Question

In: Economics

QUESTION 14 Table 24-1 The table below pertains to Pieway, an economy in which the typical...

QUESTION 14

Table 24-1

The table below pertains to Pieway, an economy in which the typical consumer’s basket consists of 10 bushels of peaches and 15 bushels of pecans.

Year

Price of
Peaches

Price of
Pecans

2005

$11 per bushel

$6 per bushel

2006

$9 per bushel

$10 per bushel

Refer to Table 24-1. If 2006 is the base year, then the CPI for 2006 was

a.
100.

b.
83.3.

c.
120.

d.
240.

QUESTION 15

Table 24-1

The table below pertains to Pieway, an economy in which the typical consumer’s basket consists of 10 bushels of peaches and 15 bushels of pecans.

Year

Price of
Peaches

Price of
Pecans

2005

$11 per bushel

$6 per bushel

2006

$9 per bushel

$10 per bushel

Refer to Table 24-1. If 2005 is the base year, then the inflation rate in 2006 was

a.
16.7 percent.

b.
40 percent.

c.
20 percent.

d.
44.1 percent.

QUESTION 16

Table 24-1

The table below pertains to Pieway, an economy in which the typical consumer’s basket consists of 10 bushels of peaches and 15 bushels of pecans.

Year

Price of
Peaches

Price of
Pecans

2005

$11 per bushel

$6 per bushel

2006

$9 per bushel

$10 per bushel

Refer to Table 24-1. If 2006 is the base year, then the inflation rate in 2006 was

a.
44.1 percent.

b.
16.7 percent.

c.
40 percent.

d.
20 percent

QUESTION 18

The substitution bias in the consumer price index refers to the

	a.	substitution by consumers toward a smaller number of high-quality goods and away from a larger number of low-quality goods.
	b.	substitution by consumers toward new goods and away from old goods.
	c.	substitution by consumers toward goods that have become relatively less expensive and away from goods that have become relatively more expensive.
	d.	substitution of new prices for old prices in the CPI basket of goods and services from one year to the next.

Expert Solution

Answer 14 : Option A is correct .

CPI of the base year = (price of the basket in 2006 / price of basket in 2006 )*100 = ( $19/$19)*100 =100

Answer 15 : CPI of 2005 =

CPI of the 2005 year = (price of the basket in 2005 / price of basket in 2005)*100 = ( $17/$17)*100 =100

CPI of the 2006 year = (price of the basket in 2006 / price of basket in 2005 )*100 = ( $19/$17)*100 =111.76

Inflation rate from 2005 to 2006 = ( CPI ₂₀₀₆ - CPI ₂₀₀₅/ CPI ₂₀₀₅)*100 = ( 111.76-100)*100 = 11.76%

Answer 16 :

CPI of the 2005 year = (price of the basket in 2005 / price of basket in 2006)*100 = ( $17/$19)*100 =89.47

CPI of the 2006 year = (price of the basket in 2006 / price of basket in 2006 )*100 = ( $19/$19)*100 =100

Inflation rate from 2005 to 2006 = ( CPI ₂₀₀₆ - CPI ₂₀₀₅/ CPI ₂₀₀₅)*100 = ( 100-89.47)*100 = 11.76%

Answer 18: Option C is correct .The substitution effect is that substitution the goods that have become relatively inexpensive and adopting that goods which are more expensive in substitution bias system.

Rahul Sunny answered 1 month ago

The table below pertains to Pieway, an economy in which the typical consumer’s basket consists of 10 bushels of peaches and 15 bushels of pecans.

Table 24-1The table below pertains to Pieway, an economy in which the typical consumer’s basket consists of 10 bushels of peaches and 15 bushels of pecans.YearPrice ofPeachesPrice ofPecans2005$11 per bushel$6 per bushel2006$9 per bushel$10 per bushel Refer to Table 24-1. The cost of the basket in 2006 was a.$210. b.$240. c.$245. d.$200.Table 24-1The table below pertains to Pieway, an economy in which the typical consumer’s basket consists of 10 bushels of peaches and 15 bushels of pecans.YearPrice ofPeachesPrice ofPecans2005$11 per bushel$6 per bushel2006$9 per bushel$10...

Question 4) Assume an economy that can be described by the following Table 1. Table 1...

Question 4) Assume an economy that can be described by the following Table 1. Table 1 Year Potential GDP Real GDP Price Level 1 $1 020 billion $1 020 billion 100 2 $1 080 billion $1 060 billion 103 Draw a dynamic aggregate demand and aggregate supply diagram to illustrate the state of the economy in Year 1. How can we characterize this position in Year 1? Answer: this position can be characterized Assume in Year 2 that no policy...

Use the information for Economy X in the table to answer the question below. Year CPI...

Use the information for Economy X in the table to answer the question below. Year CPI 2014 280.2 2015 290.4 2016 296.5 2017 292.4 2018 298.3 In which year did Economy X have disinflation? a. 2018 b. 2017 c. 2015 d. 2016 e. None of the choices shown is correct. Did Economy X experience stagflation in 2017? a. Economy X may have experienced stagflation in 2017, but more information is needed to know for sure. b. Economy X did experience...

1. The table below gives selling prices for 24 houses in the fictional SE Portland neighborhood...

1. The table below gives selling prices for 24 houses in the fictional SE Portland neighborhood of Westsellstock in July 2016. (Numbers are in thousands of dollars.) 315 310 314 337 288 292 277 267 336 361 169 339 295 318 271 241 288 241 345 321 340 306 228 314 • Find the mean and standard deviation of the prices of these 24 houses. What conditions and assumptions do you need to check to create a confidence interval for...

TABLE 14-3 An economist is interested to see how consumption for an economy (in $ billions)...

TABLE 14-3 An economist is interested to see how consumption for an economy (in $ billions) is influenced by gross domestic product ($ billions) and aggregate price (consumer price index). The Microsoft Excel output of this regression is partially reproduced below. SUMMARY OUTPUT Regression Statistics Multiple R 0.991 R Square 0.982 Adjusted R Square 0.976 Standard Error 0.299 Observations 10 ANOVA df SS MS F Signif F Regsion 2 33.4163 16.7082 186.325 0.0001 Resdual 7 0.6277 0.0897 Total 9 34.0440 Coeff StdError ...

3.Given is a Decision Tree Diagram. The Payoffs 1-14 are given in the table below. Answer...

3.Given is a Decision Tree Diagram. The Payoffs 1-14 are given in the table below. Answer questions a, b, and c. Payoff 1 2 3 4 5 6 7 8 9 10 11 12 13 14 $ 6 -3 5 5 8 5 5 -1 5 4 5 2 7 5 a) The value at node 4 is b) The value at node 8 is (in 1 decimal place) c) The best course of action or decision is to...

The information given in the below table pertains to Brigham Company for last month. 50,000 units...

The information given in the below table pertains to Brigham Company for last month. 50,000 units are sold for $220 per unit. The fixed expenses are $3,000,000 per month, and the variable expenses per unit include the items given in the below table. Item: Amount Direct Materials $60 per unit Direct Labor $35 per unit Variable Manufacturing Overhead $25 per unit Variable Selling and Administrative Expenses $20 per unit 16. What is the unit contribution margin? $80 per unit $125...

The data in the table below are for the economy of Nubia. a. Complete the AE...

The data in the table below are for the economy of Nubia. a. Complete the AE column. Y T YD C S I G X IM XN AE 0 80 −80 20 −100 40 105 170 60 110 300 95 205 260 −55 40 105 170 75 95 600 110 490 500 −10 40 105 170 90 80 900 125 775 740 35 40 105 170 105 65 1,200 140 1,060 980 80 40 105 170 120 50 b. Write...

The table below shows the prices and quantities of food items that the typical college student...

The table below shows the prices and quantities of food items that the typical college student purchased from 2011 to 2014. What is the amount spent each year on the “basket” of food with the quantities shown in column 2? Items Qty 2011 Price 2011 Amount Spent 2012 Price 2012 Amount Spent 2013 Price 2013 amount Spent 2014 Price 2014 amount spent Bread 10 1.10 1.12 1.15 1.16 Canned Goods 15 0.86 0.87 0.87 0.90 Meat/Dairy 5 3.15 3.75 4.02...

QUESTION 59 Which, if any, of these is an example of an IPSP in a typical...

QUESTION 59 Which, if any, of these is an example of an IPSP in a typical neuron? a. a voltage change from 0 mV to +0.35 mV b. a voltage change from -70 mV to -68 V c. a voltage change from +35 mV to 0 mV d. a voltage change from -70 mV to -72 mV e. None of the above.