What does the consumer price index measure? B. the change in prices of specific goods and services over time. The consumer price index is also know as the CPI when reffering to this calculation. The CPI measures the weighted items of specific consumer goods and services by averaging them overtime. The CPI allows for comparison of the same products that consumers use on a daily basis and see how much they are using each year. This lets us know how the economy is doing as it relates to inflation. Inflation is the increase in prices and decline of the purchasing value of money in an economy.
Answer:
d. Business entity assumption.
Explanation:
Business entity assumption -
It is an accounting principle ,
According to this principle , the financial statements or any financial records ,should be kept far apart from the personal financial records , is referred to as business entity assumption .
As all the money required for business need to be recorded separately .
Hence, from the given scenario of the question ,
The correct option is d. Business entity assumption .
Complete question:
Consider the game of chicken. Two players drive their cars down the center of the road directly at each other. Each player chooses SWERVE or STAY. Staying wins you the admiration of your peers (a big payoff) only if the other player swerves. Swerving loses face if the other player stays. However, clearly, the worst output is for both players to stay! Specifically, consider the following payouts. Player two Stay swervePlayer one stay -6 -6 2 -2 swerve -2 2 1 1
a) Does either player have a dominant strategy?
b) Suppose that Player B has adopted the strategy of Staying 1/5 of the time and swerving 4/5 of the time. Show that Player A is indifferent between swerving
and staying.
c) If both player A and Player B use this probability mix, what is the chance that they crash?
Explanation:
a. There is no dominant strategy for either player. Suppose two players agree to live. Then the best answer for the player is to swerve(-6 versus -2). Yet if the player turns two, the player will remain one (2 vs 1).
b. Player B must be shown to be indifferent among swerving and staying if it implements a policy (stay= 1⁄4, swerving= 5/4).
When we quantify a predicted award on the stay / swerving of Player A, we get
E(stay)= (1/5)(-6)+ (4/5)(2)= 2/5 E(swerve)= (1/5)(-2)
c. They both remain 1/5 of the time. The risk of a crash (rest, stay) is therefore (1/5)(1/5)= 1/25= 4%
I believe the answer is B
Answer: positive cross elasticity of demand.
Explanation: In simple words, cross elasticity refers to the degree of change in the demand of a good with respect to change in the price of another goods.
In case of substitute goods, one good can easily be used in the place of another good. Thus, if the price of one good increases the demand for its substitute good also increases.
Hence from the above we can conclude that substitute goods have positive cross elasticity.
