Over the past decade, many American candy companies, including Hershey Company, Brach’s Confections, and Ferrara Pan Candy, opened factories in Mexico and Canada to produce candy that is then shipped back to the United States for sale. Although lower wages in Mexico might explain part of this move, wages in Canada are comparable to U.S. wages.

Explain how U.S. price supports (price floors) for the sugar industry may have encouraged these moves.

The sugar industry is the longest protected in U.S. history. Many economists and industry experts argue that these protectionist policies hurt consumers and are no longer needed.

Do you agree? Why or why not? Use the concepts of supply and demand, and consumer and producer surplus to support your answer.

Explain why the U.S. sugar industry have experienced such long protectionist policies such as import quotas and subsidies?

What other countries might be likely candidates for adopting federal systems in the future? Why do you think these countries are particularly good candidates?

1. Using a dataset, the following equation was estimated:

   sat_hat = 1,028.10 + 21.30hsize - 5.19hsize^2 - 40.09female - 150.81black + 50.31 female x black

                         (6.29)    (3.83)    (.53)    (4.29)   (12.71)          (18.15)

   The variable sat is the combined SAT score; hsize is size of the student’s high school graduating class, in hundreds; female is a gender dummy variable; and black is a race dummy variable equal to one for blacks, and zero otherwise. What is the estimated difference in SAT score between black females and nonblack females?

   		100.5
   		120.2
   		140.6
   		160.3

1) which of the following doesn't come under conditions for considering direct exporting as a market entry strategy

a) company goals

b) size of company

c) resources

d) product or service

e) mission statement

2) some common market entry strategies for service firms depend on:

a) licensing agreement, franchise, agencies, and distributor

b) franchise, distributors, joint venture, and agent

c) the use of direct or indirect exports

d) all of the above

3) Research of an international market for a product is different from research undertaken for a service. which of the following, however, is common to both?

a) logistics and distribution

b) marking and labeling requirement

c) customer needs

d) the supply chain

4) which of the following falls under typical consumers level market forces for market research

a) income levels and occupation

b) age and education

c) sex and languages

d) all of the above

(Calculate with Excel only) Consider Carl, a 26-year-old San Diegan who has just graduated from SDSU with a B.A. in Economics. He has received two job offers, one in San Diego that pays him $40,000/year and another in Miami, Florida that will pay him $44,000/year. He is planning on working in the position, regardless of the location, until he finishes his 20th year of work. His added monetary costs in Miami will be $2,500 each year and he expects psychic costs totaling $5,000 each year for the first 5 years only. He can borrow/save at a rate of 6%. Using the information provided and assuming all costs and benefits are incurred/accrued at the end of each year determine the following: Calculate the net present value of his migration. Calculate the internal rate of return of his migration (round answer to a whole percent). Based on the NPV and IRR, should he migrate? Why? please show excel formula

1. What are the main macroeconomic and managerial factors that make the German market attractive to private investors? Please use theoretical concepts, key indicators

• What role do financial markets and institutions play in U.S economic growth? Identify the types of financial intermediaries in the US economy and the primary assets of these intermediaries. In your own personal and retirement savings which financial intermediaries do you use? What assets do you use to save?
• In module 3 you researched the expected inflation rate, discuss how the expected future inflation rate will affect the market of loanable funds.

1. 22 smokers were surveyed and they sleep an average of 7.3 hours per day. Suppose that the general public need an average of 7.5 hours of sleep each day and with a standard deviation of 0.5.

   (a) Test the hypothesis that there is statistically significant difference in sleep time between the smokers and general public at the 5% significance level. (b) Test the hypothesis that smokers need less sleep time than the general public at the 5% significance level. (Hint: For parts (a) and (b), you need to conduct single sample t tests. Please write down clearly the null and alternative hypotheses, carry out the tests and conclude.) (c.) Suppose now you want to do the same test in part (a) at the 10% significance level instead of 5% level. Would your conclusion in part (a) change?

Should the State of Illinois broaden the sales tax to cover services like auto repairs, accounting/legal services, haircuts and nail salon services, etc. What is the tax policy justification for such expansion? Please couch your answer based on tax policy principles.

Pick one contemporary trade theory (PRODUCT LIFE CYCLE THEORY, STRATEGIC TRADE THEORY, or DIAMOND THEORY – NATIONAL THEORY OF COMPETITIVE ADVANTAGE), define the theory. Tell me one industry that fits into this theory and why.  What is the difference between comparative advantage and absolute advantage?

The public choice model raises important questions about the effect of government regulation on economic efficiency. Can we conclude that the Congress should abolish agencies such as the Food and Drug Administration (FDA), the Environmental Protection Agency (EPA), and the Federal Trade Commission (FTC)?

What are the pros and cons of abolishing these agencies?

Question B1

Alex opened Supreme Chinese Seafood Restaurant (Supreme) in the housing estate in Tung Chung two years ago. As Supreme is the only restaurant selling seafood in the neighbourhood, it has enjoyed very profitable business since it opened despite the fact that its prices tend to be higher than similar products sold elsewhere.

Early this year, Supreme is facing very keen competition after another restaurant called Bravo selling seafood opened in the same housing estate. Most of Bravo’s seafood are priced almost the same as those of Supreme, except lobster is only HK$78 each which is lower than the cost and much lower than that of Supreme. During weekends, Bravo also offers “Set Dinner for Four” at a special price of HK$280. Therefore, a lot of loyal customers of Supreme have switched to Bravo. As a result, Supreme has suffered financial loss in the past few months.

1. (a) Identify the THREE types of pricing objectives. Then, justify which pricing objective was adopted by Supreme in the first two years. And, debate whether this pricing objective is appropriate for Supreme at that time.

2. (b) Justify the THREE pricing strategies used by Bravo.

3. (c) Discuss and justify whether Bravo may fall into ONE ethical issue on pricing.

1. Answer all of the following questions regarding the Money Supply and Reserves.
   1. Briefly explain, using arguments developed in the course, why the Fed does NOT have complete control over the money supply.
   2. Use the Market for Reserves framework to analyze each of the following scenarios. Treat each scenario separately (i.e. draw a separate fully-labeled graph for each in order to get full credit). Assume that the market is initially in equilibrium. Important: Make sure that your graphs clearly show changes in the equilibrium federal funds rate, changes in the equilibrium level of reserves, and any shifts in the demand or supply curves. Explain in one sentence what your graph is showing.
      1. Commercial banks decrease their demand for reserves.
      2. The Fed sells Treasury bills to commercial banks.