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Nuetrik [128]
3 years ago
8

8. Problems and Applications Q8 Social Security benefits are increased each year in proportion to the increase in the CPI, even

though most economists believe that the CPI overstates actual inflation. True or False: If the elderly consume the same market basket as other people, then Social Security would provide an increase in their standard of living.
Business
1 answer:
qaws [65]3 years ago
5 0

Answer:

Social Security benefits are increased each year in proportion to the increase in the CPI, even though most economists believe that the CPI overstates actual inflation.

True

Explanation:

We realize that the elderly who receive Social Security do not consume the same market basket of goods and services as other people in the economy.  Assuming that the elderly do consume the same market basket as others, Social Security would provide the elderly with an improved standard of living each year since the Consumer Price Index (CPI), which represents a weighted average of a basket of goods and services, overstates inflation and Social Security payments are tied to the CPI.

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What information does a supply schedule provide?
lesya [120]

Answer:

See below

Explanation:

A supply schedule shows the quantities that suppliers are willing to sell in the market at different prices. It is a table format with quantity on one column and prices on another. As per the law of supply, high prices lead suppliers to supply more at the market.

The supply schedule illustrates in a table format the relations between the price and the quantity supplied. It will show how the quantity increase as prices increases. The supply schedule is a tabular representation of the supply curve.

7 0
3 years ago
The following information applies to the questions displayed below) Serendipity Sound, Inc., manufactures and sells compact disc
OlgaM077 [116]

Answer:

  1. $25.50
  2. 90,000 units
  3. 140,000 units

Explanation:

1. Current contribution margin ratio

= (Selling price - Variable cost)/ Selling price

= (25 - 19.8) / 25

= 0.208

New Direct labor = 5.0 * ( 1 + 8%)

= $5.40

New variable cost = 19.8 + 0.4 = $20.20

To maintain 0.208

0.208 = (Selling price - 20.20) / Selling price

0.208 * Price = Price - 20.20

0.208Price - Price = -20.20

-0.792Price = -20.20

Price = -20.20/-0.792

Price = $25.50

2. Breakeven = Fixed Cost / Contribution Margin

Contribution Margin = Selling price - Variable cost

= 25 - 19.8

= $5.20

= 468,000/5.2

= 90,000 units

3. To earn $260,000;

= (Fixed Cost + 260,000) / Contribution margin

= (468,000 + 260,000) /5.2

= 140,000 units

6 0
3 years ago
What is a product item?
Vsevolod [243]

Answer:

Explanation:

A product item is a specific version of a product that can be designated as a distinct offering among an organization's products. A product line is a group of closely related products offered by an organization.

5 0
3 years ago
Anderson Manufacturing​ Co., a small fabricator of​ plastics, needs to purchase an extrusion molding machine for ​$180 comma 000
vlabodo [156]

Answer:

1st     46,398.83

2nd    49,646.74

3rd      53,122.02

4th      56,840.56

5th       60,819.40

Explanation:

given a growing annuity we have to solve for the installement

FV = \frac{1-(1+g)^{n}\times (1+r)^{-n} }{r - g}

FV = PV (1+r)^5 = 180,000 x 1.14^5 =  346,574.62  

grow rate 0.07

interest rate 0.14

n = time     5

346,574.62 = C  \times \frac{1-(1+0.07)^{5}\times (1+0.14)^{-5} }{0.14 - 0.07}

C = 46398.8284

Now, to determiante the subsequent payment we multiply by the grow rate of 1.07

6 0
3 years ago
During January, its first month of operations, Knox Company accumulated the following manufacturing costs: raw materials $5, 310
mariarad [96]

Answer:

See the attached picture for detailed answer.

Explanation:

See the attached picture for explanation.

7 0
3 years ago
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