The Radio Shack commercial from 1989 showed a cell phone that was sale priced at $799....

The Radio Shack commercial from 1989 showed a cell phone that was sale priced at $799. What type(s) of problems with measuring consumer prices is illustrated by the cell phone example? Explain.

Expert Solution

During 1989, a cell phone costed $799.

If we use the year 1989 as a base year to estimate consumer prices with regard to mobile phones , it will lead to over estimation of consumer prices.

The technology is much improved and advanced today, the amount of production has increased, the price of a cell phone is much lower than $799 today.

If we continue to use the price at year 1989 for measuring real GDP , we will be overestimating the real

consumer price as we produce much larger amount of cell phones currently than before.

Hence, a large price multiplied by a larger quantity will give rise to an even larger consumer price.

Hence over estimation is a problem while using prices of 1989.

Rahul Sunny answered 2 years ago

The number of U.S. cell phone subscribers (in millions) t years after 1989 is approximated by...

The number of U.S. cell phone subscribers (in millions) t years after 1989 is approximated by N(t) = 0.63t2 + 1.02t + 2.7 (0 ≤ t ≤ 20) What does your result tell you about the number of phone subscribers during the period under consideration? What are the relative extremas?

A study showed that 15 of 30 cell phone users with a headset missed their exit,...

A study showed that 15 of 30 cell phone users with a headset missed their exit, compared with 3 of 30 talking to a passenger. Construct a 90 percent confidence interval for the difference in proportions. (Round your answers to 4 decimal places. A negative value should be indicated by a minus sign.) The 90 percent confidence interval is from ___ to ___ .

A survey of 500 non-fatal accidents showed that 201 involved the use of a cell phone....

A survey of 500 non-fatal accidents showed that 201 involved the use of a cell phone. Construct a 99% confidence interval for the proportion of fatal accidents that involved the use of a cell phone.

A survey of 400 non-fatal accidents showed that 181 involved the use of a cell phone....

A survey of 400 non-fatal accidents showed that 181 involved the use of a cell phone. Construct a 99% confidence interval for the proportion of fatal accidents that involved the use of a cell phone.

One recent survey of cell phone usage around the world showed that only 4 percent of...

One recent survey of cell phone usage around the world showed that only 4 percent of people in countries like Uganda and Ethiopia have access to a smartphone. Explain how this presents an opportunity for these countries to attain faster growth. What are the likely costs of economic growth? Suppose that you are currently getting your undergraduate degree and are considering going on for a graduate degree. You expect that once you have your graduate degree, your income and your...

Q3. Commercial radio stations are private firms that produce and broadcast programs without assistance from the...

Q3. Commercial radio stations are private firms that produce and broadcast programs without assistance from the government. a) What type of good is a radio program? Explain your answers with reference to the categories: public good, private good, club good and common resources. b) Explain why commercial radio stations may not produce programs that maximise welfare. c) Explain how adding a government-funded radio station to the market can increase welfare. d) Suppose that the government requires the government-funded radio station...

4. A) The probability that a student from a certain university has a cell phone is...

4. A) The probability that a student from a certain university has a cell phone is 0.2. So, the probability that the tenth student randomly interviewed at this university is the fifth with Cell phones is: B) On a certain day, the second stage of the environmental contingency plan was implemented in the Mexico City. If there are 50 companies in the area that corresponds to a supervisor, of which 15 did not follow contingency guidelines, then the probability that...

A problem with a cell phone that prevents a customer from receiving calls is upsetting both...

A problem with a cell phone that prevents a customer from receiving calls is upsetting both customers and the telecommunications company. The file Phone contains samples of 20 problems reported to two different offices of the telecommunication company and the time to clear these problems (in minutes) from the customers’ phones. Is there evidence that addressing this phone issue results in different mean waiting times at the two offices? (Use a 0.05 level of significance) I WANT THE ANSWER IN...

Handi Inc., a cell phone manufacturer, procures a standard display from LCD Inc. via an options...

Handi Inc., a cell phone manufacturer, procures a standard display from LCD Inc. via an options contract. At the start of quarter 1 (Q1), Handi pays LCD $4.00 per option. At that time, Handi’s forecast of demand in Q2 is normally distributed with a mean of 30,000 and a standard deviation of 9,000. At the start of Q2, Handi learns exact demand for Q2 and then exercises options at the fee of $2.70 per option, (for every exercised option, LCD...

We are a new Cell Phone Service Company from Argentina. We have done well there, because...

We are a new Cell Phone Service Company from Argentina. We have done well there, because we help out locally and charitably. We are going to expand worldwide. We will be able to offer free cell phones to everyone who buys our service. Our Cell Service will be 50% cheaper than all of the top brands like Verizon and AT&T. We cannot get a contract with Apple so we will not be able to offer the Iphone. Create a SWOT...

Question