Business, 29.02.2020 00:51 nikki4367

For some racquet sports, there have been increases in the size of the racquets; also, the methods and materials used for making racquets have improved. To which problem in the construction of the CPI is this situation most relevant?

a. substitution bias
b. introduction of new goods
c. unmeasured quality change
d. income bias

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Answer from: ayeeeee98

The correct answer is C

Explanation:

The CPI stands or termed as Consumer Price Index, which is defined as the measure which evaluate the weighted average of the prices of the basket of the customer goods and services.

Unmeasured quality change is defined as if the quality of the good increases from year to year, then the dollar value is increasing even though the actual prices are constant.

So, the sports is involved in increasing the size as well as materials used in making the racquet is improving. Therefore, the problem which is relevant is that unmeasured quality change.

Answer from: Quest

answer: i'd say the answer is d because the information system is the human already doing the activity.

Answer from: Quest

of the three mortgage options that demarco and tanya have to choose from, the balloon payment mortgage would be their best option, over adjustable payment and fixed payment plans.ultimately, the balloon payment plan would save demarco and tanya overall, in interest, would cost less monthly, and they would only have to make these payments for 8 years, opposing to 30 years for adjustable or fixed payment plans.

overall, demarco and tanya would save $80,811 if they chose balloon payments over fixed payments, and would save $116,711 if they choose balloon payments over adjustable payments. benefits with choosing fixed payments over adjustable payments is that, in the end, the payments will still be $836.30 a month, while with adjustable payments, the initial monthly payments will be $763.38 to $1082.70 a month, ultimately leading to a more costly purchase. benefits with choosing fixed payments over balloon payments are not present. benefits in choosing adjustable payments over is that it has a lower interest rate, and starts with lower monthly payments initially. benefits in choosing adjustable payments over balloon payments include a lower interest rate, and lower initial monthly payments. benefits in choosing balloon payments over fixed payments include lower interest rates, lower overall price, lower monthly payments, takes less time to pay off, and does not require a downpayment. benefits in choosing balloon payments over adjustable payments include, lower monthly payments (when averaged), takes less time to pay off, and lower overall price.

hence, option c, balloon payments, is the best option for demarco and tanya to make this purchase, for it will save them a minimum of $80811, and a maximum of $116,711.

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