Montpelier, a small town in Ohio, earns $75 million and spends $46.5 million. If their income falls to $67 million, they will spend $41 million. Full employment is achieved when income is $79 million.

1. Calculate the average propensity to consume when Montpelier earns $75 million
2. Calculate the average propensity to save when Montpelier earns $75 million
3. Calculate the marginal propensity to consume when income falls from $75 million to $67 million
4. Calculate the spending multiplier for Montpelier
5. Is Montpelier in a recessionary or inflationary period?
6. If the government wants to change their spending level to get Montpelier to reach full employment, how much will they have to adjust their spending when Montpelier is earning $67 million

Do the following production functions have increasing, decreasing, or constant returns to scale? Which ones fail to satisfy the law of diminishing returns?

2. ? = min(??, ??)

3. ?=?₁^0.3 ?₂^0.3 ?^0.3

1- Using the BCG matrix, a product with low industry growth rate and a high relative market share would be called a:

cash cow

star

question mark

dog

2- in which stage of the product life cycle that features of the product are typically increasing?

Growth

Maturity

Introduction

Decline

A processing plant has a first cost of $700,000 and an expected life of 15 years with no salvage value. Money is borrowed at 5 percent compounded annually, and the first cost is paid off with 15 equal annual payments. The expected annual income is $200,000, and annual operating expenses are $40,000. Corporation income tax is 50 percent of the profits, and the SYD method of depreciation is applicable on the tax life of the facility, which is 11 years with no salvage value. Compute the income tax for (a) the first year and (b) the second year.
(Ans.. (a) $4167 (b) $10281.)

Tip:
The depreciation method SYD is described at page 41 in chapter 3
Tax is paid on the “real” annual profit (Incomes-Expenses-Interest- Depreciation)

Introduce urban development plan of Beijing, including fundamental development goals (societal, ecological, cultural, political, economic issues. )

Explain how significant is the rate of interest in explaining income determination (GDP and employment) within the Classics?

Explain the empirical framework for the Capital Asset Pricing Model. Discuss

its components and explain how an active portfolio manager can use a

performance ratio obtained from these components to evaluate the

performance of an active investment.

11- Which measure the Chinese leadership took in the post-Tiananmen episode of market reforms had the effect of improving the profitability of SOEs, establishing market based employer-employee relationship, and significantly degrading social security for the country’s urban population?

Robots in the factory and price rise for suppliers as Maleny Dairies invests

18- Find the 6 errors in the following text CHINA’S LOW WAGES Wages in China were low and remained low for a long period after market reforms began. One reason was the rapid increase in the working age population. Another reason was the Migrant Workers, people from rural areas that live in cities as second class citizens and work for low wages. They are moved to cities and ordered to work for low wages by the government. They form about 25 % of China’s nonagricultural work force. Since late 90’s real wages in China are increasing very fast. Today the wages in some parts of China are higher than in Turkey. One reason is changing population dynamics. The growth of China’s population has slowed down and population is expected to begin declining by the end of this century. China’s working age population is expected to begin declining around 2030. One reason is the One Child Policy initiated in the Mao era. To counter these changes the government has abolished One Child Policy and now allow couples to have as many children as they want. Government is also trying to encourage rural people employed in agriculture to move to cities and join the industrial work force. The percentage of the work force working in agriculture in China is higher than other countries at the same income levels, including Turkey. That is largely because agricultural production in China is done in very large scale in government farms called communes that are inefficient.

10- Two managers of a state owned enterprise in 1980’s China talking: “We will easily meet the production target assigned by the state planners of producing 50.000 tractors this year, using 80% of our production capacity. With the new regulations, we can produce motorcycles on the side… With demand high, supply low, and prices so high, we will make great profit…” What is the new regulations is he talking about related to?

Answer the question below Please in 150 - 200 words atleast

1. Explain how money evolved over the years?

5- A women, years ago in a village in China thinking before going to sleep: “Oh, I am so tired… I woke up at dawn, worked in the fields whole day, came back and worked in the village steel furnace at night… Good thing I don’t have to cook and care for the kids, the commune does that. We will catch up with England soon but will I be able to see it, working myself to death like this…” What is she living through?

13- Find the 3 errors in the following text:

A BUSINESS MEETING IN CHINA A group of managers from a multinational company planning an investment in the city of Wuhan are in a meeting with the city officials. The meeting has started with a short speech by the head of the Hubei city government while the Party Secretary of Wuhan taking notes attentively. As in every administrative unit in China, the main decision making body in Wuhan is the Party Standing Committee. However the local leadership cannot make many decisions without first asking the central government that has the power to hire, fire, and promote them. The head of the Wuhan Department of Commerce is appointed by Wuhan Party leadership. But he also says he cannot decide on anything without consulting Beijing.

Through the 2010 crisis, what do you think were the costs and benefits of staying in the euro zone for Greece?