Calculate the inflation rate based on a fixed basket of good

Assignment Help Business Management

Reference no: EM133304776

Learning Assessment

Answer the following questions:

- How do economists use a basket of goods and services to measure the price level?
- Why does "substitution bias" arise if we calculate the inflation rate based on a fixed basket of goods?
- Why does the "quality/new goods bias" arise if we calculate the inflation rate based on a fixed basket of goods?

B. Explain briefly whether each of the following would be more likely to lead to a higher level of trade for an economy, or a greater imbalance of trade for an economy.
- Living in an especially large country
- Having a domestic investment rate much higher than the domestic savings rate
- Having many other large economies geographically nearby
- Having an especially large budget deficit
- Having countries with a tradition of strong protectionist legislation shutting out imports

C. In 2001, the United Kingdom's economy exported goods worth £192 billion and services worth another £77 billion. It imported goods worth £225 billion and services worth £66 billion. Receipts of income from abroad were £140 billion while income payments going abroad were £131 billion. Government transfers from the United Kingdom to the rest of the world were £23 billion, while various U.K government agencies received payments of £16 billion from the rest of the world.

Reference no: EM133304776

Questions Cloud

How to apply quality improvement techniques : The organization may not have the knowledge of how to apply quality improvement techniques.identify potential issues, or prove a process is working.

Describe how sanitation hazards can be identified : Define and describe how sanitation hazards can be identified using the three step HACCP hazard analysis framework. Describe how you could apply HACCP principles

Using and citing the relevant section of the hipaa manual : Using and citing the relevant section(s) of the HIPAA Manual, explain whether or not the authorization is legally valid and how you came to your conclusion.

Describe the obligations that the directors have procedure : Describe the obligations that the directors have, and the procedures that must be followed under the Corporations Act

Calculate the inflation rate based on a fixed basket of good : How do economists use a basket of goods and services to measure the price level and Why does "substitution bias" arise if we calculate the inflation rate based

Examine relationship between physicians and cdi specialists : Examine and discuss the interprofessional relationship between physicians and CDI specialists and analyze how that relationship can improve patient outcomes.

How ethmoidectomy procedure coded : A patient presents for a diagnostic nasal sinus endoscopy. During the course of the procedure, the physician performs a sinusotomy and total ethmoidectomy.

How does the charter protect our legal rights : What has the Supreme Court of Canada told us about a reasonable amount of time to have a trial and How does the Charter protect our legal rights

Tell possible negative side effects to treatments : Treatment modalities (nutritional, pharmaceutical, surgical, etc.) that may improve quality of life.Possible negative side effects to treatments.

User Account

All Pages