Answer:
D. classical economists the adjustment of prices to changes in the money supply is instantaneous, while economists today argue that this adjustment process takes some time.
Explanation:
The difference between the classical and modern understanding of the price level is highlighted in the Classical and Keynesian theories. The Classical model assumes that the economy moves towards full employment and is self-adjusting. It also stipulates that prices and wages are flexible based on the demands at the present time. So it simply explains changes in the short-run which automatically resolve themselves without requiring and external help from the government or any other source.
The Keynesian model was developed after the Great Depression when there was massive unemployment. It holds that the economic output reflected in the real GDP, as well as price level, can remain below its optimum potential for a long period of time, thus requiring external factors to stabilize them. Therefore, the adjustment process takes some time to be fully resolved.
Competitors have found it extremely difficult to imitate Gene Electronics Inc.'s valuable resources, capabilities, or competencies. This is primarily because the source for the company's success has been unclear. The competitors are uncertain if Gene Electronics Inc.'s success is due to its strong leadership, the skills of its research and development team, or the timing of the company' s product introductions. Gene Electronics Inc. has been protected from losing its competitive advantage as a result of
Answer:
Causal Ambiguity
Explanation:
In this specific scenario, it can be said that they have been protected from losing its competitive advantage as a result of Causal Ambiguity. This term refers to a situation where it is hard or even impossible to relate the consequences or effects of a phenomenon to its initial states or causes. This is the case because Gene Electonics Inc's success (phenomenon) cannot be traced back to an initial cause, which makes it impossible to replicate. Therefore, no other company can compete.
Flapjack Corporation had 7,824 actual direct labor hours at an actual rate of $12.03 per hour. Original production had been budgeted for 1,100 units, but only 978 units were actually produced. Labor standards were 7.1 hours per completed unit at a standard rate of $12.75 per hour. Round your answer to the nearest cent. The direct labor time variance is a.$5,625.46 unfavorable b.$5,625.46 favorable c.$11,222.55 unfavorable d.$11,222.55 favorable
Answer:
$11,220 Unfavorable
Explanation:
As we know that:
Labor Time Variance = Standard rate per hour * (Standard time for actual output - Actual time worked)
Here,
Standard rate per hour= 12.75$
Standard time for actual units = 978 units * 7.1 hour per unit = 6,944 Hours
Actual hours worked are 7,824 hours
By putting the above values, we have:
Labour time variance = $12.75 * (6,944 - 7,824) = $11,220 Unfavorable
Nola and Charles both own party planning firms in the small town of Trident, IA. Because they are the only party planners in town, they want to collude to make the price of party planning high. Classify the scenarios according to whether they are more likely to help or impede Nola and Charles colluding.
Helps collusion Impedes collusion
1. Charles develops a signature appetizer that becomes the must have in Trident
2. A party planning school opens and the new graduates are ready to plan!
3. Nola lowers her price on national television
4. Nola and Charles are regulars at the same coffee house. They talk regularly
5. Charles and Nola both charge a fixed per person price for a party
6. Nola's marginal cost is lower than Charles's.
7. Most of the parties are given by Trident's largest employer, a water bottling plant
Answer:
Nola and Charles Collusion at Trident, IA.
Helping or Impeding Scenarios:
Helping Scenarios:
4. Nola and Charles are regulars at the same coffee house. They talk regularly
5. Charles and Nola both charge a fixed per person price for a party
Impeding Scenarios:
1. Charles develops a signature appetizer that becomes the must have in Trident
2. A party planning school opens and the new graduates are ready to plan!
3. Nola lowers her price on national television
6. Nola's marginal cost is lower than Charles's.
7. Most of the parties are given by Trident's largest employer, a water bottling plant.
Explanation:
Nola and Charles can only enter a collusion agreement secretly because it is illegal. Since the agreement is secret, it is not enforceable in the court of law. The tendency for Nola and Charles to be entangled in the prisoner's dilemma is very high. It is also not possible for them to protect their collusion for very long because they have different cost bases and core competencies that derail collusion on a sustainable large scale. Graduates of party organization and other market participants, including the large firm that hosts most of the parties in the area will end the collusion before long.
Zang Co. manufacturers its products in a continuous process involving two departments, Machining and Assembly. Present entries to record the following selected transactions related to production during June:
For a compound transaction, if an amount box does not require an entry, leave it blank or enter "0".
a. Materials purchased on account, $180,000.
b. Materials requisitioned by: Machining, $73,000 direct and $9,000 indirect materials; Assembly, $4,900 indirect materials.
c. Direct labor used by Machining, $23,000, Assembly, $47,000.
d. Depreciation expenses: Machining, $4,500; Assembly, $7,800.
e. Factory overhead applied: Machining, $9,700; Assembly, $11,300.
f. Machining Department transferred $98,300 to Assembly Department; Assembly Department transferred $83,400 to finished goods.
g. Sold goods on account, $100,000. Cost of goods sold, $68,000
Answer and Explanation:
The Journal entry is shown below:-
a. Material Inventory Dr, $180,000
To Accounts Payable $180,000
(Being Material Purchased is recorded)
b. Work in progress Machining Dept. Dr, $73,000
Manufacturing Overheads Machining Dept. Dr, $9,000
Manufacturing Overheads Assembly Dept. Dr, $4,900
To Material Inventory $86,900
(Being Material issued to department is recorded)
c. Work in progress Machining Dept. Dr, $23,000
Work in progress Assembly Dept. $47,000
To Wages Payable $70,000
(Being Direct Labor used is recorded)
d. Manufacturing Overheads Machining Dept. Dr, $4,500
Man. Overheads Assembly Dept. Dr, $7,800
To Depreciation Expense $12,300
(Being Depreciation allocated is recorded)
e. Work in progress Machining Dept. Dr, $9,700
Work in progress Assembly Dept. Dr, $11,300
To Manufacturing Overheads Machining Dept. $9,700
To Manufacturing Overheads Assembly Dept. $11,300
(Being Factory overheads applied is recorded)
f. Work in progress Assembly Dept. Dr, $98,300
To Work in progress Machining Dept. $98,300
(Being WIP Transferred is recorded)
Finished Goods Inventory Dr, $83,400
To Work in progress Assembly Dept. $83,400
(Being Finished goods transferred is recorded)
g. Accounts Receivables Dr, $100,000
To Sales $100,000
(Being Goods sold on account is recorded)
Cost of Goods sold Dr, $68,000
To Finished Goods Inventory $68,000
(Being Goods sold is recorded)
Met World Series ticket prices spike after NLCS win Now that the New York Mets are in baseball's World Series for the first time in 15 years, fans who don't have a ticket will pay a hefty $1,667.82 to get one. That's the average asking price for a resold ticket, which is the highest since World Series price-tracking started in 2010. Source: CNBC, October 22, 2015 Why is a $1,667.82 ticket price similar to "price gouging"? Is the high price an example of the market price method of allocating scarce resources? Is the market for tickets efficient? Is it fair?
Answer:
The answer is " It is exceptionally high and the product of an extraordinary event".
Explanation:
The Market value or the price is bouging to its result of many an unusual occurrence of certain request or supply shock or the price values the commodity is unexpectedly inaccessible. Its price increases to is the highly inefficient and sometimes unethical amount by its supplier, that's why its price will be increased.
You are the production manager for the toy manufacturing process at the abc company. lumber company right arrow→ abc toy manufacturing company right arrow→ toy store at the mall an example of an internal supplier is
a. the toy store at the mall.
b. the receiving department at abc.
c. the shipping department at abc.
d. the lumber company.
Answer:
b. the receiving department at abc.
Explanation:
The given production process involves a process flow from Lumber Company to ABC Toy Manufacturing to Toy Store at the Mall.
The Lumber company and Toy Store are external parties in this process, with Lumber Company being the External Supplier and Toy Store at the Mall being the External Customer.
Internally we have the Receiving Department at ABC, that receives input from the Lumber Company. Processes it and sends to the Shipping Department.
Therefore internally the Receiving Department at ABC is the supplier to the Shipping Department.
Which of the following is the best characterization of sociocultural forces? a firm's culture, norms, and values a competitor's culture, norms, and values a focus group's culture, norms, and values a society's culture, norms, and values
Answer:
a society's culture, norms, and values
Explanation:
From the name socio + cultural indicates best how the culture, norms and values affect a society.
Often times the term culture refers to the general way of life of the members of a particular society. While the term norms and values refers to acceptable standards within a particular society. All this terms characterizes sociocultural forces.
Lisa lives next to a vacant plot that belongs to Carol. Carol has never visited the plot in the last 20 years during which period, Lisa has taken care of it by fencing the plot and mowing the grass. If this continues, Lisa will be able to claim ownership of land based on:
Answer:
Adverse possession.
Explanation:
In this scenario, Lisa lives next to a vacant plot that belongs to Carol. Carol has never visited the plot in the last 20 years during which period, Lisa has taken care of it by fencing the plot and mowing the grass. If this continues, Lisa will be able to claim ownership of land based on adverse possession.
In Real estate law, Adverse possession is a legal principle which allows a non-owner individual to possess a piece of land and gain title with the exclusion of the real owner, after a certain period of time.
However, the non-owner occupant must proof to the court of law meets the following requirements;
1. Continuous.
2. Hostile.
3. Open.
4. Actual.
5. Exclusive.
Two foreign nations decided to impose tariffs on imports from all countries. They set up a free trade area, removing all trade barriers between themselves but maintaining tariffs on imports from the rest of the world. Country A now begins to import sugar from Country B. Prior to this, Country A was producing sugar at a higher cost so it now benefits from this transaction. This is an example of
Answer:
customs union
Explanation:
The arrangements between the two countries is called a customs union. In a customs union agreement, the member countries apply common external trade policies with the rest of the world while ensuring free trade and common tarrif amongst themselves. This is a partial form of economic integration that aims to boost economic progress among countries while also strengthening political and cultural ties among them
When going into a partnership, you should always:_________.
a. put all terms of the partnership into writing in a partnership agreement.
b. make sure that you have limited liability while you are in charge.
c. make sure all the profits are reinvested into the company.
Answer: A. put all terms of the partnership into writing in a partnership agreement.
Explanation:
The most important terms in a partnership agreement is ensuring that all terms are noted down and binded legally, this is to help partners know when need to do something and don't feel cheated or be cheated by someone or something. Avoidance of reaching out to terms noted down will further make things complex either when the business is growing or when there is need to shutdown or during operations.
An applicant is discussing his options for Medicare supplement coverage with his agent. The applicant is 65 years old and has just enrolled in Medicare Part A and Part B. What is the insurance company obligated to do?
A. Exclude pre-existing conditions from coverage under the supplement policies
B. Look at the applicant's medical history to decide what premium to charge
C. Send the applicant to a doctor for a physical. Nothing can happen until they get the results.
D. Offer the supplement policy on a guaranteed issue basis
Answer:
D, Offer the supplement policy on a guaranteed issue basis.
Explanation:
Since the applicant has enrolled in both Medicare part A and B, the insurance has nothing more to do than offer the supplementary policy requested by the applicant.
Medicare is an important enrollment for person that have attained the age of 65. It is is a scheme that helps people of that age and above with their medical bills from there on. It is divided into Parts A and B and it is mandatory at the age of 65 that an individual enrols for medicare Part A irrespective of whether the individual is working or not or has an existing health plan from the employer. Part B on the other hand is important to enhance Part A but could be waived or stopped as decided for reasons best known to the individual.
Cheers
The six member countries that have embraced a common market are disappointed with the outcome of their economic integration. They want something that entails a closer economic integration and cooperation than a common market and decide to pursue a common currency. They are forming a(n)
Answer:
The correct answer is "Economic union ".
Explanation:
An economic union becomes a category of the block of commerce that consists of a shared marketplace including another customs union. The participating countries get both good legislation on drug control, the free flow of goods, services as well as growth factors as well as a similar foreign exchange strategy.So that they forming an Economic union.
You own 1,000 shares of stock in Avondale Corporation. You will receive a dividend of $1.04 per share in one year. In two years, Avondale will pay a liquidating dividend of $37.50 per share. The required return on Avondale stock is 15.8 percent. What will your dividend income be this year if you use homemade dividends to create two equal annual dividend payments? a. $19,270 b. $16,712 c. $18,667 d. $17,935 e. $20,400
Answer:
Dividend = $17,935
Explanation:
We need to calculate the current share price
Current share price = ({Dividend year 1} ÷ {1 + required return}) + ({Dividend year 2} ÷ {1 + required return}^2)
Current share price= ({1.04} ÷ {1 + 0.158}) + ({37.5} ÷ {1 + 0.158}^2)
Current share price= 0.898 + 27.96
Current share price= $28.86
To calculate income for 2 years
Share price is $28.86
Return is 15.8%
Current share price = ({Dividend year 1} ÷ {1 + required return}) + ({Dividend year 2} ÷ {1 + required return}^2)
28.86 = ({Dividend year 1} ÷ {1 + 0.158}) + ({Dividend Year 2} ÷ {1 + 0.158}^2})
28.86 * 1.158 * 1.341 = (Dividend * 1.158) + (Dividend * 1.341)
44.82 = 2.499 * (dividend)
Dividend = $17.935
So for 1,000 shares
Dividend = 1,000 * 17.935 = $17,935
Palmer goes to a truck dealership and asks for a truck capable of handling a 5000-pound load. He makes it clear that it is up to the salesman to select an appropriate truck. Without saying anything about the truck's load-carrying capacity, the salesman selects a certain truck for Palmer. Relying on the salesman's choice, Palmer buys the truck in question. However, the truck can only handle a 2500-pound load. Palmer wants to sue the dealership because he didn't get the truck he desired. Which of the following product liability theories gives Palmer his best chance of recovery?
A. Express warranty
B. Implied warranty of fitness
C. Implied warranty of merchantability
D. Section 402A
Answer:
B. Implied warranty of fitness
Explanation:
An implied warranty of fitness for an specific purpose refers to the fact that if the seller of a product knows that the product will be used for an specific purpose and that the buyer is purchasing that product for that using it that way, then an implied warranty of fitness is formed. In this case, the seller knew that Palmer was going to carry 5,000 pounds in the truck and therefore, by offering a certain truck to Palmer, an implied warranty of fitness was formed stating that the truck could carry that load.
In 2007, Joelle spent $5,000 on her health care. If this amount increased by 6 percent per year, what would be the amount Joelle spent in 2017 for the same health care? Hint: Use Exhibit 1-A. (Round FV factor to 3 decimal places and final answer to the nearest whole dollar.)
Answer: $8954.24
Explanation:
Given the following :
Amount spent by Joelle on Healthcare in 2007 = $5000
Healthcare cost increases by 6% yearly ;
Amount spent on Healthcare in 2017 =?
Number of years between 2007 - 2017 = 10 years
6% yearly increase for 10 years :
The future value (FV) factor = (1 + r) ^n
Where r = rate = 0.06 ; n = period = 10 years
FV factor = (1 + 0.06)^10
FV factor = 1.79084
Therefore, Amount in 2017 equals ;
Amount in 2007 × FV factor
$5000 × 1.79084
= $8954.24
Mr. Barker enjoys a comfortable retirement income. He recently had surgery and expected that he would have certain services and items covered by the plan with minimal out-of-pocket costs because his MA-PD coverage has been very good. However, when he received the bill, he was surprised to see large charges in excess of his maximum out-of-pocket limit that included a number of services and items he thought would be fully covered. He called you to ask what he could do? What could you tell him?
Answer:
What you could tell him is that you can offer to help him review all the plans appeal process as well as to help him ask the plan to review his coverage decision which will enable him to know why he had large charges in excess of his maximum out-of-pocket limit.
Explanation:
Based on the information given we were told that when he received the bill, their was large charges in excess of his maximum out-of-pocket limit which is a limit on the amount of money a person or an individual have to pay for covered medical care services in which we were still told that the large charges in excess of his maximum out-of-pocket limit also include a number of services and items he thought would be fully covered, therefore since he called you to ask what he could do, What you could tell him is that you will offer to help him review all the plans appeal process and to as well help him to ask the plan to review the coverage decision which is why coverage decision is of benefit because it enables a person or an individual to makes decision about their benefits including the amount they have to pay for their medical services plan.
Many store brands use packaging and labeling that is similar to the more expensive national brand. The hope is that the look-alike package will elicit a similar response in consumers that encourages them to purchase the cheaper store brand. This is an example of Group of answer choices
Answer:
Stimulus generalization
Explanation:
Stimulus generalization defines that it is the process of call up for a reason by giving responses. For example we call dog by using the bell so that dog can come for food.
Therefore according to the given situation, Many store brands use similar packaging and labeling to the more expensive big company. The idea is that in customers, the look-alike kit would evoke a similar reaction that allows them to buy the affordable store brand so this is an example of Stimulus generalization
Jenkins Inc., prepared its financial statement for 2008 based on the information given here. The company had cash worth $1,234, inventory worth $13,480, and accounts receivables of $7,789. The company's net fixed assets are $42,331, and other assets are $1,822. It had accounts payables of $9,558, notes payables of $2,756, common stock of $22,000, and retained earnings of $14,008. How much long-term debt does the firm have?
Answer:
$18,334
Explanation:
Given the following :
Cash worth = $1,234
Inventory worth = $13,480
Accounts receivable worth = $7,789
Net fixed asset = $42,331
Other assets = $1,822
Accounts payables = $9,558
Notes payables = $2,756
common stock = $22,000
Retained earnings = $14,008
Long term debt :
Total asset - current liability - stockholders equity
Total asset =current asset + net fixed asset + other asset
Current asset = cash worth + inventory worth + accounts receivables
Current asset = $(1234 + 13480 + 7789) = $22503
Total asset = $(22503 + 42331 + 1822) = $66656
Current liabilities = Accounts payables + notes payables
Current liabilities = $(9558 + 2756) = $12314
Stockholders equity = $(22,000 + 14,008) = $36,008
Long term debt :
Total asset - current liability - stockholders equity
$(66656 - 12314 - 36008) = $18,334
The ________ stage of the new-product process assesses the total "business fit" of the proposed new product with the company's mission and objectives, from whether the product can be economically developed and manufactured to the marketing strategy needed to have it succeed in the marketpla
Answer:
Business analysis
Explanation:
The business analysis refers to the analysis of the business i.e whether the product is profitable or not it contains the attributes that the company want and the consumer wants. It should be done with the help of marketing strategy and research by their taste and preference. Is this product fits with the company mission and objectives or not
So the given situation represents the business analysis stage
Basil, a world-famous chef, signs a contract to give French cooking lessons to Maggie. Basil attempts to delegate his duties under the contract to Oliver, the operator of a hot dog stand. The delegation of duties will a. not be valid because performance of the contract depends on Basil's unique talents and skills as a world-famous chef. b. be valid because any duty can delegated. c. be valid only if Oliver is just as highly respected in cooking as Basil is. d. be valid only if Oliver charges less than Basil for his lessons. e. not be valid because Oliver does not give lessons at a convenient time for Maggie.
Answer:
a. not be valid because performance of the contract depends on Basil's unique talents and skills as a world-famous chef.
Explanation:
Since in the question it is mentioned that there is a contract between the Basil and the Maggie and Basil delegate his duties to Oliver so here the delegation of duties would not be valid as the contract is made between the Basil and Maggie
Therefore in the given case, the contract should not be valid
Hence, the correct option is a.
In Peyton v. Quality Motors, a state supreme court held that a minor could cancel a contract for the sale of a car. Now a trial court in the same state is deciding Rikki v. Street Deals, Inc., a case with similar facts. Under the doctrine of stare decisis, the trial court is likely to
Answer:
The trial court is likely to Allowed the minor to cancel the contract
Explanation:
Doctrine of Stare Decisis which simply means Let the decision stand.
Therefore Doctrine of STARE DECISIS can be seen as a legal doctrine that said that a courts has to follow historical cases when they are making a ruling on a similar case.
In order word they ensures that the cases with similar event and facts are been approached in the same or similar way which means that the courts has to follow any legal precedents set by previous decisions just as in the case of between Peyton v. Quality Motors, where a state supreme court held that a minor could cancel a contract for the sale of a car, this mean that the case between Peyton v. Quality is an Historical cases and Now that a trial court in the same state is deciding Rikki v. Street Deals, Inc., a case with similar facts with Peyton v. Quality this means that the court have to use the case of Peyton v. Quality
Under the doctrine of stare decisis to decide on the case of Rikki v. Street Deals.
A bond currently has a price of $1,050. The yield on the bond is 7%. If the yield increases 23 basis points, the price of the bond will go down to $1,037. The duration of this bond is ____ years.
Answer:
The duration of the bond is 5.8 years
Explanation:
Given that :
Current price of a bond $1,050
Yield on the bond = 7% = 0.07
If the yield increases 23 basis points, the price of the bond will go down to $1,037
The objective is to determine the duration of the bond.
In order to determine the duration of the bond; we need to first find the change in percentage of the price. Afterwards, this is find the modified duration which quantify the change in percentage in the market price for every change in the yield to maturity. Then finally to the determination of the duration of the bond.
Mathematically;
Percentage change in price = [tex]\dfrac{new \ price - old \ price }{old \ price}[/tex]
Percentage change in price =[tex]\dfrac{1037 - 1050 }{1050}[/tex]
Percentage change in price =[tex]\dfrac{-13 }{1050}[/tex]
Percentage change in price = −0.01238
Percentage change in price ≅ - 0.0124
Percentage change in price = - 1.24%
Let recall from the knowledge of our basis points which say;
1 basis point = 1/100
Therefore ; given that if he yield increases 23 basis points, then we have:
23 basis point = 23/100 = 0.23
The modified duration = [tex]\dfrac{percentage \ change \ in \ price }{ change}[/tex]
The modified duration = [tex]\dfrac{1.24 }{0.23}[/tex]
The modified duration = 5.3913 years
Finally, The duration of the bond = Modified duration × (1 + Yield to Maturity)
The duration of the bond = 5.3913 × (1 + 0.07)
The duration of the bond = 5.3913 × 1.07
The duration of the bond = 5.768691 years
The duration of the bond ≅ 5.8 years
Loan X has a principal of $10,000x and a yearly simple interest rate of 4%. Loan Y has a principal of $10,000y and a yearly simple interest rate of 8%. Loans X and Y will be consolidated to form Loan Z with a principal of $(10,000x + 10,000y) and a yearly simple interest rate of r%, where r = (4x+8y)/(x+y). In the table, select a value for x and a value for y corresponding to a yearly simple interest rate of 5% for the consolidated loan. Make only two selections, one in each column.
..........X..........Y..........Value
(A)..............................21
(B)..............................32
(C)..............................51
(D)..............................64
(E)..............................81
(F)..............................96
Answer:
X = 96 and Y = 32
Explanation:
Data provided in the question
X amount = 4%
Y amount = 8%
Now based on this the equation is
r = (4x + 8y) ÷ (x+y)
Now put 5% at the rate place
The x and y is
5 = (4x + 8y) ÷ (x + y)
5x + 5y = 4x + 8y
x = 3y
Now looking the options as we can see that if X = 96 so Y would be 32
Therefore X = 96 and Y = 32
the difference between a secured loan and unsecured loan is that the secured loan is
Answer:
Explanation:
A secured loan is a type of loan on which the borrower uses some assets for collateral . That means it is secured on the assets in the case of any default in terms by the borrower.
An unsecured loan on the other hand is a type of loan that is not secured on any assets . The risks related to this type of loan is higher as there is no security to cover or minimize the loss in the situation of a default in terms.
Looking at the definition given above , the difference between a secured and unsecured loan is that assets are promised by the borrower as security over a secured loan , hence the cost can be lower while in the unsecured loan , no asset is promised as security and the cost can be higher
Answer:
has a lower interest rate
Explanation:
A company uses the weighted-average method for inventory costing. At the end of the period, 19,000 units were in the ending Work in Process inventory and are 100% complete for materials and 68% complete for conversion. The equivalent costs per unit are materials, $2.58, and conversion $2.20. Compute the cost that would be assigned to the ending Work in Process inventory for the period.
Answer: $77,444
Explanation:
Given the following :
Ending work in process inventory = 19,000 units
Complete for materials = 100%
Complete for conversion = 68%
Equivalent cost per unit (material) = $2.58
Equivalent cost per unit (conversion) = $2.20
Cost of ending work in process inventory (materials) :
Cost per unit (material) * (ending work in process inventory) * complete for material
$2.58 * 19000 * 100% = $49,020
Cost of ending work in process inventory (conversion) :
Cost per unit (conversion) * (ending work in process inventory) * complete for conversion
$2.20 * 19000 * 68% = $49,020
$2.20 * 19000 * 0.68 = $28,424
Total cost (ending work in process inventory) :
Material cost + conversion cost
$49,020 + $28,424 = $77444
. The substitution bias in the consumer price index refers to the idea that consumers ________ the quantity of products they buy in response to higher price, and the official CPI does not reflect this and ________ the cost of the market basket.
Answer:
Change; overestimates
Explanation:
The substitution bias in the consumer price index refers to the idea that consumers change the quantity of products they buy in response to higher price, and the official CPI does not reflect this and overestimates the cost of the market basket.
The consumer price index (CPI) is a measure used to analyze and examine the weighted average or aggregate of prices of a basket of goods and services paid for by consumers such as medical, food, and transportation.
In Economics, the substitution bias is a limitation of the consumer price index (CPI) because it doesn't take into consideration the substitution effect of consumer's choice during inflation.
Generally, consumers usually choose to substitute a particular product with another having a cheaper price, when its price rise than the normal price they buy at. The consumer price index will still overestimate the cost of the market basket even when the consumer has substituted the particular product; consumer switching from an expensive product to a relatively alternative.
Carolina, the accountant for Duke Manufacturing, tells her friend, Jacob, who works in customer service for Duke, that she is writing journal entries to transfer costs to products. Carolina is referring to the
Answer:
cost allocation process
Explanation:
Cost allocation process is the process of identifying and allocating cost to products. These products in which the cost are assigned are products in which they want to measure how much was spent to produce the product and the profit incurred form that product. Normally cost allocation process is based on approximations, it can only be done to be as close as possible to the incurred cost
Which identification number is the most important component of your personal identity?
A.
debit card PIN
B.
credit card PIN
C. employee ID of the company
D.
social security number
E.
bank account number
Answer:
D.
social security number
Explanation:
This is because that number allows the government to keep track of your lifetime earnings and years you have worked
5) In a building construction project, 7,500feet of insulated ductwork is required. The ductwork is made from 14-gauge steel costing $8.50 per pound. The 24-inch-diameter duct weighs 15 pounds per foot. Insulation for the ductwork costs $10 per foot. Engineering design will cost $16,000, and labor to install the ductwork will amount to $180,000. What is the total cost of the installed ductwork for this project?
Answer:
$1,227,250
Explanation:
Calculation for the total cost of the installed ductwork for this project
First step is to calculate the costs that have to be estimated based on unit technique for both material and insulation
Material: 7,500ft*15 lb/ft*$8.5/lb=$956,250
Insulation: 7,500ft *$10/ft=$75,000
The next step is to calculate for the Total cost
Engineering design cost $16,000,
Labor $180,000
Material $956,250
Insulation $75,000
Total cost $1,227,250
Therefore the Total cost of the installed ductwork for this project will be $1,227,250
Suppose the price for one gallon of gasoline rises from $3.50 to $4.00 and the price of one gallon of milk rises from $3.00 to $3.20 . If the CPI rises from 120 to 132, then people likely will buy:_________.
a. more gasoline and more milk.
b. more gasoline and fewer milk.
c. less gasoline and more milk.
d. less gasoline and fewer milk.
Answer:
c. less gasoline and more milk.
Explanation:
The increase in price of gasoline = $3.50 to $4
The increase in price of milk = $3 to $3.20
The increase in CPI = 120 to 132
Current price as per CPI of Gasoline should be = (132 /120) * $3.5 = ($3.85)
The price of milk considering the CPI = (132/120) * $3 = 1.1*3 = $3.3
Since the actual price of milk is lower than the price of $3.3. thus more of milk will be demanded. So option c. “less gasoline and more milk” is correct.
