciation.

Explanation:

The adjusting journal entry is shown below:

On December 31

Depreciation expense $700

To Accumulated depreciation - Machine A/c $700

(Being the depreciation expense is recorded)

The computation is shown below:

= Estimated annual depreciation on the machine × number of months ÷ total number of months in a year

= $1,680 × 5 months ÷ 12 months

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3 years ago

What are the benefits of preparing a business plan?

Damm [24]

Answer:

See the whole business. Business planning done right connects the dots in your business so you get a better picture of the whole

Strategic Focus

Set priorities

Manage change

Develop accountability

Manage cash

Strategic alignment

Milestones

Explanation:

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3 years ago

What is the difference between patronage and the merit principle?

alexdok [17]

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4 years ago

When more corn is planted due to the higher demand from ethanol producers, both cattle ranchers and ethanol producers will end u

kkurt [141]

Corn is used for two purposes -

1. As feed for cattle.

2. As input in production of ethanol.

It has been stated that increase in demand from ethanol producers does not impact the demand made by cattle ranchers'.

Farmers would only respond with planting of more corn if they can get higher price.

So, it can be stated that higher demand from ethanol producers has raised the price of corn which in turn has induced the farmers to plant more corn.

However, as price of corn is rising, quantity demanded by cattle ranchers' will decline.

So, when more corn is planted due to higher demand from ethanol producers, only ethanol producers end up buying more corn while cattle ranchers' witness a decline in their purchase of corn.

In other words, cattle ranchers' will end up buying less.

So, the given statement is False.

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3 years ago