One of the reasons that a rise in the price of a fixed basket of goods over time tends to overstate the rise in a consumer's true cost of living, is: substitution bias attribution bias complimentary bias preference bias

Answers

Answer 1

The effect that occur when there is rise in price of fixed basket of goods, which actually brings about the rise in a consumer's true cost of living is substitution bias .

Substitution bias can be regarded as effect that do occur when there is change in price of goods are relative to each other.

In this case, the consumer usually leave the high priced goods for cheaper ones because of change in price.

Therefore, option A is correct.

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Related Questions

three brothers operating a business where the action of one brother is binding on the other two brothers
what type of business organization is this?

Answers

Considering the situation above, the type of business organization is "General Partnership."

This is because General Partnership, like other types of partnership in the business organization, usually involves a minimum of two people and a maximum of fifty people.

In the general partnership arrangement, all partners have independent authority to bind the business to agreements and loans and are equally liable to debts and legal obligations.

Given that the action of one brother is binding on the other two brothers, this is a form of General Partnership.

Other types of the partnership include the following:

Limited partnershipLimited liability partnershipLimited liability limited partnership.

Hence, in this case, it is concluded that the correct answer is General Partnership.

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Frusciante, Inc. , has 290,000 bonds outstanding. The bonds have a par value of $1,000, a coupon rate of 7 percent paid semiannually, and 8 years to maturity. The current YTM on the bonds is 7. 5 percent. The company also has 10 million shares of stock outstanding, with a market price of $23 per share. What is the company’s market value debtâ€"equity ratio?.

Answers

Frusciante, Inc.'s market value debt-equity ratio is 1.35.

Data and Calculations:

Outstanding bonds = 290,000

Bonds par value = $1,000

Outstanding bonds value = $290,000,000 (290,000 x$1,000)

Coupon interest rate = 7%

Maturity period = 8 years

Current YTM = 7.5%

Market price per bond = $1,071 ($1,000 x 7.5%/7%)

Market price of bonds = $310,590,000 ($1,071 x 290,000)

Outstanding common stock = 10 million shares

Market price per share = $23

Market value of common stock = $230 million ($23 x 10,000,000)

Market value debt-equity ratio = 1.35 ($310,590,000/$230,000,000)

Thus, Frusciante, Inc.'s market value debt-equity ratio is 1.35.

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What is it called when one power controlled the trade exports?

Answers

Explanation:

This is called colonization. It is not in order when one power controls the trade exports of another, Every individual and every given state has got power to transact its businesses at any time without being forced or discriminated by any of the systems in power.

primary costs to the company, such as payments to artists and staff who maintain the threadless website, come out of which budget?

Answers

The operating budget make provision for primary costs such as payments to artists and staff who maintain the website,

The operating budget refers a detailed projection of expenses, expected future costs, and fore-casted income over a period of time

This budget helps to make plans for the income and expense departments expected in the business,

In conclusion, the operating budget is the budget that make the provision described in the question.

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True or false: The key to success for companies in a capitalist economy is to remain inflexible during times of change.

Answers

It is false that the key to success for companies in a capitalist economy is to remain inflexible during times of change.

This is because times of change often involve changes in technology or customers' tastes. Any company that refuses to yield to change in technology or consumer taste risks the chance of remaining stagnant in the market.

Not only that, when a company remains inflexible during times of change, such a company tends to lose many customers.

For example, the failure of Nokia to use android early in its mobile phone product due to technological change cost them losing many customers.

Hence, in this case, it is concluded that the correct answer is False.

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Location choice I has monthly fixed costs of $100,000 and per-unit variable costs of $10. What would its total cost be at a monthly volume of 250 units

Answers

Answer:

$250.000

hope full this answer

FIRST ANSWER GETS BRAINLIEST!!!!!!!

Bob has decided to start Investing. After dong his research, he has decided he wants to Invest in a safe Invest with guaranteed return. He Is going to buy

Shares

Mutual funds

Bonds

Answers

I would say bond. Bob would most likely going to buy bonds. Bonds are known to be very safe however it has low return.

Answer:

bonds

Explanation:

Eva currently owes $21,000 on a student loan and two credit cards. The total
amount owed is considered
O A. debt
B. credit
C. interest
D. collateral

Answers

A. debt.
Hope it helps!

Answer: a dept

Explanation:

what is bankaccount​

Answers

Answer:

Kung san mo Tatago pera mo

Explanation:

commonsense

the new slide command on the ribbon lets you choose ________.

Answers

The New Slide command on the Ribbon lets you choose slide layouts.

Microsoft PowerPoint is a presentation program. Microsoft PowerPoint is used to create visual presentations of information using slides.

The menu Ribbon is used to accomplish several tasks in PowerPoint. It can be used to create a new slide, insert a picture or change the orientation of slides.

The New Slide command on the Ribbon lets you choose slide layouts.

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What is a major factor in the decline of some occupations, such as those in the textiles and clothing industries? shifting consumer tastes overseas labor costs changing technologies aging populations.

Answers

Answer:c

Explanation:

A major factor in the decline of some occupations, such as those in the textiles and clothing industries is changing technologies. Thus option (C) is correct.

What is technology?

Technology refers to the tools, systems, and processes that are designed and used to solve problems, improve efficiency, and facilitate communication and collaboration. It encompasses a wide range of fields and applications, from simple hand tools to advanced computer systems and software.

Technology  has enabled advances in fields such as medicine, transportation, and energy, and has revolutionized industries such as entertainment, manufacturing, and finance.

The changing technologies is a major factor in the decline of some occupations, such as those in the textiles and clothing industries. Therefore, option (C) is correct.

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Something that serves as a model for others to copy is a

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Something that serves as a model for others to copy is an example (i assume and hope) maybe prototype ?

The sales interns of Nortrom Inc., an electronics company, call the company's potential clients and inform them about the company's various products and offers. In this scenario, the sales interns of Nortrom Inc. are engaged in _____.

Answers

Answer:

whys it taking so long to load bro

Explanation:

Nick invested $2,000 in a bank savings account today and another $2000 a year from now. If the bank pays interest of 10 percent per year, how much money will Nick have at the end of two years

Answers

Answer:

$4,620

Future value of two cash flows = [PV × (1 + i)2]+ [PV × (1 + i)] = [$2,000 × (1 + 0.10)2] + [$2,000 × (1 + 0.10)] = [$2,000 × (1.10)2] + [$2,000 × (1.10)] = [$2,000 × 1.21]+ [$2,000 × 1.10] = $2,420 + $2,200 = $4,620

Explanation:

most of the money used in political campaigns comes from

Answers

Answer:

Federal contribution limits.

Bundling.

Advocacy groups/interest groups.

"Hard" and "soft" money.

Political action committees.

501(c) organizations.

527 organizations.

Political parties.

Explanation:

they can come from any of them

Identify the statements that describe life before the nationalization of the American market during the market revolution. Correct Answer(s) Drag appropriate answer(s) here Americans lived only to the east of the Appalachian Mountains; the mountains provided a natural border between Anglo-Americans and native peoples. Press Space to open Cash was not widely distributed throughout the country and was utilized mainly in coastal cities. Many Americans bartered for what they needed. Press Space to open Most Americans lived isolated lives not much different from the lives of their colonial forebears. Press Space to open Many Americans were tasked with sustaining their own lives since consumer goods and services were not readily available to them. Press Space to open Most Americans lived nomadic lives, traveling from town-to-town in search of work

Answers

Considering the options available, the statements that describe life before the nationalization of the American market during the market revolution include "Many Americans bartered for what they needed."

Other statements that describe life before the nationalization of the American market during the market revolution are the following:

Many Americans were tasked with sustaining their own lives since consumer goods and services were not readily available.

Cash was not widely distributed throughout the country and was utilized mainly in coastal cities.

Most Americans lived isolated lives not much different from the lives of their colonial forebears.

Hence, in this case, it is concluded that the correct answer is Options B, C, D, and E.

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what is the best way to start a business

Answers

Explanation:

THE BEST WAY TO START BUSINESS IS TO FIRST COLLECT RESOURCES WHICH U WANT IN BUSINESS

AND THEN USE UR CAPITAL AND INVEST IN IT

AND IM SURE U WILL GET BEST RESULT

Goods that are excludable include both A. club goods and public goods. B. public goods and common resources. C. common resources and private goods. D. private goods and club goods.

Answers

The goods that are excludable are private goods and club goods. The correct answer to this question is option D.

The club goods are those goods that can be artificially scarce. These goods are non rival in nature but the excludability is quite high.

Private goods on the other hands are those goods that have their usage and consumption restricted to only one person or group.

Such goods can only be used by one party.

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New household appliances, automobiles, and __________ were goods popular among consumers of the 1920s. A. airplanes B. sailboats C. televisions D. radios

Answers

Answer:

I believe the answer is C and if the answer is wrong then my second best choice is D but im sure its C let me know!

Explanation:

Answer:

radios because people would need it 2 listen 2 music and other things

Explanation:

I Will give brain if u give one to me

Answers

Okayyyyy that’s fine w me

An increase in accounts receivable will result in a(n) ______ in cash from sales revenue when using the direct method to determine cash flows from operations.

Answers

When using the direct method for cash flows, one will notice that an increase in accounts receivable would result in a DECREASE in cash.

When an accounts receivable increases:

It means that more debt has been incurred by debtors It means that less money entered into the company as people took goods but did not pay cash for them

Because the people did not pay cash for the goods yet took the goods, the company will see a reduction in its cash balance as the cash value of the goods left the company and there was no cash inflow from that activity.

In conclusion, an increase in accounts receivable leads to a decrease in cash.

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net cash flows provided by operating activities will be ______ when using the direct method compared to the indirect method.

Answers

According to cash flow operation analysis, the net cash flows provided by operating activities will be the same when using the direct method compared to the indirect method.

Net Cash flows are used in business management to describe the profit or loss of capital in a given period.

Typically, a positive Net Cash Flows occurs when the is a surplus of cash after paying the expenses.

Hence, in this case, it is concluded that the correct answer is "the same."

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Cash flows from operating activities often shows the net amount of cash that was received or disbursed during a given period of time. Net cash flows provided by operating activities will be the same as when using the direct method compared to the indirect method.

The direct method is often use in  calculating the flow that involves deducting from cash sales.

Cash flow statements is simply defined as the statement that shows the cash receipts, cash payments and net changes in cash that takes place as a result of operating, investing, and financing activities in an accounting period.

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Incumbent firms prefer to focus on incremental innovations which reinforce their established organizational structure and power distribution and avoid radical innovation that could disrupt their existing power distribution. This is known as

Answers

Organizational inertia is simply known to be the ability or strength of an organization to create internal changes in the midst of an important external changes. This is known as Organizational inertia

An organization inertia often increase or takes place step by step in the organization's actions. The organization therefore suddenly reacts based on past experiences and strongly resists against changing.

It is the ability of a mature organization to still stand on its main trajectory. This inertia is made up of two elements. They are resource rigidity and routine rigidity

Incumbent firms favor incremental innovation over radical innovation because radical innovation often obstruct or disturb the existing power distribution that takes place in the firms.

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A developer buys a large tract of land and plans to develop several single family homes. To proceed, ______________ is needed.

Answers

Economic feasibility

A cell phone manufacturer uses a famous pop singer to advertise its product to teenagers. The company is relying on _____ route persuasion.

Answers

Answer:
Is Peripheral

which act governors partnership firm??​

Answers

Answer:

Partnership firms in India are governed and regulated by the Indian Partnership Act, 1932. Partners are the individuals that join together to form a partnership firm. A contract between the partners establishes the partnership firm.

Explanation:

When a product has gained a certain level of brand awareness, firms use _____ advertising to motivate consumers to take action.

Answers

When a product has gained a certain level of brand awareness, firms use persuasive advertising to motivate consumers to take action.

Persuasive advertising is the advertising modality dedicated mainly to convincing the public for a certain product or service by specifically appealing to their sensory, subjective or emotional factors.

It is the strategy in which the characteristics of a product or service are taken into account, conspicuously highlighted and used to achieve more sales.

Persuasive advertising aims to convince the consumers to make the desired decision.

Therefore, we can conclude that persuasive advertising is a strategy that focuses on showing the most attractive benefits and characteristics to the consumer and uses them to get more sales of the product.

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Statistics derived from national income accounting
A. form the basis for business accounting systems.
B. are useful to assess the health of an economy and formulate policies to maintain and improve that health.
C. are valuable for assessing economic health at a point in time but are less useful for comparisons over time.
D. change frequently and therefore are limited in their usefulness.

Answers

Answer:

B -  are useful to assess the health of an economy and formulate policies to maintain and improve that health.

Explanation:

easy

A mountain bike is priced at $413. If the sales tax is 6. 5 percent, what is the cost to purchase the mountain bike? Round to the nearest cent if necessary. $26. 85 $28. 91 $437. 78 $439. 85.

Answers

Answer:

A

Explanation:

A. the answer to this question

Which of the following is not a step that can help you establish and maintain a good credit history?

a. Open a bank account.

b. Purchase a cell phone contract and pay it on time and in full every month.

c. Make car payments and car insurance on time.

d. Open many credit card accounts.

e. All of the above steps help establish good credit history.​

Answers

Answer:

b. Purchase a cell phone contract and pay it on time and in full every month.

Explanation:

have a wonderful day!! :)

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