Business, 28.02.2020 03:26 LuluMathLover101

The consumer price index (CPI) can be used to measure inflation. There are potential problems with this process though that can result in inflation being overstated or understated. Identify each statement according to whether it would cause inflation to be overstated, understated, or would give an accurate representation of inflation.

a. Mary and Bob replace their old minivan with a new one. The new can costs 15% more than the old one, but the new model has many updated features like a camera to assist with backing up, GPS, and better fuel economy.
b. Chris is an avid runner. He is loyal to one particular brand and buys a new pair of the same shoe every few months. The price of his shoes has doubled in the last 15 years.
c. Donna, a confirmed chocoholic. notices that her favorite candy bar shrank in size, but its price stayed the same.
d. Zach loves bagels, but bagels are becoming more expensive so he changes his breakfast routine to include a muffin instead because muffins remain relatively cheap.

Answers: 1

Show answers

Another question on Business

Business, 22.06.2019 07:00

Imagine you own an established startup with growing profits. you are looking for funding to greatly expand company operations. what method of financing would be best for you?

Answers: 2

Answer

Business, 22.06.2019 12:30

M. cotteleer electronics supplies microcomputer circuitry to a company that incorporates microprocessors into refrigerators and other home appliances. one of the components has an annual demand of 235 units, and this is constant throughout the year. carrying cost is estimated to be $1.25 per unit per year, and the ordering (setup) cost is $21 per order. a) to minimize cost, how many units should be ordered each time an order is placed? b) how many orders per year are needed with the optimal policy? c) what is the average inventory if costs are minimized? d) suppose that the ordering cost is not $21, and cotteleer has been ordering 125 units each time an order is placed. for this order policy (of q = 125) to be optimal, determine what the ordering cost would have to be.

Answers: 1

Answer

Business, 22.06.2019 23:30

As a result of a thorough physical inventory, waterway company determined that it had inventory worth $320200 at december 31, 2020. this count did not take into consideration the following facts: walker consignment currently has goods worth $47400 on its sales floor that belong to waterway but are being sold on consignment by walker. the selling price of these goods is $75900. waterway purchased $21900 of goods that were shipped on december 27, fob destination, that will be received by waterway on january 3. determine the correct amount of inventory that waterway should report.

Answers: 2

Answer

Business, 23.06.2019 02:00

Suppose that a major city’s main thoroughfare, which is also an interstate highway, will be completely closed to traffic for two years, from january 2014 to december 2015, for reconstruction at a cost of $535 million. if the construction company were to keep the highway open for traffic during construction, the highway reconstruction project would take much longer and be more expensive. suppose that construction would take four years if the highway were kept open, at a total cost of $800 million. the state department of transportation had to make its decision in 2014, one year before the start of construction (so that the first payment was one year away). so the department of transportation had the following choices: (i) close the highway during construction, at an annual cost of $267.5 million per year for two years. (ii) keep the highway open during construction, at an annual cost of $200 million per year for four years. now suppose the interest rate is 80%. calculate the present value of the costs incurred under each plan.

Answers: 3

Answer

You know the right answer?

The consumer price index (CPI) can be used to measure inflation. There are potential problems with t...

Questions