Question

Clearly indicate in your answers whether the following statements are TRUE or FALSE and then provide...

Clearly indicate in your answers whether the following statements are TRUE or FALSE and then provide an appropriate explanation to justify your answer (approximately100 words):

1: Suppose the residents of Bernai Island spend all their income on bananas, mangos and pineapples. In 2018, they buy 60 Pineapples for $100, 54 mangos for $120 and 510 bananas for $90. In 2019 they buy 55 pineapples for $200, 65 mangos for $150 and 510 bananas for $150. If the base year is assumed to be 2018, then the inflation rate in 2019 is 53.8%.

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1
2018 2019
P1 Q TE P2 P2*Q
Bananas 0.18 510 90 0.29 150.0 510 150
Mango 2.22 54 120 2.31 124.6 65 150
Pineapple 1.67 60 100 3.64 218.2 55 200
Total Expenditure 310 492.8 500
CPI 100 158.97
Inflation Rate 58.97

The CPI for 2019 is 158.97 and the inflation rate = (CPI2019/CPI2018-1)*100 = 58.97 Percent (the given value is not correct)

The price for the year 2019 is calculated as per-unit cost of buying the fruits. P2 = TE2019/Q2019. To arrive at the inflation rate we took the same quantity in both years.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
For each of the following statements clearly indicate whether the statement is true or false. Provide...
For each of the following statements clearly indicate whether the statement is true or false. Provide a brief explanation to justify your answer. Your answer must begin with "True" or "False" followed by your explanation. Note that your explanation cannot just be a restatement of the question statement. a) A security with a beta of 0.8 can have a standard deviation of return that is greater than the market portfolio’s standard deviation of return. (Begin your answer with "True" or...
For each of the following statements, please indicate if it is TRUE or FALSE. Then provide...
For each of the following statements, please indicate if it is TRUE or FALSE. Then provide a justification or explanation of your answer to each question in less than 30 words The equation, Y = C+I+G+NX, implies that increasing government purchases of goods and services (G) and increasing net exports (NX) are two clear long-term strategy for raising national income (Y). The equation, Y = AK0.5L0.5, implies that in a competitive economy, the national income (Y) gets equally divided between...
Indicate whether each of the following statements is True or False, and Briefly Justify your answer....
Indicate whether each of the following statements is True or False, and Briefly Justify your answer. The adjusted R2 is used because the unadjusted R2 automatically and spuriously increases when extra explanatory variables are added to the model.
Indicate whether the following statements are true, false, or ambiguous. Justify your answers. 1. The price...
Indicate whether the following statements are true, false, or ambiguous. Justify your answers. 1. The price of food rises by 10 % and disposable income rises by 5 %. Someone initially spending half of his or her income on food would be neither better nor worse off as a result of these changes. 2. A person buys 2 kilograms of steak per week. The price of steak rises by $0.50 per kilogram. The compensating variation measure of the impact of...
Placerville is a small country that produces only 4 products: shoes, hamburgers, and shirts.   2012 (Base...
Placerville is a small country that produces only 4 products: shoes, hamburgers, and shirts.   2012 (Base Year) 2018 2019 Product Quantity (Units) Price Per Unit Quantity (Units) Price Per Unit Quantity (Units) Price Per Unit Shoes 90 $50.00 100 $60.00 100 $65.00 Hamburgers 75 2.00 100 2.00 120 2.25 Shirts 50 30.00 50 25.00 65 25.00 Use the information in the table above to calculate nominal GDP in 2012, 2018 and 2019. Use the information in the table above to...
: State whether the following statements are TRUE, FALSE or UNCERTAIN; and justify your answers: Matt...
: State whether the following statements are TRUE, FALSE or UNCERTAIN; and justify your answers: Matt lives on popcorn and seafood salads. The price of popcorn is 1 dollar per bag and the price of seafood salads is 2 dollars each. Matt allows himself to spend no more than 13 dollars a day on food. He also restricts his consumption to 5,500 calories per day. There are 1,000 calories in a bag of popcorn and 500 calories in a seafood...
CASE: Sharesies: NZ investment platform Everyday investment company Sharesies was launched in February 2017, after conducting...
CASE: Sharesies: NZ investment platform Everyday investment company Sharesies was launched in February 2017, after conducting research on New Zealanders’ attitudes towards investing. Prior to launching the company, the co-founders interviewed over 200 people asking them “If I gave you $50 right now, and you had to do something with it in the next 5 minutes what would you do?” Only 5 out of 200 people chose an option to save or invest the $50. More popular options were bills,...
Your firm works in construction and buys ASTM A325M8S bolts in very large numbers. You are...
Your firm works in construction and buys ASTM A325M8S bolts in very large numbers. You are interested in purchasing bolts from different suppliers and have obtained and tested samples of 200 bolts from three suppliers: Allnutt, Boltzman, Coachers.You have tested these in your new bolt testing machine, purchased after you had discovered your old bolt testing machine was performing erratically. (For the purposes of this question, you are safe to assume that the new machine works perfectly and that its...
Delta airlines case study Global strategy. Describe the current global strategy and provide evidence about how...
Delta airlines case study Global strategy. Describe the current global strategy and provide evidence about how the firms resources incompetencies support the given pressures regarding costs and local responsiveness. Describe entry modes have they usually used, and whether they are appropriate for the given strategy. Any key issues in their global strategy? casestudy: Atlanta, June 17, 2014. Sea of Delta employees and their families swarmed between food trucks, amusement park booths, and entertainment venues that were scattered throughout what would...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT