The goods and services in a communist economy are controlled by the government. The government tends to make the decisions.
In a communist economy, the government tends to dictate the economic structure; thus, the economic instability here is out of the question. Thus, here every citizen is required in order to work to receive benefits, and those who don't have the said corresponding sanctions.
However, this tends to create an incentive to participate and to encourage economic growth. For almost a large part of the 20th century, about one-third of the world lived in communist countries. Where countries were ruled by dictatorial leaders.
Hence, under communism, none of the means of production are owned by the individuals.
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What is cost of living in insurance?
The cost of living is the sum of money required in a certain location and time frame to meet necessities including housing, food, taxes, and medical care.
To compare how expensive it is to live in one city against another, the cost of living is frequently utilised. Living expenses are influenced by salaries.
Cost of insurance costs, which are typically applied to variable and universal life insurance plans, are monthly fees for mortality, administration, and other expenditures incurred by the life insurance company.
Basic expenses including rent, bills, health care, and groceries are a part of daily life. The cost of living refers to these costs.
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What is North Korea's biggest economic problem?
North Korea's economy is centrally planned, with a limited but growing role for market allocation schemes. North Korea has maintained its core adherence to a centralized command economy as of 2022.
What are the biggest economic issues of North Korea?
North Korea's economy, which is among the least open and most centralized in the world, has ongoing difficulties. Due to years of underinvestment, a lack of replacement parts, and poor maintenance, the industrial capital stock is almost beyond repair.There were allegations of severe hunger in North Korea in 2021. A command economy, which is typical of communist countries, exists in North Korea. Because the government has complete control over all financial transactions, there is no business rivalry, which keeps the economy from growing.To know more about North Korea here
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Alesandro, a manager at Harwood Publishing, gave a bad reference to a former employee. Alesandro could most likely be accused of ________ if the information is both false and harmful.
The concept mentioned is Defamation. It is an unauthorized false statement of fact communicated to a third party that damages the person's reputation.
Defamation is giving false information about a person, place or thing to a third party, thereby damaging their reputation. It can be spoken or written.
It's a felony . Defamation is when something false and harmful is presented as fact to another person.
If the person defamed is a private person and not a celebrity or public figure, defamation can be proven even if the statement was made negligently to establish the truth. This means it is easier to prove defamation if you are an individual.
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According to the text, the recession and global economic crisis of 2008 ___ . Group of answer choices was predicted a decade earlier by Federal Reserve Chair Alan Greenspan shows that the world is less interconnected than is generally believed called into question the ideology and practice of less-regulated capitalism reaffirmed the dangers of too much government regulation of the market
According to the text, the recession and global economic crisis of 2008 called into question the ideology and practice of less-regulated capitalism, which means option C is the right answer.
The Global Financial crisis of 2008 was the second time when the economies of nations all over the world toppled and they had to suffer trade deficits and huge surge in prices of various commodities. It was mainly because real estate saw a huge set back in USA and wide increase in interest rates due to which the borrowers were unable to pay back their loans. There were various regulatory and policy errors which led to this situation. However many economists such as Raghuram Rajan predicted this situation years ago, however he was brutally criticized by Alan Greenspan. But later the study became evident when whole world faced the crisis in some or the other way and then US finally had to open its exports and imports for other smaller countries as well.
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what is selling the rights to place a brand name on products such as t-shirts referred to as?
It sells the right to put a brand name on products such as T-shirts, which is called license branding.
License means to rent or lease an intangible property. This is the process of creating and managing agreements between trademark owners and companies or individuals wishing to use the trademark in connection with their products for an agreed period of time in an agreed territory. Licenses are used by brand owners to extend their brands or characters to products of a completely different nature.
Examples of intangible assets include songs ("Somewhere Over The Rainbow"), characters (Donald Duck), names (Michael Jordan), and brands (The Ritz-Carlton). Any agreement to license a trademark requires a license agreement. A license agreement authorizes a company that sells products or services (licensee) to lease or rent a trademark from a trademark owner (licensor) that operates a licensing program.
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Which of the following statements is not true about a 4 for 1 stock split? a. Market price per share will decrease. b. Par value is reduced to _ of what it was before the split. c. Total stockholders' equity will increase. d. The number of shares issued is equal to 4 times the amount it was before the split.
With the exception of the market price per share after the split, all of the following are true of stock splits.
A stock split's main goal is what?
Increasing the number of outstanding shares and lowering the value of each share are two business actions that corporations can take through stock splits. Or to put it another way, investors benefit from bigger returns as the price of a company's stock rises.
In terms of stock splits, what is accurate?In order to increase the stock's liquidity, a corporation could split its shares into more shares. Because a split doesn't fundamentally alter the company's worth, even while the overall dollar value of all outstanding shares rises by a certain multiple, the total dollar value of all shares remains constant.
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If you had to analyze the non-consolidated accounts of a holding company of several industrial participations, which profit level would you focus on
I would focus on the holding company's net income or net profit, as it is a measure of the company's overall profitability. I would also look at EBITDA (Earnings before Interest, Taxes, Depreciation and Amortization) to get a sense of the company's operating performance, as well as other financial metrics.
Net income, also known as net profit, is a measure of a company's overall profitability. It is calculated by subtracting all expenses from revenue. This includes the cost of goods sold, operating expenses, and taxes. By analyzing the net income of a holding company, we can see how much money the company is making or losing after all expenses are taken into account.
EBITDA, or Earnings before Interest, Taxes, Depreciation and Amortization, is a measure of a company's operating performance. It is calculated by subtracting cost of goods sold, operating expenses, and depreciation & amortization from revenue. EBITDA gives us a sense of how much money a company is making from its core operations, without taking into account the impact of financing, taxes, and accounting decisions. This can be useful in determining a company's underlying financial health and the efficiency of the company's management.
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How do you keep up with a changing work environment?
Keep up with a changing work environment are Stay informed, Network, Adapt, Ask questions, Stay organized, Take initiative, and Be flexible.
What is environment?Environment is the natural world around us that is made up of living and nonliving things, including air, water, and land. Environment also includes physical features like mountains, forests, and deserts, as well as human-made features like buildings, roads, and dams. It is important to protect the environment as it provides us with resources to survive and also helps keep the Earth's climate in balance.
1. Stay informed: Keep up with industry news and trends to stay ahead of the curve.
2. Network: Attend conferences, seminars, and other events to stay connected with the latest developments in your field.
3. Adapt: Be open to learning new skills and technologies to stay competitive.
4. Ask questions: Don’t be afraid to ask questions and seek advice from colleagues and mentors.
5. Stay organized: Develop systems and processes to help you stay on top of your workload.
6. Take initiative: Look for opportunities to take on new projects and challenges.
7. Be flexible: Be willing to adjust to changing circumstances and priorities.
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Grainne is an inside salesperson who earns an annual salary of $32,800 (paid biweekly) plus a commission on quarterly sales that is paid on the first pay date on the next quarter. She receives a 1% commission for quarterly sales totaling $0 to $25,000, a 2% commission for quarterly sales totaling between $25,001 and $50,000, and a 3% commission for quarterly sales totaling over $50,001. During the second quarter, Grainne's quarterly sales totaled $46,750. What is her gross pay for the first pay period in July
Grainne's gross pay for the first pay period in July is $2,196.54.
Before taxes, benefits, and other paycheck deductions are taken out of an employee's paycheck, that amount is known as their gross pay. Net pay, often known as take-home pay, is the amount that is left after all withholdings have been taken into account.
The first step in figuring out an owner's gross pay is to determine how much is owed for each pay period. Hourly workers multiply their total work hours by their hourly rate, overtime pay, and any other applicable premiums.
Employees on a salary must divide their yearly earnings by the number of pay periods. Before taxes and other deductions, an employee's gross salary is the whole amount they earn. For instance, if your firm gives you a salary of $40,000 per year, that represents $40,000 in gross earnings.
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what are the three reporting agencies that provide free credit reports to consumers?
The three reporting agencies that provide free credit reports to consumers are Equifax, Experion and TransUnion.
There are three main credit reporting agencies, or CRAs as they are known colloquially, in the United States. These three firms are Experian, Equifax, and TransUnion. We've had these three primary competitors for nearly 20 years now, despite the fact that the credit reporting process has been around for well over a century.
There are numerous more minor reporting agencies, albeit the three biggest CRAs receive the most of attention. The majority of consumer reporting organizations primarily want to learn more about you, especially your history of credit management. For access to your information when you apply for credit, insurance, rent, utilities, and other services, lenders and other businesses must pay the credit bureaus. Lenders determine if you're likely to be a reliable borrower and make your payments on time in the future by looking at how you've handled credit in the past.
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How many types of mixed economy are there?
There are two types of mixed economy. The government sets up diligence, invests its own capital, purchases or hires productive coffers, and takes the threat of profit or loss like an ordinary entrepreneur.
There are also Joint Sector which is participated both by the Private and the Public Sector. A mixed economy combines the advantages and disadvantages of three types of husbandry request, command, and traditional economies. Indian frugality is mixed because both private and public sectors co-occur, and both work under the general guidance of profitable planning.
Exemplifications. The US frugality is stylishly described as a mixed frugality because, even though it explosively advocates free request principles, it relies on the government to deal with matters that the private sector overlooks, ranging from education to the terrain.
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The design for the new electric car had been approved by the board and production was underway, but the VP of Manufacturing was nervous about the rate of defective parts from subcontractors. He scheduled a meeting with a key supplier and wants to present evidence of how many months the Master Cylinder defects were greater than 20. What formula should be entered in cell C28 to get this information
COUNTIFS(Subassembly_Name,A28,Defectes,">20") formula should be entered in cell C28 to get this information.
In science, a formula is a compact manner of symbolically describing information, such as a mathematical formula or a chemical formula. In physics, the phrase formula refers to the general construct of a connection between given quantities. Under the influence of scientific Latin, the plural of formula might be formulas or formulae.
A formula in computing often outlines a computation, such as addition, that will be performed on one or more variables. A formula explaining how to determine the value of a cell, say A3, in spreadsheet software may be represented as =A1+A2
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The resources of land, labor, capital, entrepreneurship, and knowledge are: Multiple choice question.
The assets of land, labor, money, entrepreneurship, & knowledge are factors of production
What do u mean by production?Production is the method of mixing several inputs, both material (like metal, timber, glass, or polymers) and immaterial (like plans, or information) in order to produce output. In an ideal world, this output would be a product or service that is useful to people and has value.
Why is production crucial?Economic theory heavily emphasizes production. Because it applies work to land, it generates value for the economy. Thru the access to goods and services, that corresponds to increased utility, production also raises the level of living and quality of life.
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A required reserve ratio of 12 percent gives rise to a simple deposit multiplier of Oa. 83.33. O b. 8.33. Ос. 6.67. Od. 12
A required reserve ratio of 12 percent gives rise to simple deposit multiplier of 12.
What is a required reserve ratio?The necessary reserve ratio is the proportion of deposits that banks must hold in reserves in order to comply with Fed regulations. You may calculate the reserve ratio and learn how much of each dollar of deposits must be kept in reserves by dividing the percentage of deposits that must be held in reserves into a fraction. The reserve ratio is a key tool for monetary policy in an economy since it regulates the quantity of money in circulation. The central bank can increase the amount of money in the economy by reducing the reserve ratio. The Federal Reserve mandates that banks and other depository institutions keep a minimum amount of reserves against their liabilities.
Required reserve ratio= 12/1= 12
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If $535 is invested at an interest rate of 6% per year and is compounded continuously, how much will the investment be worth in 10 years? use the continuous compound interest formula: a = pert $1,307.12
a. $974.83
b. $973.38
c. $403.43
The investment will be worth $ 974.83 after ten years.
Explain about the compound interest?Financially referred to as compounding interest, compound interest is interest that accumulates over time on both the actual principle and cumulative interests. Simply explained, compound interest is the interest earned on the principal amount.
For a business, compound interest offers up new revenue streams. For instance, companies might appease investors by generating more earnings than anticipated. Investor dividends are anticipated from financial managers.
Compound interest is the name given to the interest you earn. You can understand how this works using basic math: if you start with $100 and it earns 5% interest every year, you will have $105 at the end of the first year. At the conclusion of the second year, you will have $110.25.
A = Pert, and e = 2.718
A = 535 * (2.718)^(10 * 0.06)
A = $ 974.83
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relation between education and profession in point
An education is a prerequisite for having a vocation. No matter what your profession is, you will learn a lot of things that will be useful to you in it.
An internship itself counts as education. When you first start out working with someone, that person is teaching you how to do the job you want to do. Prepare yourself for a lot of study if you intend to pursue a career as a doctor or lawyer. To prepare for any career, you must have at least a basic education. Read, write, multiply, divide, and other skills are necessary to ensure that you aren't at least slightly underpaid. You will not be successful without some sort of education. When you first start out working with someone, that person is teaching you how to do the job you want to do. Prepare yourself for a lot of study if you intend to pursue a career as a doctor or lawyer. You must have at least a fundamental education to be ready.
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Political instability within a country causes foreign direct investment to decrease dramatically, causing the economy to enter a recession, and decreasing real GDP from $80,000 to $50,000. What is the percent change in real GDP
Foreign direct investment drastically declines when there is political unrest within a nation; the real GDP changes by about 37.5% as a result.
Explain the significance of GDP in the economy.A country's economy is monitored by its gross domestic product. It symbolises the total worth of all products made within a nation's borders within a certain time period. If an economy is expanding or going through a recession, economists can tell by looking at the GDP. The size of the economy as a whole increases and the fiscal climate is strengthened with faster GDP growth. The standard of living for the average American is rising thanks to broadly shared rise in per capita GDP. Real GDP growth is frequently taken into account when assessing the state of the economy as a whole. A rise in real GDP is generally considered to be a positive indicator of the health of the economy.
New GDP - Old GDP/(Old GDP×100)=% change
Since real GDP shrank in this instance, the percent change is negative.
50,000-80,000/(80,000×100)=−37.5%
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Changes in departmental policies and procedures, court decisions, the specter of liability, and operational strategies and techniques demand that ________ training be provided.
In-service training is necessary due to changes in departmental rules and procedures, court rulings, the possibility of liability, and operational plans and approaches.
Proper in-service training, according to a member of the International Association of Chiefs of Police (IACP) staff, improves officer performance and lowers the risk of complaints and subsequent legal action. Additionally, roll-call training, which has the benefit of reaching staff in all shifts and divisions, may be used. Modules for scheduling might be weekly, daily, or monthly. Police personnel should be able to use the training materials, and they should be accurate and based on reliable research. Field observations, community feedback, written and spoken tests, and training effectiveness can all be evaluated. Important factors include officer input, program evaluation, and command staff and administrators' attendance. Last but not least, first-line supervisors should lead the majority of in-service training sessions using the agency's materials.
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Which of the following is not an opportunity for effective management in the supply chain?
O accurate "pull" data
O vendor-managed inventory
O bullwhip effect reduction
O local optimization
The correct answer to the given question about not an opportunity for effective management in supply chain is option d) Local Optimization.
A supply chain is a group of people and businesses responsible for producing a product and getting it to the consumer. The initial link in the chain are the suppliers of raw materials, and the last is the vehicle that transports the finished good to the client. The lower costs and increased productivity that result from an efficient supply network can be used to illustrate the significance of supply chain management. To reduce costs and keep up with competition, businesses improve their supply chains. The aspects of a supply chain include product development, marketing, operations, distribution, financing, and customer support. There are many worldwide supply chains in operation today.
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what is an example of a modern-day type of business or industry that has experienced rapid growth?
One example of a modern-day business or industry that has experienced rapid growth is the technology industry, specifically the sector of Cloud computing.
Cloud computing is a technology that enables businesses and individuals to store and access data and applications over the Internet rather than on physical devices. Cloud computing services include software as a service, platform as a service (PaaS), and infrastructure as a service. Cloud computing has experienced significant growth in recent years due to increased demand for remote work, digital transformation, and the need for scalable and cost-effective solutions.
Companies that provide cloud computing services such as Amazon Web Services (AWS), and Microsoft Azure, are among the largest and most valuable companies in the world. Moreover, the cloud computing market is expected to continue to grow as more and more businesses and organizations adopt cloud-based solutions.
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Which of the following would NOT be considered in the scope of organizational compliance efforts?
A. Laws
B. Company policy
C. Internal audit
D. Corporate culture
Laws would NOT be considered in the scope of organizational compliance efforts.
Hence, Option A is correct
Organizational compliance initiatives involve adhering to the rules, audits, culture, and standards of the organization. Not organizational compliance, but regulatory compliance is the domain of legal compliance. The most obvious benefit of compliance is a lower possibility of fines, penalties, work stoppages, lawsuits, or the collapse of your company. For instance, you might face a substantial fine from the authorities if you disregarded safety precautions and someone was hurt. Compliance is the process of ensuring that your business and workers abide by all applicable laws, rules, regulations, standards, and ethical guidelines. Being compliant with state and federal regulations entails adhering to corporate policies as well.To know more about organizational Compilance here
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Most tenants sign a lease. Which of the following is part of a lease agreement? a. The name and address of the buyer. b. The amount of the down payment c. The interest rate for a lease loan d. The sale date e. The conditions under which the landlord may enter the apartment.
Most renters a sign a lease. A leasing agreement must include the following: (e). the conditions of the landlord's access to the apartment.
Describe a lease agreement?A lease is a legal agreement that requires the user to pay the owner for the use of a property.
Common assets that are leased include real estate, buildings, and automobiles. Leasing is also done for commercial or industrial equipment. In its simplest form, a lease agreement is a contract between the lessor and the lessee. The asset is legally owned by the lessor, who also receives the right to use it in exchange for recurring rent payments from the lessee. In addition, the lessee undertakes to follow certain rules when using the property or equipment.
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Today's boards are being exhorted not only to raise money and promote the organization but also to:
Today's boards are being exhorted not only to raise money and promote the organization but also to be more aggressive in monitoring performance.
What Is the Function of a Nonprofit Board of Directors?Private companies and governmental entities don’t begin to fulfill many of the services that the general public needs. This is why governments created a structure that provides tax exemptions for nonprofit organizations. Governments designed the nonprofit structure so that boards are responsible for managing public donations responsibly, and don’t take advantage of not having to pay taxes. The board directors are the leaders who provide strong organizational structure. The Internal Revenue Service (IRS) doesn’t specify exactly who may serve on a nonprofit board of directors, so boards have the flexibility to appoint whomever they choose.The nonprofit realm has developed best practices to address areas of nonprofit operations that state and federal governments omit.
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Is there any product and/or service you can think of that is perfectly price inelastic in demand and is there a product or service you can think of that is perfectly price elastic in demand?
A product or service that is perfectly price inelastic in demand would be something like a life-saving medication or a public utility service such as electricity.
These items have a high degree of necessity and cannot be substituted with another product or service, so consumers will not be influenced by changes in price.
A product or service that is perfectly price elastic in demand would be something like a luxury item such as a designer handbag or a high-end electronic device. These items are not necessary and can be easily replaced with cheaper alternatives, so consumers are more sensitive to changes in price and can easily switch to a different product or service if the price increases.
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5. In the range B12:E12, Benicio wants to display a rating depending on the total sales for each quarter. He listed the rating criteria in the range A14:F15. For example, if total sales in Quarter 1 are between $5900 and $5999, the Performance rating is Good. Enter the performance ratings as follows: a. In cell B12, start to enter a formula using the HLOOKUP function
Finds a value in the top row of a table or an array of values and return a value in the same column from a row you choose in the table or array. Use HLOOKUP when the values you want to compare are in a row at the top of a data table and you want to look a certain number of rows down.
VLOOKUP is used when the values you want to compare are in a column to the left of the data you want to find. "Horizontal" is what the "H" in "HLOOKUP" stands for.
Syntax: HLOOKUP(lookup_value, table_array, row_index_num, [range_lookup])
This is the syntax for the HLOOKUP function:
Lookup_value: Required. This number can be found in the very first column of the table. Any number, reference, or text string can be used for the lookup value parameter.
Table_array: Required. It's a table where you can check information. Do this by mentioning a range or giving the range's name. The first row of the table array can include anything from text to numeric to logical data.
If range_lookup is TRUE, the first row of the table array must include the following values in ascending order: [...-2], [-1], [0], [1], [2], [A-Z], [FALSE], [TRUE]. The table array does not need to be sorted if the range lookup is set to FALSE. All text, whether capitalized or not, is treated the same. Put the numbers in left-to-right order, increasing values first.
Row_index_num: Required. The index of the table array row from which to retrieve the matched value. A row_index_num of 1 returns the first-row value in table_array, a row_index_num of 2 returns the second-row value in table_array, and so on. HLOOKUP will return the #VALUE! error if the row index num is less than 1, and the #REF! error if the row index num is larger than the number of rows on the table array.
Range_lookup: Optional. Whether you want HLOOKUP to locate an exact match or an approximate match, you can tell it how closely to search for it with this logical value. When TRUE or left blank, a close match is returned. That is, if the lookup value is not an exact match, the greatest possible value that is smaller than the lookup value will be returned. If FALSE, HLOOKUP will do a case-insensitive search. Not finding one causes the return of the error value #N/A.
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Many business people prefer to avoid difficult conversations because they worry that Multiple choice question. untruths that are told will lack credibility. listening to others will be boring. hearing critique of their work will take too much time. moments of honesty may backfire.
D) They worry that moments of honesty might backfire, many businesspeople prefer to avoid difficult conversations.
How can business communication be improved in four main ways?Work on your listening and paying attention skills, as well as your collaboration skills.Pay Close Attention to How You Use Your Free Time.Make the Right Investments in Tools for Collaboration and Communication.How can one speak with an attitude?Speak whatever comes to mind. Don't try to control what you say. What's the point if they're rude? You want to have an attitude, and having an attitude means not caring how your actions and words affect other people. Point out other people's mistakes.
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a power analysis reveals that the study being run has ow power. which method will not result in an increase in statistical power
A power analysis is a computation that determines the minimum sample size needed for an experiment given the necessary statistical power, effect size, and significance level.
What is power analysis?A power analysis is a computation that determines the minimum sample size needed for an experiment given the necessary statistical power, effect size, and significance level. It aids in determining if an experiment or survey result is genuine and noteworthy or the product of chance.
What happens when variance increases?The spread of scores in a data set normally increases as the variance of that data set increases. The main reason for this is because variance is a number that represents the average departure of each data point from the mean. When the variance is considerable, the data points are far off from both the mean and one another. The average of the squared deviations from each point to the mean is the variance. Calculating the variance follows a similar procedure to finding the MAD, or mean absolute deviation.
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You invested money in a savings account paying 8% interest seven years ago. The account is now worth $5,527.50. How much did you invest
Seven years ago, you made an investment in a bank account with 8% interest. Current value of the account is $5,527.50. Spending $3,225.24
What does being invested mean?to have invested a lot of time as well as energy into something and to deeply care about it. She has a great deal of interest in seeing this project through to completion.
What does it entail to emotionally invest?What does "emotional investment" mean? When we direct our emotional responses the form of our thoughts, emotions, and behaviors—into anything with the hope that it will eventually support and enhance our emotional wellbeing, we are said to be emotionally invested.
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Which is an example of a credible detail that supports your point in a persuasive proposal?
A. Established by the shipment received yesterday, the unit cost will be $1.50.
B. Based on a quick look around, those parts could be available soon.
C. We heard from a customer last year that the product was great.
D. We are confident that we can meet your requirements.
E. I promise the product works.
Option A is correct. Example of credible detail that supports your point in a persuasive proposal Established by the shipment received yesterday, the unit cost will be $1.50.
This is an example of a credible detail that supports a point in a persuasive proposal because it is specific, quantifiable, and can be verified. The cost is established by a shipment that was received yesterday and it's a clear number that can be used in the proposal to make a point. This information is much more convincing than the other options.
B. Based on a quick look around, those parts could be available soon. is not a credible detail because it's not verifiable and it's not based on a proper research.
C. We heard from a customer last year that the product was great. is not a credible detail because it's not verifiable and it's not based on recent feedbacks.
D. We are confident that we can meet your requirements. is not a credible detail because it's not verifiable and it's not based on a specific evidence.
E. I promise the product works. is not a credible detail because it's not verifiable and it's not based on a proper research.
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Assume prices increase by 11 percent from a base year in 2010 to 2011. The price index moves from 100 to 111 and therefore 1/111 x 100= _________ for the value (purchasing power) of a dollar.
The purchasing power of currency is the quantity of goods and services that can be bought with a monetary unit.
What does the purchasing power of a dollar mean?The purchasing power of a currency is the amount of goods and services that can be bought with one unit of the currency.Purchasing power (or buying power) is the amount of goods and services that a single unit of currency can buy. For example, if you purchase a can of soda for one US dollar, but the following year a can of soda costs two US dollars, the purchasing power of a single US dollar changed.Inflation is a general, sustained upward movement of prices for goods and services in an economy. It affects purchasing power or the amount of goods and services that a unit of currency can buy; more specifically, inflation reduces purchasing power. Data show the changing value of the dollar and its purchasing power.It can weaken over time due to inflation. That's because rising prices effectively decrease the number of goods or services you can buy.The purchasing power is the measurement of what a value of money can buy.The purchasing power of a currency in a particular year is calculated by dividing the consumer price index (CPI) of a base year by the CPI of the target rear and multiplying the result by 100.Therefore, the purchasing power for 2011 using 2010 as a base year, when the CPI moved from 100 to 111 from 2010 to 2011 is given by:Purchasing power = 100 / 111 x 100 = 90.09 x 100 = 90.09%Therefore, the purchasing power of 2011 relative to 2010 is 90.09%.To learn more about the purchasing power refer to:
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