Answer:
Option (a) is correct.
Explanation:
Given that,
In 1975:
Nominal price = $0.10
CPI = 52.3
In 2005:
Nominal price = $1.00
CPI = 191.3
1975 is the base year
Real price in 2005;
= Nominal price in 2005 × (CPI in 1975 ÷ CPI in 2005)
= $1.00 × (52.3 ÷ 191.3)
= $0.273
Therefore, the real price of tennis ball in 2005 is $0.27 in terms of 1975.
The real price of tennis ball in 1975 is $0.10 because the base year is 1975 itself.
When we are comparing the real prices of the years 2005 and 1975, we conclude that tennis ball is cheaper in 1975 as compared to 2005.
This may not be the exact answer, dear friend, but read the explanation, and you should be able to fill in the blanks...
The consumer price index is an average of the prices of the goods and services purchased by the typical urban family of four,
whereas the producer price index is an average of the prices received by producers of goods and services at all stages of the production process.
Answer:
Ending cash balance = $13,000
Explanation:
<em>A cash budget is statement that shows the estimated cash receipts and the estimated cash payments for a forth coming accounting period. In addition, it provides information about the expected cash balance for the period to which it relates.</em>
With help of a cash budget, a business can plan ahead for the usage of its surplus funds and how to finance its deficit cash position
Ending cash balance = Beginning cash balance + cash receipts - cash payment
= 3,000 + 50,000 - 40,000
Ending cash balance = $13,000
Answer:
The answers to all 3 questions are:
1. Norway
2. China and India
3. Afghanistan
Explanation:
Just completed the 2020 Edge Assignment
The expected annual medical expenses of a high-risk person is $3000 per year while that of a low-risk person is $1000 per year.
The expected annual medical expenses of a high-risk person will be calculated as:
= Probability of falling ill × Expenses in case of illness
= 30% × $10000
= 0.3 × $10000
= $3000
The expected annual medical expenses of a low-risk person will be calculated as:
= Probability of falling ill × Expenses in case of illness
= 10% × $10000
= 0.1 × $10000
= $1000
It should be noted that in a situation where the individuals are risk neutral, the low-risk persons will not buy insurance as only the high-risk individuals will be expected to buy<em> insurance.</em>
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