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
ch4aika [34]
3 years ago
8

45. Consider a small economy in which consumers buy only two goods: pretzels and cookies. In order to compute the consumer price

index for this economy for two or more consecutive years, we assume that:
Business
1 answer:
kakasveta [241]3 years ago
8 0

Answer:

neither the number of pretzels nor the number of cookies bought by the typical consumer changes from year to year

Explanation:

a. the percentage change in the price of pretzels is equal to the percentage change in the price of cookies from year to year. b. the number of pretzels bought by the typical consumer is equal to the number of cookies bought by the typical consumer in each year. neither the number of pretzels nor the number of cookies bought by the typical consumer changes from year to year. d. neither the price of pretzels nor the price of cookies changes from year to year.

The consumer price index measures the changes in the price level of a basket of good. It is used to measure the rate of inflation.

Since the CPI measures changes in price level, it is assumed that quantities of goods purchased remains constant.

I hope my answer helps you

You might be interested in
The technique by which performers create music on the spot is known as:
lora16 [44]
It is known as improvisation.
5 0
4 years ago
What Is margin of safety?
skelet666 [1.2K]

Answer:

Margin of safety is a principle of investing in which an investor only purchases securities when their market price is significantly below their intrinsic value. ... Alternatively, in accounting, the margin of safety, or safety margin, refers to the difference between actual sales and break-even sales

5 0
2 years ago
Which statement does not accurately describe a characteristic of cash value for whole life insurance?
otez555 [7]
If this question has the same list of choices as the ones posted before, the statement that does not accurately describe a characteristic of cash value for whole life insurance is:
 "<span>Policy that accumulates cash value is less expensive than a policy that does not accumulate cash value."</span>
3 0
3 years ago
The main advantage of diversification as an investment policy is that it
Lera25 [3.4K]

Answer:

Minimising risk of loss

Explanation:

One of the most significant values of investment is to guarantee that you have a extended portfolio. The key advantage of constructing a portfolio is that it helps in Limiting danger of misfortune. If one venture performs ineffectively over a specific period, different speculations may perform better over that equivalent period, decreasing the potential misfortunes of your venture portfolio from concentrating all your capital under one kind of speculation.

4 0
3 years ago
On April 30, Gomez Services had an Accounts Receivable balance of $24,600. During the month of May, total credits to Accounts Re
Nataliya [291]

Answer: $53,600

Explanation:

Credit sales increase the balance on Accounts Receivables because they represent that people owe the business.

It is therefore included in the formula for calculating the ending balance of Accounts Receivables:

Ending accounts receivables = Beginning accounts receivable + Credit sales in May - Customer payments during May

19,000 = 24,600 + Credit Sales in May - 59,200

Credit Sales in May = 19,000 + 59,200 - 24,600

= $53,600

4 0
3 years ago
Other questions:
  • A loan that is less risky for a lender and is associated with a valuable asset is called a(n) . Rayna needs to get a new set of
    13·2 answers
  • You are given the following information: Stockholders’ equity asreported on the firm’s balance sheet = $3.75 billion, price/earn
    15·1 answer
  • Following a long period of slow​ growth, the government of country X decided to open its economy and reduce trade barriers in or
    6·1 answer
  • What is the foundation of a career strategy?
    14·2 answers
  • Suppose you had to test how well two types of soap work. describe your experiment by using terms control and variable.
    8·1 answer
  • Integrated Masters Inc. (IMI) is presently operating at 80% of capacity and manufacturing 131,000 units of a patented electronic
    10·1 answer
  • In computing depreciation, salvage value is a. The fair value of a plant asset on the date of acquisition. B. Subtracted from ac
    13·1 answer
  • A manager from a developing country is overseeing a multinational’s operations in a country where drug trafficking and lawlessne
    11·1 answer
  • At the end of 2003, Ritzcar Co. fails to accrue sales commissions earned during 2003, but paid in 2004. The error is not repeate
    12·1 answer
  • Identify each CSTO from its description
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!