1. Consider the following data, answer the question below:

Calculate Real GDP in 2012

2) Given the data below calculate Nominal GDP, Real GDP, and the GDP Deflator using 2010 as the base year.

                                                      2010               2011               2012              

Nominal GDP Calculation                    _______        _______        _______

Real GDP Calculation              _______        _______        _______

GDP Deflator Calculation

Gang members are getting older and the majority of them are now legal adults. Why is the happening, and how does this aging of gang members affect gang activity in general? Do you feel this trend will continue? Please explain

1. Identify areas of policy action and macroeconomic issues in relation to the aim and work of the CSME.

What would you strengthen in the CSME?

(10 pts) The city of New York is considering two separate cell tower providers. The city expects a benefit-cost ratio of 1.0 or better, and their cost of capital is 10% per year. Assume repeatability. Verizon AT&T Initial investment (first cost) $90,000 $170,000 Useful life in years 6 12 Market value at end of useful life $25,000 $40,500 Annual benefits from operation $30,000 $40,000 Annual operating expenses $9,800 $11,300 a. Conduct benefit-cost ratio on the Verizon and AT&T projects and indicate which project is the preferred project. b. Conduct an incremental difference to validate decision.

The M2 Corporation is considering expanding its ergonomics consulting business. To do so, several pieces of equipment for performing a given analysis technique must be purchased. The CEO estimates that it will cost $155,000 to expand the business, resulting in $31,000 in revenues per year, $12,000 in expenses per year, and a salvage value of $3000. If the useful life of the expansion is expected to be 15 years, and the Corporation’s MARR is 15%. a. Should they undertake the expansion? You must use the Benefit/Cost Ratio to receive ANY credit. b. What would the break-even point be for annual revenues for this problem?

Compare the role of the different perspectives of different nations or the international arena regarding the First Industrial Revolution in Britain.

In around 100 words explain how the free-rider problem arises in a currency union when a government raises the national debt in high levels

Is it more economical to purchase or rent a home? Evaluate the economics of renting versus buying a $150,000 home and living in it for five years. If your personal interest rate is 12% per year (compounded monthly), is it more economical to rent or purchase this home? Provide Present Worth analysis (show your work) to validate your decision. Use the data below in your analysis. Rental Option:

Rent is $1,200 per month for the first year and increases $3 per month. There is also a $1,200 deposit payable when the lease is signed and is refunded at the end of year 5. Renter’s insurance is $35 per month.

Purchase Option: A$30,000 down payment is made, so $120,000 will be financed with a 30-year mortgage having a 6% annual interest rate compounded monthly. Additional closing costs of $2,000 are paid at the time of purchase. Property taxes and homeowners’ insurance total $200 per month, and maintenance is $50 per month. You sell the house with a profit of $43,000 prior to commission paid. The commission you paid to the realtor at the time of the sale is expected to be 7% of the selling price of $160,000.

Explain, using an example if you consider it appropriate, what you understand
by the equivalent terms ‘recursive equations’ and ‘triangular system’. Can a
triangular system be validly estimated using OLS? Explain your answer

1. The Carrier company, based in Jupiter, Florida has the option of manufacturing air conditioners in one or more of three locations: Indianapolis, Indiana; Windsor, Ontario; or Monterrey, Mexico. Suppose that Carrier’s production workers in the three locations are perfect substitutes in the production of a fixed output: they do essentially the same job of assembling air conditioners from parts. The level of prevailing wages in the three locations, in order, is $20, $15, and $10 per hour. The hourly productivity of the workers in the three locations, in order, is $30, $25 and $14.
   1. How should Carrier allocate its production across these three locations?
   2. How would your answer change if, instead of working independently, the workers in the three locations were imperfect substitutes in the production of a fixed output? Provide examples of how the workers could be imperfect substitutes across locations.

2. Describe the ‘bang-per-buck’ rule for firms
   1. with a linear production function
   2. when inputs are imperfect substitutes in the production of a fixed output

3. Define the Marginal Rate of Substitution (MRS) between two inputs. Describe how it changes as we move along an isoquant in the following three cases: imperfect substitutes, perfect substitutes, and antagonistic inputs.

4. Define option value as it relates to hiring a new worker.

37 Which of the following items would be expected to have the lowest price elasticity of demand?

High deductible health plans have increased over the past few years. How are these different than the traditional health plans? As a consumer, which plan would you prefer and why?