Describe, with examples, the characteristics that make information valuable
What will be an ideal response?
Three characteristics that contribute to making information very valuable are: Timeliness, Accuracy, and Completeness.
Timeliness matters a great deal in some settings, and near real-time information often costs more. For example, people pay monthly subscription fees to financial service companies to get up-to-the minute stock prices, rather than the delayed price reports shown on free stock tickers one can add to their browser.
Accuracy may seem like an obvious attribute for valuable information, but there actually are degrees of accuracy. The more accurate the information required, the longer it may take to obtain, making extreme accuracy a trade-off to timeliness. A CEO who wants to know how much competitors charge for a rival product, for example, would have to wait quite a while for staff to scour all the distribution channels and assemble the data. An approximate but timely answer is more valuable.
Completeness adds considerable value, particularly as a means to avoid bias or spin. A marketing survey that polls customers as they enter a store will completely miss those who shop online, for example. The survey results would be incomplete without taking greater care to assess the interests of all the customers. Striving for complete information, however, may also introduce delays that affect timeliness.
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Output and employment in Country Y has fallen below its equilibrium level. Which of the following groups of economists is likely to believe that output and employment will return to its equilibrium level without government intervention?
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Chen's Department Store is a merchandising company that uses the periodic inventory system. Selected account balances are listed below: Sales $175,000 Purchases 90,000 Inventory (beginning) 23,000 Inventory (ending) 17,000 Purchase returns and allowances 3,000 Purchase discounts 7,000 Transportation-in 4,000 Sales discounts 8,000 Sales returns and allowances 5,000 Refer to the account information
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