1. The table below shows the prices and quantities of food items that the typical college student purchased from 2011 to 2014. What is the amount spent each year on the “basket” of food with the quantities shown in column 2?

Construct the price index for a “food basket” in each year using 2013 as the base year.

Compute the annual and overall inflation rate for food prices from 2011 to 2014.

This past summer, Victoria opened Victorian Walk and Run, a store that sells quality running/walking shoes and sneakers and sport clothes for serious walkers and runners.  The store is located in Cape May, NJ, the southern-most town in NJ.  Before Victorian Walk and Run opened, walkers and runners had to drive about 2 hours north to Blueberry, NJ, to get quality walking and running products at Donald’s Best Running Products.

Victoria has just discovered that the South Jersey representative for the premier athletic shoe company, Hercules, will not allow her shop to sell Hercules shoes because Donald’s Best Running Products has the exclusive rights to sell Hercules in Southern Jersey.  Donald’s best is also trying to snatch up exclusive rights to 2-3 of the other most popular athletic shoe brands.  Donald’s best will not work collaboratively with Victoria.

1. Think about the topics we discussed during our ethics class --business image, profit maximization, boycotts of businesses.  Should Victoria complain about Donald’s Best on her social media?  Should she try to get exclusive rights to Hercules shoes for the next selling season?  Or is there another approach she should take (this question is a thinking question, business ideas/marketing – hint think positive approaches over negative approaches).

2. How can Victoria get her employees to really read her Code of Conduct?

3. Victoria is interested in manufacturing a “French” sneaker she will call, “VOLANT” in her stores.  She can manufacture them in Guadeloupe, a French overseas region in the Caribbean.  When Victoria visits the Guadeloupe Government’s Business Office, she is told by a clerk (“off the record” that she will have to make a cash payment of $100 to her in order to speed up the import license proceeding.  Can Victoria legally make this payment?

4. Discuss a realistic Corporate Social Responsibility program for this very small business (she is a sole proprietor)

Read the following quote attributed to Sun Tzu:

“When the enemy is relaxed, make them toil. When full, starve them. When settled, make them move.”

In approximately 500 words, explain the meaning of these three sentences in terms of change and strategy.

3. (a) The income effect of a wage rate increase will labor supply, and the substitution effect of a wage rate increase will labor supply.

A. increase B. decrease C. not change

Therefore, the total effect of a wage rate increase on labor supply is .

A. positive B. negative C. ambiguous

(b) Increasing the overtime wage rate is often considered as an effective way to increase employees working time during a relatively short period, such as one week. Explain the reason using consumer choice tools, i.e., budget lines and indifference curves.

Survey a 3 of your peers/family members/coworkers about what features of a website they feel are most important when shopping online.

• Who are the people you interviewed and what are their demographics?
• What features did each of them list?
• How are these features similar to those you seek in a website when you purchase products online?

6. Team A and Team B are competing in the following game: There are 25 flags planted on the beach. On its turn a team may take 1, 2, 3, or 4 flags. The team that takes the last flag wins. Team A chooses first. You are the captain of Team B. Using backward induction, devise and explain a strategy that guarantees your team will win.

What is the difference between automatic stabilizers and discretionary fiscal policy?

1. Your firm produces in a competitive market which sells its product, q, for $240 per unit. Hourly variable costs are 20q² while overhead costs consist of $50 per hour to rent its office space, $50 per hour for advertising, $390 per hour for equipment rental and $10 per hour in attorney fees. All overhead costs are fixed but avoidable.

Question: Your firm wants to know its long term prospects. What will be the price and quantity charged in the market long run? Explain this result and then graph the AC, MC, MR, AR and firm supply curve.

Two business sell an identical product for P=20.

Business 1 uses a process with a cost curve of TC = 10000 + x.

Business 2 uses a process with a cost curve of TC = 2000 + 2x.

Which business is likely to have a higher DOL?

Select one:

a. Business 1, because it has a higher contribution margin and higher fixed costs

b. Business 1, because it has a lower contribution margin and lower fixed costs

c. Business 2, because it has a higher contribution margin and higher fixed costs

d. Business 2, because it has a lower contribution margin and lower fixed costs

Fill in the blanks to make the following statements correct.

a. In the long​ run, total output is determined only by ▼ (potential output or actual output). In the long​ run, aggregate demand determines the ▼ (price level or output level).

b. Permanent increases in real GDP are possible only if ▼ (potential output or actual output) is increasing.

c. Suppose illiteracy in Canada were​ eliminated, and the school dropout rate was reduced to zero. The effect would be a permanent▼(decrease or increase) in productivity and ▼ (a decrease or an increase) in potential output.

d. A reduction in corporate income tax is likely to make▼ (net exports or investment or consumption) more attractive and thus shift the ▼(aggregate supply or aggregate demand) curve to the right. The result is ▼(an increase or a decrease) in the​ short-run level of real GDP. In the long​ run, the greater rate of ▼ (net exports or consumption or investment) by firms will lead to a greater level of ▼(potential GDP or actual GDP).

2. Why is cost-minimization analysis most likely to be useful for managers? ( NO PLAGIARISM PLEASE , 200 WORDS ESSAY )

Why have economic analyses of clinical and administrative innovations become more important? ( NO PLAGIARISM PLEASE ; 150 WORDS ESSAY PLEASE)

2. Assume that Susan deposits $3000 of cash into bank A and the reserve requirement is 10%.

a. Complete a simple T-account for bank A showing this deposit and asume that bank A lends out its excess reserves to Bill.

b. Bill uses the entire loan to buy groceries at Rouses Supermarket and Rouses deposits it in bank B. Suppose bank B lends out all its excess reserves to Maria, and her loan ends up in bank C. Fill in the T-accounts for bank B and bank C.

c. Assuming that this chain reaction continues to happen until the money is exhausted, how much total deposits would have been created from Susan’s initial deposit?