1 answer

PLEASE ANSWER BOTH PARTS OF THE QUESTION. I know answer to first part is $66, what...

Question:

PLEASE ANSWER BOTH PARTS OF THE QUESTION. I know answer to first part is $66, what about second part??

Refer to table 1. Consider a basket of goods that includes 10 apples, 5 bananas, 3 kiwis, and 1 pineapple. At the prices given in the table, what is the nominal cost of the basket of goods in 2004? Table 1 ear apple baaa kiwi pineapple 2003 $4 $2 $5 $6 2004 $3 $2 $6 $8 Select one: O a. $80 o b. $66 O c. $73 O d. $40 Refer to table 1 again. Consider the same basket of goods (10 apples, 5 bananas, 3 kiwis, and 1 pineapple). At the prices given in the table, what is the rate of inflation between 2003 and 2004 (Use 2003 as the base year)? Table 1 apple banana kiwilpineapple 2003 $4 $2 $5 $6 2004 $3 $2 $6 $8 Select one: O a. 7% О с. 3% O d.-2%

Refer to table 1. Consider a basket of goods that includes 10 apples, 5 bananas, 3 kiwis, and 1 pineapple. At the prices given in the table, what is the nominal cost of the basket of goods in 2004? Table 1 ear apple baaa kiwi pineapple 2003 $4 $2 $5 $6 2004 $3 $2 $6 $8 Select one: O a. $80 o b. $66 O c. $73 O d. $40 Refer to table 1 again. Consider the same basket of goods (10 apples, 5 bananas, 3 kiwis, and 1 pineapple). At the prices given in the table, what is the rate of inflation between 2003 and 2004 (Use 2003 as the base year)? Table 1 apple banana kiwil"pineapple 2003 $4 $2 $5 $6 2004 $3 $2 $6 $8 Select one: O a. 7% О с. 3% O d.-2%

Answers

Answer 1 : Option B is correct.

CPI 2004 = ( price of apple * Goods+ price of banana* Goods+ price of kiwi * Goods + price of pineapple* Goods)

CPI 2004 =( $3*10+ $2* 5+$6*3+ $8*1)= $30+$10+$18+$8= $66

Answer2 : Option B is correct.

CPI 2004 =$ 66

CPI 2003 = ( price of apple* Goods + price of banana* Goods + price of kiwi * Goods + price of pineapple * Goods)

CPI 2003 = ( $4* 10+ $2* 5+ $5*3+ $6*1)= ($40+$10+$15+$6)= $71

Inflation rate= (CPI 2004 -CPI 2003)/CPI 2003 = ( 66-71)/71= -7%

.

Similar Solved Questions

1 answer
Submit a paper which compares and contrasts two mental health theories: compare humanistic theory and psychoanalytic...
Submit a paper which compares and contrasts two mental health theories: compare humanistic theory and psychoanalytic theory Describe each theory, including some history about the person who developed the theory and the major ideas and applications of the theory. Describe the ways in which the two...
1 answer
5. 1 points SorEssen1 11.P.019. My Notes Ask Your Teacher A 116g cube of ice at...
5. 1 points SorEssen1 11.P.019. My Notes Ask Your Teacher A 116g cube of ice at 0°C is dropped into 1.0 kg of water that was originally at 90°C. What is the final temperature of the water after the ice has melted? oc...
1 answer
K's tax liability was $15,000 in 20X6, $20,000 in 20X7 and $25,000 in 20X8. What is...
K's tax liability was $15,000 in 20X6, $20,000 in 20X7 and $25,000 in 20X8. What is the minimum total amount of the tax instalments required for 20X9?...
1 answer
A client has just been diagnosed with glaucoma and will be taking two different eye drops...
A client has just been diagnosed with glaucoma and will be taking two different eye drops in the same eye as directed. What should the nurse teach the client and family?...
1 answer
Spring problem
In the figure below, we must apply a force of magnitude 76 N to hold the block stationary at x = -2.0 cm. From that position we then slowly move the block so thatour force does +3.0 J of work on the spring-block system; the block is then again stationary. What is the block's position (x)? (There...
1 answer
Find the number of words which can be formed by using the letters of the word EQUATION
Find the number of words which can be formed by using the letters of the word EQUATION...
1 answer
What is the shift toward a more integrated and interdependent world economy called? O International trade...
What is the shift toward a more integrated and interdependent world economy called? O International trade Foreign direct investment O Globalization O Moore's Law O Containerization...
1 answer
Splitting patterns lastly let’s discuss Splitting Patterns Lastly, let's discuss why some signals are comprised of...
splitting patterns lastly let’s discuss Splitting Patterns Lastly, let's discuss why some signals are comprised of only a single peak, called a singlet, while other signals exhibit splitting, and may appear as a doublet, triplet, quartet, quintet, sextet, septet, octet, nonet, etc. Spl...
1 answer
If you were a member of the drug development committee at a pharmaceutical sponsor, how would...
If you were a member of the drug development committee at a pharmaceutical sponsor, how would you draft a package insert indication for a new lipid lowering drug that is proven more potent than atorvastatin. The new drug is called lowerstatin. Please check my assignment below and make corrections or...
1 answer
(10 pts)  I buy one CALL option on AMD with a strike price of $20.50.The option premium...
(10 pts)  I buy one CALL option on AMD with a strike price of $20.50.The option premium is $100. Suppose the price of AMD is $35.00 a share and I choose to exercise the option. What are my total gains or losses? (10 pts) Using the information in question 6, what would my profit or loss b...
1 answer
The output approach to calculating GDP The following chart provides production data for selected cars. All...
The output approach to calculating GDP The following chart provides production data for selected cars. All prices are quoted in U.S. dollars. ------------------Ferrari F1------Ford Focus--------Honda CRV ------------Origin / Price-----Origin / Price---------Origin / Price Engine-----Italy / 60,000-...
1 answer
What is the difference between a Cournot and Bertrand competition?
What is the difference between a Cournot and Bertrand competition?...
1 answer
What is 12 divided 1/4?
What is 12 divided 1/4?...
1 answer
Which option below represents the best way to paraphrase and cite the source of the information...
[REMOVED] Which option below represents the best way to paraphrase and cite the source of the information from the first two sentences in the paragraph on norovirus infections above? Group of answer choices Within the United States, the norovirus is responsible for 58% of reported food related illn...
1 answer
(10 points) This problem is related to Problem 9.11 in the text. Given the signal s(t)...
(10 points) This problem is related to Problem 9.11 in the text. Given the signal s(t) = 4.5cos(2x81 +0.523599) + 5.5cos(2281 + 2.0944) find the Fourier series coefficients of the exponential representation. Find the fundamental frequency Wo= radians Give the indices and the values (polar representa...
1 answer
Please indicate the correct answer and explain why. Graph as instructed with labels. Thank you1!! Rice...
Please indicate the correct answer and explain why. Graph as instructed with labels. Thank you1!! Rice exporters cye cartel to boost prices Price and cost (dollars per pound of rice) Southeast Asia's rice-exporting nations are in talks to create a formal alliance aimed at boosting prices and in...