Finance Minister Eric Girard announced that the province will give up to $100 extra weekly to cashiers, grocery stockers, delivery people, and everyone who keeps the province running.

Girard said that the program is meant to ensure that those essential workers will earn more by working than by applying for the federal government's emergency benefits program (CERB), which provides Canadians struggling financially with $2,000 a month.

Using the logic of supply and demand, explain what is happening in the low-wage labour market that characterizes many of these essential services. Make sure your answer addresses the following question:

1. Explain what this policy does for the distribution of income, particularly on the wages of essential workers in low skilled sectors of the economy. How does this policy affect the incentives of employers and what might be the long-run implications of this policy?

Yasmin Jamieson is 18 years old and is about to graduate from an Ottawa high school. She must decide: which university will she attend in September? She wants to follow a 4-year undergraduate degree in Economics. Yasmin has been accepted to attend McMaster University in Ontario, Canada, and Stanford University, California, United States. She faces only one annual cost for the each of the four years she is in university: tuition. Annual tuition at McMaster is $15,000. At Stanford, annual tuition is $45,000. Assume that she is not considering the option of working after high school. Therefore, do not consider the foregone labour earnings when going to university. After graduation, Yasmin has a strong interest in Labour Economics and hopes to receive job offers from Capital Economics (near Hamilton, Canada) and from Insight Economics (near Stanford, USA).

She knows that these two companies offer different annual salaries depending on where one has graduated. Capital Economics will offer a McMaster graduate an annual salary of $128,000 and a Stanford graduate an annual salary of $160,000. Insight Economics will offer a McMaster graduate an annual salary of $175,000 and a Stanford graduate an annual salary of $250,000.

Let’s assume the following:

• Yasmin’s objective in her decision-making is to maximize the present value of net future income over her career (that is, income net of costs).

• She is certain to get job offers from both companies.

• Please ignore differences between these two cities in terms of income taxes, the exchange rate, the cost of living and moving costs.

• These annual salaries do not change for the duration of her expected career, from age 22 to 65. Hint: this time horizon is sufficiently long to use the present value (PV) approximation formula.

• However, the present value of annual tuition costs should be calculated using the expanded present value formula.

• The market interest rate is 5%. Which university would you recommend to Yasmin? Please show all your calculations and explain your recommendation. (20 points)

Assume there are two plots of vineyard land, X and Y. If X costs twice as much as Y and rents and discount rates are the same for each plot, the price difference can only be causes by different growth rates.
a) For both plots, provide an abstract equation for the growth rate g. Assume that plot Y’s price is NPV.

b) Based on your answer to (a), and assuming that the price-to-rent ratio for plot Y equals 12 and i=0.06 , what are the respective growth rates?

Lina, a Malaysian citizen, is planning to expand her business of exporting Tupperware into Japan.
Kenji, a Japanese citizen, is very interested to be the distributor for Lina’s good. After nearly one
week of negotiation, both of them had agreed for the goods to be delivered through maritime mode of
transportation.
However, Lina is worried about the payment method and the cost incurred by her if the goods were
damaged while in transit.

(a) discuss whether the use of bill of lading in the contract between Lina and Kenji will provide
the necessary protection for Lina. Support your answer with relevant cases.
(b) in your opinion, does Incoterms 2010 manage to solve problem in relation to the obligation
and the liabilities of seller and buyer in international business contract. Support your answer
with relevant laws.

ABC, Inc., is considering the purchase of a digital camera for the maintenance of design specifications by feeding digital pictures directly into an engineering workstation where computer-aided design files can be superimposed over the digital pictures. Differences between the two images can be noted, and corrections, as appropriate, can then be made by design engineers. The capital investment requirement is $350,000 and the estimated market value of the system after a six-year study period is $120,000. Annual revenues attributable to the new camera system will be $130,000, whereas additional annual expenses will be $25,000. You have been asked by management to determine the IRR of this project and to make a recommendation. The corporation’s MARR is 20% per year.

1. Solve first by using linear interpolation
2. and then by using a spreadsheet.

How does investment in capital goods and infrastructure contribute to economic growth?

How could the omission of net exports from GDP overstate production? Or understate it?

How will a sustained appreciation of the U.S. dollar over time likely affect U.S. net exports?

Assume that the United States raises tariffs on products imported from other countries. What effect will this U.S. trade policy have in the short run if other nations do not change their policy? What effect will this policy have in the long run if other nations retaliate?

What two solutions did Keynes suggest as appropriate government policies in order to close a recessionary gap? Does the assumption of stuck prices hold true when the economy moves close to its potential output? Explain.

How do high rates of inflation affect the acceptability of a nation’s currency?

ABC, Inc., is considering the purchase of a digital camera for the maintenance of design specifications by feeding digital pictures directly into an engineering workstation where computer-aided design files can be superimposed over the digital pictures. Differences between the two images can be noted, and corrections, as appropriate, can then be made by design engineers. The capital investment requirement is $350,000 and the estimated market value of the system after a six-year study period is $120,000. Annual revenues attributable to the new camera system will be $130,000, whereas additional annual expenses will be $25,000. You have been asked by management to determine the IRR of this project and to make a recommendation. The corporation’s MARR is 20% per year.

1. Solve first by using linear interpolation
2. And then by using a spreadsheet.

how does the government regulate the healthcare market place to protect the welfare of the public?

The current administration is offering the 2 trillion dollars stimulus package to maintain the loss due to the unprecedented chaos caused by the Coronavirus. (Let’s say this package can inject 4 trillion dollars into the economy this year while including the multipliers).

• What will be the unemployment rate during this summer? How about at the end of the year?

The US unemployment rate in March 2020 was 4.4%. It is expected to increase due to lockdowns and the fact that it will take some time for businesses, especially small ones, to recover. My estimation for the summer unemployment rate would be 5.5%.At the end of the year hopefully quite a lot of businesses would have recovered. My estimate for the end of year business rate would be 4%.

• Use GDP per capita in the US in 2019, calculate the total number of unemployed people because of the Coronavirus in 2020, and estimate the total loss in the economy, due to the unemployment.
• 2019 USA GDP per capita $65,111.6
• Total US labor force is ~165 million.
• The US unemployment rate in December 2019 was 3.6%. This has jumped to 4.4% now, an increase of .8%.
• .8%x165= 1.32 million
• Total loss in economy due to unemployment= 1.32mil x65111= 85.947 billion

If businesses lose 10 percent of their value by the end of this year (despite the stimulus package), what is the total loss in the economy because of that (use Wall Street Journal website to derive the total assets of the US companies)?

• American total assets for the quarter ending December 31, 2019 were $525.064B.
• A 10% loss from that is 52.5 billion

• What will be your estimation of the total GDP in 2020? Calculate the growth rate (from 2019 to 2020)

My estimation is that there will be contraction in US economy in first 2 quarters, and then slight expansion in the last 2 quarters. Total growth would be level, at best at .5%. So, total GDP in 2020

=GDP in 2019x1.005

=21.44x1.005= $21.5472 trillion

NEED ANSWERS TO THE FOLLOWING

• Based on your above calculations, roughly compute the saving rates in 2020 if the population growth rate would be 0.5 percent, depreciation rate 3 percent, and technological progress 1 percent (considering the current crisis). Explain the “ODD” result you get!

• Explain and calculate the total debt for the US at the end of 2020 (part of the debt is due to the stimulus package, and the other part is because of the reduction in government’s revenue from taxation).

• Who will pay this debt, and how will this debt show itself in the future of the US economy?

• Who is (actually) responsible for this substantial cumulative debt? Support your claim

Digital Business Analysis Report Review

How has digital business altered practices and procedures in marketing over the past 5-10 years?

(300 words)

The convergence theory states that:

Question 64 options:

Over the last several years, Canada has:

Question 65 options:

Complete the following sentence. Commodity-backed money is:

Question 66 options: