The article "U.S. to reimpose tariffs on aluminum imports from Canada" reports that the U.S. government has announced it will reimpose tariffs on aluminum imports from Canada, citing an increase in imports in recent months. This move is expected to cause tension between the two countries, as Canada has threatened to retaliate with tariffs of its own. The tariffs are seen as a setback to the newly-ratified U.S.-Mexico-Canada Agreement (USMCA), which was supposed to create a trilateral free trade zone between the three countries.
Realist vs. Liberal perspectives on trade conflicts:The realist perspective on trade conflicts views them as a zero-sum game, in which countries compete for power and resources. In this view, countries use trade as a tool to gain a strategic advantage over their rivals, and they will use whatever means necessary to protect their domestic industries. The U.S. imposition of tariffs on Canadian aluminum imports can be seen as an example of this realist perspective, as the U.S. government seeks to protect its domestic aluminum industry from competition from Canada.
The liberal perspective on trade conflicts views them as a positive-sum game, in which countries can benefit from increased trade and economic interdependence. In this view, trade can promote peace and prosperity by creating mutual benefits for all parties involved. The newly-ratified USMCA is an example of this liberal perspective, as it seeks to create a trilateral free trade zone between the U.S., Canada, and Mexico. However, the U.S. imposition of tariffs on Canadian aluminum imports can be seen as a setback to this liberal vision, as it creates tension and uncertainty between the two countries.
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FILL IN THE BLANK. In reality,AD rarely ________;however,the economy performs as though it does when it ________.
In reality, AD rarely stabilizes; however, the economy performs as though it does when it does stabilize.
In reality, AD rarely stays fixed and is constantly fluctuating due to changes in consumer behavior, business investment, and government spending. However, the economy often behaves as if AD is a fixed constant, which can lead to unexpected economic outcomes. This is because economic models and policies are often based on the assumption that AD is a stable and predictable factor that can be manipulated to achieve certain goals, such as controlling inflation or promoting economic growth.
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What are some criteria for determining whether a sport product isglobal or not? Give an example of each and explain why
There are several criteria for determining whether a sport product is global or not, including:
1. Geographic reach: A global sport product should have a wide geographic reach, meaning that it is popular and accessible in multiple countries and regions around the world. For example, soccer is considered a global sport because it is played and enjoyed by people in many countries, including Brazil, Spain, Germany, and China.
2. Cultural relevance: A global sport product should be culturally relevant across different regions and societies. This means that it should resonate with people from diverse backgrounds and reflect universal values and interests. For instance, basketball is considered a global sport because it appeals to people of all ages and backgrounds, and its values of teamwork, discipline, and perseverance are universal.
3. Commercial impact: A global sport product should have significant commercial impact and generate revenue from multiple sources, such as broadcasting, sponsorship, merchandising, and ticket sales. This means that it should be attractive to advertisers, investors, and consumers worldwide. An example of a global sport product with a high commercial impact is Formula 1 racing, which generates billions of dollars in revenue each year from broadcasting rights, advertising, and sponsorships.
4. Organizational structure: A global sport product should have a strong and centralized organizational structure that can coordinate and regulate its activities worldwide. This means that it should have well-established governing bodies, rules, and standards that ensure fairness, safety, and integrity. An example of a global sport product with a strong organizational structure is the Olympic Games, which are overseen by the International Olympic Committee and involve thousands of athletes from around the world.
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Given current interest rates, it is highly unlikely that the total interest cost on a long term loan such as 30 year mortgage will be any greater than 1/4 of the loan amount. True or False?
The statement 'Given current interest rates, it is highly unlikely that the total interest cost on a long term loan such as 30 year mortgage will be any greater than 1/4 of the loan amount' is False.
The statement is overly generalized and not necessarily true in all cases. The total interest cost on a long-term loan such as a 30-year mortgage will depend on several factors such as the loan amount, interest rate, and the length of the loan term.
While current interest rates may be low, the interest cost on a 30-year mortgage could still be higher than 1/4 of the loan amount if the loan amount is large or if the interest rate is significantly higher.
For example, let's assume a mortgage of $500,000 with an interest rate of 4% over 30 years. In this case, the total interest cost over the life of the loan would be approximately $359,347, which is more than 1/4 of the loan amount.
Therefore, it is important to carefully consider the terms of any loan and to calculate the total interest cost over the life of the loan before making a decision.
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wright co. is a small, privately-held entity established at the beginning of year 1. wright decided to prepare cash basis financial statements. at the end of year 1, the company recorded receivables of $2,000,000 and accrued expenses of $900,000, which were included in the total expenses incurred for the year of $2,200,000, with $1,300,000 paid during the year. cash sales of $1,200,000 were fully recognized for the year. what is the company's cash-basis income/loss from operations at the end of year 1?
By the conclusion of the first year, the company had a $100,000 loss on a cash basis. Keep track of simply your cash outflows and inflows; too much additional information is provided.
Briefing:-$1,300,000 in cash spent on costs during the year
$1,200,000 Loss of $100,000 on cash sales during the year.
If an uncollectible account receivable is written off, does the total amount of assets remain the same?The adjusting entry to record uncollectible accounts expenditure has no impact on the net realizable value of receivables.
Which of the next financial statements is suitable for use by everyone?forecasting money. A financial forecast is a forecasted financial statement that is suitable for general use and is based on the entity's prior performance.
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2. Real Estate Market, Aggregate Demand (3 marks). Between 2020 and 2022, property prices across Australia have increased by 30% on average. This has affected the wealth of Australian households and firms. Approximately 70 percent of Australian households own or are in the process of purchasing a home. Moreover, many large firms own properties, which are often used to borrow funds for investment. As the value of properties has increased, this has had an impact on the wealth of some households and the amount that firms can borrow. As household wealth and the amount that firms can borrow have increased, household consumption expenditure and firm investment have increased. Use a Keynesian model of the macroeconomy to describe how this increase in consumption and investment would have affected the output in the Australian economy. Be specific and describe what components of expenditure are affected and why.
The increase in property prices in Australia has led to an increase in the wealth of households and firms, which has resulted in an increase in consumption expenditure and firm investment.
According to the Keynesian model of the macroeconomy, an increase in aggregate demand leads to an increase in output. In this case, the increase in consumption expenditure by households and firm investment would increase the aggregate demand, which would result in an increase in output. The increase in consumption expenditure would affect the component of expenditure, C (consumption), while the increase in firm investment would affect the component of expenditure, I (investment). Both of these components of expenditure would lead to an increase in the aggregate demand and, therefore, an increase in output.
The increase in consumption expenditure can be explained by the wealth effect. When the value of properties increases, households feel richer and are more likely to increase their consumption expenditure. On the other hand, the increase in firm investment can be explained by the availability of more funds for investment due to the increased value of their properties.
Overall, the increase in property prices has had a positive impact on the output of the Australian economy due to the increase in consumption expenditure and firm investment, which led to an increase in aggregate demand.
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In taking the perspective of contingency theory, one would reject the notion of a universal solution to innovation management.
True or False?
In taking the perspective of contingency theory, one would reject the notion of a universal solution to innovation management.True
Contingency theory is based on the idea that there is no universal solution or the best way to manage innovation. Instead, the most effective approach will depend on a variety of internal and external factors, such as the organization's size, structure, culture, resources, and competitive landscape.
This means that managers must tailor their innovation management strategies to the unique context in which they operate, rather than relying on a one-size-fits-all approach. By considering the specific contingencies that affect innovation management, managers can develop strategies that are better suited to their organization's needs and challenges.
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Problem #1 The Money Market Use your understanding about the monetary supply and demand model to answer the following questions. a) What are the four determinants of money holding? Explain how they work briefly. (5 Marks)b) Suppose there exists an increase in the quantity of money supply. If people's willingness to hold money remains the same as before, what would people do? What effects can be expected? Show your analysis in a diagram. (6 Marks) c) Repeat the analysis in Part b) under a circumstance of a reduction in the quantity of money supply. (4 Marks)
The four determinants of money holding are : Income level, Price level, Interest rates, Expected future changes in prices. People may decrease spending and investments due to higher borrowing costs, potentially causing an economic slowdown.
The following four factors affect how much money is held:
1) Income level, where higher income leads to higher money demand as individuals can spend more;
2) Price level, with higher prices resulting in higher money demand to maintain purchasing power;
3) Interest rates, as higher rates discourage holding money due to opportunity cost; and
4) Expected future changes in prices, interest rates, or income, which influence current money demand based on future expectations.
If there is an increase in money supply but people's willingness to hold money remains the same, individuals would spend or invest the excess money. This can lead to higher demand for goods and services, increased investment, and potentially inflation.
In a diagram, the money supply curve would shift to the right, resulting in a lower interest rate and higher equilibrium quantity of money.
In the case of a reduction in money supply, the opposite occurs. The money supply curve would shift to the left, leading to higher interest rates and a lower equilibrium quantity of money.
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which of the following is a job function typically not performed by sport public relations specialists? select one: a. crisis management b. facility management c. fostering relationships with media d. generating and managing story ideas
Facility management is a job function typically not performed by sport public relations specialists. Therefore, the correct answer is: b. Facility management.
Sport public relations specialists are responsible for promoting the image and reputation of a sports team, athlete, or organization. They work to build and maintain relationships with the media, manage communications, and promote events and activities. Some of the key job functions typically performed by sport public relations specialists include crisis management, fostering relationships with media, and generating and managing story ideas. Facility management, on the other hand, involves overseeing the physical infrastructure of a building or facility, including maintenance, operations, and safety. While facility management may be an important aspect of running a sports team or organization, it is typically handled by a separate department or team of professionals, such as facility managers or operations managers.
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To ensure that innovations are more difficult for their competitors to copy, organizations often take a multidimensional approach.
True or False?
To stay ahead of the competition, organizations often adopt a multidimensional approach to innovation that makes it more difficult for competitors to copy.True
This can include a combination of strategies such as patenting, trade secrets, exclusive partnerships, and developing unique processes or technologies that are difficult to replicate. By leveraging multiple dimensions of protection, organizations can create a competitive advantage that is difficult for others to imitate.
Additionally, multidimensional approaches to innovation can help organizations to better control their intellectual property and ensure that their innovations are properly protected from infringement, which can help to sustain their competitive edge over time.
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Explain the economic impact space exploration will make tonations and businesses?
Space exploration has the potential to have a significant economic impact on both nations and businesses. Firstly, space exploration requires large amounts of funding and investment, leading to the creation of jobs and stimulating economic growth in the industries involved.
As nations and businesses invest in space exploration, they are also investing in the development of new technologies and innovations that can be applied to other industries, leading to further economic growth and development. Furthermore, which can benefit both nations and businesses. For example, the discovery of new minerals or other resources on other planets or asteroids can lead to new industries and business opportunities.
Additionally, space exploration can also lead to the development of new technologies that have practical applications on Earth, such as improved communication systems, medical equipment, and transportation systems, Overall, the economic impact of space exploration is significant and has the potential to benefit both nations and businesses in numerous ways. By investing in space exploration.
In conclusion, the economic impact of space exploration on nations and businesses is significant, as it leads to increased investment, job creation, and new business opportunities.
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The components of marginal revenue
Shen's Fire Engines is the sole seller of fire engines in the fictional country of Pyrotania. Initially, Shen produced four fire engines, but he has decided to increase production to five fire engines. The following graph shows the demand curve Shen faces. As you can see, to sell the additional engine, Shen must lower his price from $105,000 to $90,000 per fire engine. Note that while Shen gains revenue from the additional engine he sells, he also loses revenue from the initial four engines because he sells them all at the lower price.
The marginal revenue for producing and selling the fifth fire engine is $30,000.
The components of marginal revenue for Shen's Fire Engines can be broken down into two parts:
1. Revenue gained from selling the additional fire engine: Shen decides to increase production from four to five fire engines. To sell the fifth engine, he must lower the price to $90,000. The revenue gained from selling the additional engine is $90,000.
2. Revenue lost due to lowering the price of the initial four engines: When Shen lowers the price to sell the fifth engine, he also sells the initial four engines at the lower price of $90,000 instead of $105,000. This results in a revenue loss of ($105,000 - $90,000) x 4 = $60,000.
To calculate the marginal revenue, subtract the revenue lost from the revenue gained: $90,000 (revenue gained) - $60,000 (revenue lost) = $30,000.
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Nasty Break-Up. Harold wants to purchase a lot next door to Sarah's home that is owned by Sarah. Harold knows Sarah will not sell the lot to him because they dated in the past and had a nasty break-up. Harold agrees with Alice that Alice will purchase the lot from Sarah for him. Alice and Sarah reach an agreement and enter into a contract whereby Sarah is to sell the lot to Alice for a price within the scope of Alice's authority. Alice tells Sarah nothing about her plan to later transfer the lot to Harold. Before title to the lot is transferred to Alice, Harold tells Alice that he no longer wants the lot. Alice tells Sarah about Harold. Sarah tells Alice that as far as she is concerned, Alice has bought the lot. Sarah says that she plans to move anyway and really does not care whether Alice or Harold ends up with the lot. She just wants her money. Which of the following is true regarding whether Alice is personally bound on the contract with Sarah?
Multiple Choice
Alice is not personally bound, because she was acting Harold's behalf.
Alice is personally bound, unless she can establish that Sarah would not have sold her the lot if she had known that Harold was involved.
Alice is personally bound, unless she can establish that Harold has the funds with which to pay Sarah.
Alice is not personally bound, unless Harold has legally filed for bankruptcy.
Alice is personally bound.
Alice is personally bound on the contract with Sarah, unless she can establish that Sarah would not have sold her the lot if she had known that Harold was involved.
This is because Alice entered into the contract with Sarah without disclosing her intention to later transfer the lot to Harold, and Sarah has fulfilled her end of the agreement by agreeing to sell the lot to Alice. Therefore, Sarah has a legal right to enforce the contract against Alice. However, Alice may have a defense if she can prove that Sarah would not have sold her the lot if she had known about Harold's involvement, which would make the contract voidable.
Alice is personally bound by the contract with Sarah unless she can establish that Sarah would not have sold her the lot if she had known Harold was involved.
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With respect to product descriptors, the product's __________ communicate(s) how the product behaves, hopefully in a fashion that is distinctive and appealing to customers.mass marketing
co-branding
advantages
market specialization
evoked set
With respect to product descriptors, the product's advantages communicate how the product behaves, hopefully in a fashion that is distinctive and appealing to customers.
Product advantages are the specific benefits or features that set a product apart from its competitors and appeal to the target audience. By highlighting these advantages in product descriptors and other marketing materials, companies can differentiate their products and create a unique selling proposition that resonates with consumers.
In addition to advantages, other product descriptors may include co-branding, market specialization, evoked set, and mass marketing, each of which can play a role in defining and positioning a product in the marketplace.
Overall, effective product descriptors should be clear, concise, and focused on the unique benefits that the product provides to its target audience.
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When the Fed purchases short-term government securities from banks, the primary effect on excess reserves is that they:
When the Fed purchases short-term government securities from banks, the primary effect on excess reserves is that they increase. Excess reserves refer to the funds that banks hold above the required reserve ratio set by the Federal Reserve.
The purchase of government securities by the Fed is one of the ways in which it conducts open market operations to influence the money supply and interest rates. When the Fed buys government securities from banks, it pays for them with newly created electronic funds. These funds are deposited in the bank's reserve account, which increases the bank's excess reserves. This increase in excess reserves can potentially lead to an increase in lending and the money supply, which can stimulate economic growth.
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From the evidence that we have, the Great Depression might have come to an end earlier if spending by the Federal Government on the economy had been
A. Even less than what FDR got Congress to spend
B. Even more than what FDR got Congress to spend
C. Both A and B
D. None of the above
Based on the evidence available, it is possible that the Great Depression might have come to an end earlier if the Federal Government had spent more on the economy than what FDR got Congress to spend. Therefore, option B, "Even more than what FDR got Congress to spend," is the correct answer.
During the Great Depression, the United States was in a severe economic downturn, with high levels of unemployment and low levels of economic activity. President Franklin D. Roosevelt (FDR) implemented a series of policies and programs, known as the New Deal, to stimulate economic growth and recovery. These policies included increased government spending on infrastructure projects, such as roads and bridges, and social programs, such as Social Security and unemployment insurance.
While the New Deal did help to alleviate some of the worst effects of the Great Depression, it was not until the United States entered World War II and increased government spending on the war effort that the country experienced a full economic recovery. This suggests that, in hindsight, the Federal Government may have been able to end the Great Depression earlier if it had spent even more on the economy than what FDR got Congress to spend.
Therefore, option B, "Even more than what FDR got Congress to spend," is the correct answer to the question.
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When applying LCM, the Net Income of a firm-always goes down-always goes up-sometimes goes up and sometimes goes down-doesn't change, since LCM only changes Cost of Goods Sold
Net Income is the total profit earned by a firm during an accounting period. When applying the Last-in First-out (LIFO) Cost of Goods Sold (COGS) method, it is not guaranteed that a firm's Net Income will always increase.
The LIFO method of accounting is used to determine the cost of goods sold by selecting the last goods purchased to be the first goods sold. This method is advantageous when prices are increasing, as the most recent costs of goods sold are recognized.
However, if prices are decreasing, the LIFO method will reduce the reported Net Income, as higher costs are recognized. In other words, when applying LIFO, the Net Income of a firm can sometimes go up, and sometimes go down. It should also be noted that LCM only changes the Cost of Goods Sold, and not the Net Income.
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The Mexican Peso, the Japanese Yen, and Pokemon Go closing case
Nintendo’s hit game Pokemon Go is a lot less lucrative in Mexico than the Japanese company originally thought it would be. This is because Mexicans purchase the "Pokecoins" they need to navigate the game in Mexican pesos, and the peso has been falling in value against the Japanese yen. Back in early 2015, 1 Mexican peso bought 8 Japanese yen. By September-2016, 1 peso was only worth about 5.1 Japanese yen. This meant that when pesos spent on Pokemon Go were translated back into Japanese yen, they were worth less in yen, which negatively affected Nintendo’s profits from Mexico.
The diverging values on the yen and peso are a function of their exchange rates against the U.S. dollar. Most trades between the yen and the peso are converted through the U.S. dollar, rather than traded directly. This is because the U.S. dollar is the world’s most widely traded and liquid currency. It’s easier to trade dollars for yen, and dollars for pesos, than it is to trade yen for pesos. For much of 2016, the yen gained against the dollar, while the Mexican peso fell, leading to a fall in the peso/yen exchange rate.
The strength of the yen reflected the belief that Japan is a safe haven in which to park cash. Although the Japanese economy has been stagnant for decades, inflation is low and the yen has been a strong currency. The Mexican peso is the most liquid emerging market currency, which makes it an easy one to sell when investors worry about the economic strength of developing economies, which they did in 2015 and 2016. To compound matters, worries about the health of the Mexican economy following the election of Donald Trump to the U.S. presidency put further pressure on the peso. Trump threatened to pull the United States out of NAFTA—the regional trade deal that has been a major boon for Mexico. The Mexican peso hit a record low against the U.S. dollar following the election of Mr. Trump.
In addition to Nintendo, the fall in the value of the peso against the yen has created problems for other Japanese firms. Japanese automakers have significant assembly operations in Mexico. Companies such as Toyota and Mazda import a large number of specialty electronic components from suppliers in Japan. The price of these components has gone up when translated into pesos, raising costs for their Mexican operations and making them less profitable.
On the other hand, the weak peso has boosted demand for some Mexican products in Japan. For example, Japan imports a large quantity of frozen Mexican pork. The price has fallen when translated into yen and demand has surged. Mexico dices up the pork and exports it to Japanese convenience stores, where it is sold in bento boxes. The dicing process is labor intensive—and one less step they have to perform in Japan. Mexico can do it cheaper, and the currency moves have only added to the cost savings, which is good for Japanese consumers.
Read the closing case "The Mexican Peso, the Japanese Yen, and Pokemon Go." It explores the implications of the changing value of the peso against the yen on Japanese game maker Nintendo. Examine the issues relevant to the case from the perspective of the following questions:
(a) Why are most trades between the Japanese yen and the Mexican peso made through U.S. dollars?
(b) Explain why the peso fell in value against the Japanese yen during 2016. How predictable was this fall?
(c) What were the benefits and costs of the fall in the value of the peso against the yen for Mexican and Japanese companies respectively?
(d) Should Japanese companies such as Nintendo and Toyota with business in Mexico have hedged against adverse changes in the peso/yen exchange rate? How might they have done that?
(a) Most trades between the Japanese yen and the Mexican peso are made through U.S. dollars because the U.S. dollar is the world's most widely traded and liquid currency, making it easier to trade dollars for yen and pesos.
(b) The peso fell in value against the Japanese yen during 2016 due to the diverging exchange rates against the U.S. dollar. The yen gained strength due to its perceived status as a safe haven for cash, while worries about the health of the Mexican economy and the election of Donald Trump put pressure on the peso. The fall in value was predictable to some extent, given the economic and political circumstances.
(c) The fall in the value of the peso against the yen had both benefits and costs for Mexican and Japanese companies. For Japanese firms such as Nintendo and Toyota, the fall in the value of the peso made their Mexican operations less profitable and raised costs for imported electronic components. However, the weak peso also boosted demand for some Mexican products in Japan, such as frozen pork. Mexican companies could do the dicing process cheaper, and the currency moves only added to the cost savings.
d) Japanese companies with business in Mexico could have hedged against adverse changes in the peso/yen exchange rate by using financial instruments such as forward contracts or options. This would have allowed them to lock in exchange rates and reduce their exposure to currency fluctuations. However, hedging comes with costs and may not always be necessary depending on the company's risk tolerance and financial situation.
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What is the current yield for a $1,000 corporate bond that pays 13 percent and has a current market value of $880
The current yield for the $1,000 corporate bond that pays 13% and has a market value of $880 is 14.8%.
Current yield refers to the annual return on investment, expressed as a percentage of the current market price of a security. To calculate the current yield of the given bond, we need to divide the annual interest payment ($130) by the current market value ($880), which gives us 0.1477 or 14.8%.
This means that the bond is currently offering a yield of 14.8% to investors, which is higher than its stated coupon rate of 13%. A higher current yield indicates a better return on investment, but it also means that the bond is riskier, as its price has fallen below its face value, and investors may face a higher risk of default.
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Consider an economy without population growth and technological progress. This economy has two sectors: Sector Old and Sector New. The capital stocks in Sector New (Type-I) and Sector Old (Type-II) ar re denoted by K, and K2, respectively. The labor force is represented by L. Suppose the production functions in the two sectors are Sector New: Y(t)=a (K (0)' (L(t))", Sector Old: Y(t)=3(K,0)(L(t)), 1- where a > B>0, 0< <1. A fraction of output would be saved for investment. Furthermore, Type-I and Type-II capital depreciate at the same rate 8 >0. The initial capital stocks satisfy K (0)= K (0) > and are lower than their underlying steady states. For part 1, suppose the economy can invest in only ONE sector because of certain institutional constraints, i.e. the economy must choose only one type of capital to invest in to reach a higher level of steady state. (1.a) What is the per-worker production function? (1.b) Let the saving rate s E (0,2), what will be the capital per worker, output per worker and consumption per worker in the steady state as a function ofa, B, 0, 8, and s? Find the saving rate which maximizes the steady-state output per worker. Explain whether you think the output-maximizing saving rate is plausible or not as a fit of the real world. If not, what should be a more reasonable range for the saving rate in the model? (1.c) Find the Golden Rule level of capital per worker, output per worker, consumption per worker, and the associated saving rate. (1.d) Assume 0 = 0.5 and now the economy is in the steady state associated with the saving rate S=0.7. Based on the findings in parts (a), (b), and (c), how can you adjust the saving rate to maximize the steady-state consumption per worker? Explain the dynamics of output per worker, consumption per worker, and savings per worker in the process of adjustment from the original steady state to the new steady state with well labeled graphs. (1.e) Under the model framework as above, now we set 8 = 0. Explain why 8 = o results in a constantly rising output per worker (i.e., steady states no longer exist for per worker units even without technological progress). Also, explain the intuitions behind.
The per-worker production function can be derived by dividing the production functions in each sector by the number of workers, L(t), for each sector.
Thus, we get:
Sector New: y(t) = a [tex](k(t)^(1-θ))/(L(t)^θ)[/tex]
Sector Old: y(t) = 3(k2(t))/(L(t))
where y(t) is output per worker, k(t) is the capital per worker in Sector New, and k2(t) is the capital per worker in Sector Old.
In the steady state, capital per worker and output per worker do not change over time, and investment equals depreciation. Therefore, we have:
k/ L =[tex][(s a k^(1-θ))/(θ+δ)]^(1/(θ-1))[/tex]
k2/ L =[tex][(s3k2)/δ]^(1/2)[/tex]
where δ is the depreciation rate, and s is the saving rate.
Using these equations, we can solve for the steady-state values of k/L, y/L, and c/L:
k/L =[tex][(s a)/(θ+δ)]^(1/(1-θ))[/tex]
y/L = [tex]a(k/L)^θ[/tex]
c/L = y/L - δ(k/L)
To maximize the steady-state output per worker, we can take the derivative of y/L with respect to s and set it equal to zero:
d(y/L)/ds =[tex][a θ (k/L)^(θ-1)/(θ+δ)]s^(θ/(1-θ)) - 3(k2/L)^2[/tex] = 0
Solving for s, we get:
s* =[tex][3(k2/L)^2/ {a θ (k/L)^(θ-1)/(θ+δ)}]^(1/(1+θ))[/tex]
This saving rate maximizes steady-state output per worker.
The output-maximizing saving rate may not be plausible in the real world because it is relatively high, which suggests a high level of investment. However, in the absence of population growth and technological progress, it is possible for a country to save a large fraction of its output. In reality, the optimal saving rate depends on a variety of factors, such as the level of economic development, the degree of risk aversion among households, and the availability of investment opportunities.
The Golden Rule level of capital per worker, kgr/L, is the level that maximizes consumption per worker in the steady state. This occurs when the marginal product of capital equals the rate of time preference, or the rate at which households discount future consumption relative to current consumption. Mathematically, we have:
[tex]a θ (kgr/L)^(θ-1)/(θ+δ)[/tex]= δ + ρ
where ρ is the rate of time preference. Solving for kgr/L, we get:
kgr/L = [(a θ)/(ρ+δ)]^(1/(1-θ))
The associated output per worker and consumption per worker are:
ygr/L = [tex]a(kgr/L)^θ[/tex]
cgr/L = ygr/L - δ(kgr/L)
(1.d) To maximize steady-state consumption per worker, we can take the derivative of c/L with respect to s and set it equal to zero:
d(c/L)/ds =[tex]θ a (k/L)^(θ-1)/(θ+δ) - δ[/tex]= 0
Solving for s, we get:
s** =[tex]θ/(θ+δ) * (a/(δ+ρ))^(1/(1-θ))[/tex].
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Question One: Multiple Choice Questions (10 Marks) 1. A policy-induced movement along the production possibility frontier can be justified in terms of ... a) the Pareto criterion b) the Bergson criterion. c) the Pareto and Bergson criterion. d) None of the above options are correct
In terms of a) the Pareto criterion, a policy-induced movement along the production possibility frontier can be justified.
A policy is a purposeful set of guidelines created to control behaviour and generate reasonable results. A policy is a statement of goals that is implemented through a process or routine. Typically, an organization's governance body adopts policies. Policymaking can be advantageous for both rational and irrational decision-making.
Senior management frequently uses policies in subjective decision-making to assist with decisions that must be based on the relative merits of a range of aspects and are therefore frequently challenging to evaluate objectively.
The work-life balance policy is an illustration of how such a guideline might be put into practice. Governments and other institutions enact a wide range of policies, such as laws, rules, instructions, administrative processes, financial incentives, and unofficial customs.
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which of the following transactions would likely involve multiple performance obligations? multiple choice question. seller delivers goods one time without future obligation seller delivers goods and promises to provide related service over a 12-month period seller promises to deliver the same type of goods at consistent intervals
The seller is obligated to not only deliver goods, but also provide a related service for a specific period of time
The transaction that would likely involve multiple performance obligations is "seller delivers goods and promises to provide related service over a 12-month period". This is because the seller is obligated to not only deliver goods, but also provide a related service for a specific period of time, which constitutes multiple performance obligations. In the other two transactions, the obligation is limited to the delivery of goods without any future obligation or consistent intervals, respectively, which do not involve multiple performance obligations.
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mark price company uses the gross profit method to estimate inventory for monthly reporting purposes. presented below is information for the month of may. inventory, may 1 $00160,000 purchases (gross) 640,000 freight-in 30,000 sales revenue 1,000,000 sales returns 70,000 purchase discounts 12,000 instructions a. compute the estimated inventory at may 31, assuming that the gross profit is 30% of sales. b. compute the estimated inventory at may 31, assuming that the gross profit is 30% of cost.
a. Estimated inventory at May 31 using gross profit of 30% of sales is $204,000. b. Estimated inventory at May 31 using gross profit of 30% of cost is $232,000.
a. Using the gross profit method and assuming that the gross profit is 30% of sales, the estimated inventory at May 31 is calculated as follows:
Beginning Inventory + Purchases - Cost of Goods Sold = Ending Inventory
$160,000 + $640,000 - ($1,000,000 - $70,000 - $12,000) = $186,000
b. Using the gross profit method and assuming that the gross profit is 30% of cost, the estimated inventory at May 31 is calculated as follows:
Beginning Inventory + Purchases - (Cost of Goods Sold / (1 - Gross Profit Rate)) = Ending Inventory
$160,000 + $640,000 - ($720,000 / 0.7) = $164,000
In both cases, the estimated inventory at May 31 is calculated by subtracting the cost of goods sold from the sum of the beginning inventory and purchases. The difference represents the estimated ending inventory based on the gross profit rate assumption.
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Trade creation and trade diversion Suppose that with free trade, the cost to the United States of importing a calculator from Mexico is $12.00, and the cost of importing a calculator from China is $10.00. A calculator produced in the United States costs $16.00. Suppose further that before NAFTA, the United States maintained a tariff of 65% against all calculator imports. Then, under NAFTA, all tariffs between Mexico and the United States are removed, while the tariff against imports from China remains in effect. Assume that the tariff does not affect the world price of calculators. In the following table, indicate which country the United States imported calculators from before NAFTA. Then indicate which country the United States imported calculators from under NAFTA. Check all that apply. (Note: Leave the row blank if the United States doesn't import from either country.)Stakeholder Gains Loses Neither Gains nor LosesConsumers in the United States Chinese producers U.S. government Mexican producers This is an example of trade ___ (creation/diversion) resulting from a regional agreement.
Before NAFTA, the United States imported calculators from China because the cost of importing a calculator from China ($10.00) was lower than the cost of importing from Mexico ($12.00) or producing domestically ($16.00).
With the removal of tariffs between Mexico and the United States under NAFTA, the cost of importing from Mexico becomes lower than the cost of importing from China. Therefore, the United States would import calculators from Mexico under NAFTA.
Stakeholder Gains: Consumers in the United States, Mexican producers
Loses: Chinese producers, U.S. government
Neither Gains nor Loses: N/A
This is an example of trade creation resulting from a regional agreement. Trade creation refers to the creation of new trade flows resulting from the removal of barriers to trade, which leads to increased efficiency and welfare gains. In this case, the removal of tariffs between Mexico and the United States leads to increased trade flows between the two countries, resulting in increased efficiency and welfare gains.
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(ch5) An example of diffusion rather than independent invention is the...
An example of diffusion rather than independent invention is the spread of agriculture from the Fertile Crescent to neighboring regions.
Agriculture is believed to have originated independently in several regions around the world, including East Asia, South America, and Sub-Saharan Africa. However, the spread of agriculture from its origin in the Fertile Crescent to neighboring regions, such as the Mediterranean, Europe, and Central Asia, is considered an example of diffusion. This is because the spread of agriculture was facilitated by the movement of people, crops, and livestock, as well as the exchange of knowledge and technology between different societies.
Diffusion is a process by which cultural traits or innovations spread from one society to another. It can occur through migration, trade, warfare, or other forms of contact between societies. Diffusion can lead to the spread of new ideas, practices, and technologies, and can have both positive and negative effects on the societies involved.
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you serve on the advisory committee of your college's bookstore, which is a private business that leases space on campus and donates 10 percent of its profits to student scholarships. the head of the bookstore wishes to stock simple study guides, a popular series of plot summaries and character analysis of classic literary works. in similar bookstores, the sale of simple study guides yields annual profits of over $10,000. six academic departments have signed a statement condemning the idea. should you support the bookstore head or the academic departments?
As an advisor on the college's bookstore committee, the primary consideration should be the mission and objectives of the bookstore.
The mission of the bookstore is to generate profits to support student scholarships, and stocking the popular Simple Study Guides series could potentially help achieve this goal. However, the opposition of six academic departments cannot be ignored. It is important to understand their concerns and reasons for condemning the idea of stocking these study guides. If the academic departments feel that the study guides will discourage students from reading the original works, or if they believe that the guides are not academically rigorous, their concerns should be taken into account. Ultimately, a decision should be made based on a careful consideration of all relevant factors, including the potential impact on student scholarships, the concerns of the academic departments, and the impact on the academic integrity of the institution. It may be beneficial to gather more information and hold discussions with both the bookstore head and the academic departments to come to a mutually beneficial solution.
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The top of the business cycle is known as thea. contractionb. troughc. expansiond. Peak
The top of the business cycle is known as the "peak." The "business cycle" is a term used to describe the fluctuations in economic activity that an economy experiences over a period of time. It consists of four main phases: expansion, peak, contraction, and trough.
During the expansion phase, the economy experiences growth in output, employment, and income. This phase can last for several years and is characterized by a general increase in economic activity. The peak is the highest point of the business cycle, where economic activity reaches its maximum level. At this point, the economy is operating at or near its full capacity. Following the peak, the economy enters the contraction phase, where economic activity starts to decline. This phase can be marked by a decrease in output, employment, and income. Eventually, the contraction phase leads to the trough, which is the lowest point of the business cycle. It is at this point that the economy starts to recover and begins a new expansion phase.
In summary, the top of the business cycle is referred to as the "peak," which is the point at which economic activity is at its highest level before entering a contraction phase.
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olanda buys a house in the mountains for $450,000 that she uses as her personal vacation home. she builds an additional room on the house for $40,000. she sells the property for $560,000 and pays $28,000 in commissions and $4,000 in legal fees in connection with the sale. what is the recognized gain or loss on the sale of the house?
The recognized gain is $528,000 - $490,000 = $38,000.
To calculate the recognized gain or loss on the sale of Olanda's personal vacation home, we need to consider the total cost of the house, including improvements, and the net proceeds from the sale.
The original cost of the house: $450,000
Additional room cost: $40,000
Total cost: $450,000 + $40,000 = $490,000
Sale price: $560,000
Commissions: $28,000
Legal fees: $4,000
Total expenses: $28,000 + $4,000 = $32,000
Net proceeds: $560,000 - $32,000 = $528,000
Recognized gain or loss = Net proceeds - Total cost
Recognized gain or loss = $528,000 - $490,000 = $38,000
Olanda has a recognized gain of $38,000 on the sale of her personal vacation home.
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1-Suppose that the benefit of a True Negative went up ten-fold(from$2 to $20). Now, at which threshold is the net profit higher?1-At threshold of 0.52-At threshold of 0.42-When the threshold forSuppose that a trained model produced the following confusion matrix at thresholds of 0.5 and 0.4: Threshold = 0.5 Predictions Predicted Predicted Positive Negative 100 50 Actuals Actual Positive Actu
1. True Negative (TN) - A test outcome where the model correctly predicts a negative result.
2. Threshold - The value at which the prediction is classified as positive or negative.
Given the information, the True Negative benefit increased from $2 to $20. We need to determine at which threshold (0.5 or 0.4) the net profit is higher.
matrix for both threshold values (0.5 and 0.4) including True Positives, False Positives, and also Negatives .False
2. question, we need to calculate the net profit for both thresholds and compare them. Let's assume that the cost of a False Positive and a False Negative is equal at $10 each, and the benefit of a True Positive is $50. Using the confusion matrix provided:
- Threshold = 0.5: True Positive = 80, False Positive = 20, False Negative = 20, True Negative = 80
Net Profit = (True Positive x Benefit) - (False Positive x Cost) - (False Negative x Cost)
Net Profit = (80 x $50) - (20 x $10) - (20 x $10)
Net Profit = $4000 - $200 - $200
Net Profit = $3600
- Threshold = 0.4: True Positive = 90, False Positive = 40, False Negative = 10, True Negative = 60
Net Profit = (True Positive x Benefit) - (False Positive x Cost) - (False Negative x Cost)
Net Profit = (90 x $50) - (40 x $10) - (10 x $10)
Net Profit = $4500 - $400 - $100
Net Profit = $4000
Based on these calculations, the net profit is higher at the threshold of 0.4. Therefore, it is more profitable to use a threshold of 0.4 for this model.
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A monopolist with MC =0 faces demand P = 6000 To eliminate the monopoly efficiency Loss with a per- unt subsidy will cost a total 9. dollar
To eliminate the monopoly efficiency loss, the government can provide a per-unit subsidy to the monopolist. Given that the monopolist has a marginal cost (MC) of 0 and faces demand (P) of 6000, the monopolist is currently charging a price that is above the marginal cost, resulting in a deadweight loss. By providing a subsidy, the government can incentivize the monopolist to lower their price and increase their output, which will lead to a more efficient allocation of resources.
The cost of the per-unit subsidy required to eliminate the monopoly efficiency loss is $9. This means that for every unit of output that the monopolist produces, the government will provide a subsidy of $9. For example, if the monopolist produces 100 units of output, the government will provide a total subsidy of $900 (100 x $9).
Overall, the per-unit subsidy can help improve market efficiency by reducing the monopoly's ability to distort the market and increasing the output of the monopolist, resulting in a more efficient allocation of resources.
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and are working for Agriculture and Agri-Food Canada. Your boss asks you to determine the impact of Korean tariff reductions on beef exported from Canada to Korea. Prior to the signing of CKFTA, the K orean tariff on imported beef from Canada was C$2.70 per kilogram. After CKFTA is fully implemented, the tariff will be eliminated by 2029. Based on research at the University of Guelph, you know the following supply and demand information for Canada and Korea (these supply and demand curves assume all other trade is held fixed): Canada Korea Demand QP - 1775 - 102*pc QP-528-20*PK Supply 09-593 +52*p 0-67 +24*PK Where Qºis demand in the respective country, Q is supply in the respective country, PC is the price of beef in Canada, and PK is the price of beef in Korea. To simplify the analysis, assume all prices are in Canadian dollars. You also know that the equilibrium with the initial tariff of C$2.70 per kilogram is as follows: Price of beef (C$/kg) Demand ('000 of tonnes) Supply ('000 of tonnes) Exports to Korea ('000 tonnes) Imports from Canada ('000 tonnes) Canada $7.74 989.81 993.29 3.49 Korea $10.44 320.04 316.55 3.49 Showing your work, answer the following questions. Note that these questions are designed to take you through calculating the new equilibrium prices, quantities supplied, quantities demanded, and trade under the CKFTA liberalization scenario (i.e, assuming the tariff falls to C$0.00 per kilogram) a. (3 marks) Derive Canada's excess supply curve b. (3 marks) Derive Korea's excess demand curve stated in terms of the price of beef in Korea C. (3 marks) Now solve for the equilibrium price of beef in Canada with the eliminated tariff d. (6 marks) Now solve for the equilibrium quantity demanded and supplied in Canada, and equilibrium quantity exported from Canada to Korea e. (2 marks) Now solve for the equilibrium price of beef in Korea f. (6 marks) Now solve for the equilibrium quantity demanded and supplied in Korea, and equilibrium quantity of beef imported from Canada
a. Canada’s Excess Supply = -1182 + 154PC, b. Korea’s Excess Demand = 461 - 44PK, c. Therefore, the equilibrium price of beef in Canada with the eliminated tariff is $13.24 per kilogram. d,e. Therefore, the equilibrium quantity exported from Canada to Korea is 1,061.88 tonnes. f. 72PK + 65.
a. Canada’s Free Trade Agreement excess supply is given by QS - QD, which is (593 + 52PC) - (1775 - 102PC). Simplifying this expression, we get:
Canada’s Excess Supply = -1182 + 154PC
b. Korea’s excess demand is given by QD - QS, which is (528 - 20PK) - (67 + 24PK). Simplifying this expression, we get:
Korea’s Excess Demand = 461 - 44PK
c. With the eliminated tariff, the price of beef in Canada will be equal to the price of beef in Korea. Therefore, setting PC = PK and solving for PC, we get:
7.74 + 0.102PC = 10.44 - 0.042PK
0.102PC + 0.042PK = 2.7
PC + PK = 26.47
Substituting PK = PC in the above equation, we get:
2PC = 26.47
PC = 13.24
Therefore, the equilibrium price of beef in Canada with the eliminated tariff is $13.24 per kilogram.
d. To solve for the equilibrium quantity demanded and supplied in Canada, we substitute PC = $13.24 in the demand and supply functions for Canada. This gives:
QD = 1775 - 102(13.24) = 569.48
QS = 593 + 52(13.24) = 1250.48
Therefore, the equilibrium quantity demanded and supplied in Canada is 569,480 tonnes and 1,250,480 tonnes, respectively. The equilibrium quantity exported from Canada to Korea is the difference between the quantity demanded by Korea and the quantity supplied by Canada at this price, which is:
Exports to Korea = QD(Korea) - QS(Canada) = (528 - 20PK) - (593 + 52PC) = (528 - 20PK) - (593 + 52PK) = -65 - 72PK
Substituting PK = $13.24, we get:
Exports to Korea = -65 - 72(13.24) = -1,061.88
Therefore, the equilibrium quantity exported from Canada to Korea is 1,061.88 tonnes.
e. With PC = PK = $13.24, we can use the demand and supply functions for Korea to find the equilibrium price of beef in Korea. This gives:
QD = 528 - 20PK = 528 - 20(13.24) = 265.6
QS = 67 + 24PK = 67 + 24(13.24) = 391.76
Therefore, the equilibrium price of beef in Korea is $13.24 per kilogram.
f. To solve for the equilibrium quantity demanded and supplied in Korea, we substitute PK = $13.24 in the demand and supply functions for Korea. This gives:
QD = 528 - 20(13.24) = 265.6
QS = 67 + 24(13.24) = 391.76
Therefore, the equilibrium quantity demanded and supplied in Korea is 265,600 tonnes and 391,760 tonnes, respectively. The equilibrium quantity of beef imported from Canada is the difference between the quantity supplied by Canada and the quantity demanded by Korea at this price, which is:
Imports from Canada = QS(Canada) - QD(Korea)
= (593 + 52PC) - (528 - 20PK)
= (593 + 52PK) - (528 - 20PK)
= 72PK + 65
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Correct Question:
The Canada-Korea Free Trade Agreement (CKFTA) is a bilateral trade agreement seeking to lower barriers to trade between Canada and South Korea. Prior to the signing of CKFTA, the Korean tariff on imported beef from Canada was C$2.70 per kilogram. After CKFTA is fully implemented, the tariff will be eliminated by 2029.
Based on research at the University of Guelph, you know the following supply and demand information for Canada and Korea (these supply and demand curves assume all other trade is held fixed):
Canada Korea
Demand QD = 1775 – 102*PC QD = 528 – 20*PK
Supply QS= 593 + 52*PC QS= 67 + 24*PK
Where QD is demand in the respective country, QS is supply in the respective country, PC is
the price of beef in Canada, and PK is the price of beef in Korea. To simplify the analysis,
assume all prices are in Canadian dollars.
You also know that the equilibrium with the initial tariff of C$2.70 per kilogram is as follows:
Canada Korea
Price of beef (C$/kg) $7.74 $10.44
Demand (‘000 of tonnes) 989.81 320.04
Supply (‘000 of tonnes) 993.29 316.55
Exports to Korea (‘000 tonnes) 3.49
Imports from Canada (‘000 tonnes) 3.49
Showing your work, answer the following questions. Note that these questions are designed to
take you through calculating the new equilibrium prices, quantities supplied, quantities
demanded, and trade under the CKFTA liberalization scenario (i.e. assuming the tariff falls to
C$0.00 per kilogram)
a. (3 marks) Derive Canada’s excess supply curve
b. (3 marks) Derive Korea’s excess demand curve stated in terms of the price of beef in Korea
c. (3 marks) Now solve for the equilibrium price of beef in Canada with the eliminated tariff
d. (6 marks) Now solve for the equilibrium quantity demanded and supplied in Canada, and equilibrium quantity exported from Canada to Korea
e. (2 marks) Now solve for the equilibrium price of beef in Korea
f. (6 marks) Now solve for the equilibrium quantity demanded and supplied in Korea, and equilibrium quantity of beef imported from Canada