19. Flash Crash of May 6, 2010

Describe the flash crash of May 6, 2010, and explain why it caused so much concern among investors and regulators

2) A bank lends money to a firm on 01/01/2010. According to the lending agreement, the bank will receive the following payments:

06/30/2010 - $2,300,000

12/31/2010 - $1,300,000

06/30/2011 - $5,700,000

12/31/2011 - $3,400,000

06/30/2012 - $360,000

12/31/2012 - $560,000

If the annual interest rate on the loan is 3.80%, how much did the firm borrow?

4. Suppose you are interested in the impact of minimum wages on employment. You collect the following data on two jurisdictions:

5. Consider the same data on minimum wages and employment from the previous question. You’re going to use this data to check whether the two jurisdictions had different trends in employment before the 2010-2015 period. In particular, imagine that the increase in the minimum wage in jurisdiction 1 happened between 2005 and 2010, not between 2010 and 2015. Continue to assume that there is no change in the minimum wage in jurisdiction 2. The “before and after” approach using the 2005 and 2010 data, with the imagined change in the minimum wage during this period, would show:

a) none of the listed options.

b) a negative relationship between the change in the minimum wage and the change in employment.

c) no relationship between the change in the minimum wage and the change in employment.

d) a positive relationship between the change in the minimum wage and the change in employment.

A) Topic :

Elaborate the China-U.S. Trade War and the impact to China Business Environment as follows:

i) Briefly elaborate the trade practices and their effects which the current U.S. President, Donald J. Trump claims are unfair such as the growing trade deficit, the theft of intellectual property, and the forced transfer of American technology to China from 2010 to present.

ii) Analyze the outcomes of the China-U.S. Trade War and U.S.’s subsequent policies impacts to current China Business Environment in terms of Political, Economic, Social and Technological (PEST) aspects.

iii) In your opinion, how to deploy Porter’s Five Forces model to predict the Trade War impacts on the near future China Hi-Tech industries’ challenges and opportunities?

iv) If you are the CEO of a Hong Kong Hi-Tech Firm with extensive business cooperation with Chinese Hi-Tech partners, what strategies would you like to propose to the Board of Directors? And why?

1. An increase in saving that leads to more capital accumulation ________ labor productivity.

2. In 2010, of the following ________ had the highest real GDP per person.

3. Moving along the aggregate production function shows the relationship between ________, holding all else constant.

4. Greater labor force participation for households at higher real wage rate is one reason that

5. The supply of labor curve is

Exercise 9-24

Larkspur Company began operations on January 1, 2019, adopting the conventional retail inventory system. None of the company’s merchandise was marked down in 2019 and, because there was no beginning inventory, its ending inventory for 2019 of $37,700 would have been the same under either the conventional retail system or the LIFO retail system.

On December 31, 2020, the store management considers adopting the LIFO retail system and desires to know how the December 31, 2020, inventory would appear under both systems. All pertinent data regarding purchases, sales, markups, and markdowns are shown below. There has been no change in the price level.

Determine the cost of the 2020 ending inventory under both (a) the conventional retail method and (b) the LIFO retail method. (Round ratios for computational purposes to 2 decimal place, e.g. 78.72% and final answers to 0 decimal places, e.g. 28,987.)

Aida Jebat was hired as a clerk with Syarikat Manisan Sdn BHD on 1 July 2010 with a salary of RM1,200 per month. She was placed on six-month probation. On 1 October she informs the company that she is going on maternity leave. Her expected date of confinement is 1 December 2010, and she intends to commence her maternity leave on 1 November 2010. On 29 November 2010, she died from childbirth complications. The child was survived.

1. Is the company obliged to pay any maternity allowance? Explain your answer by relates to related act.

2. If yes, to whom, how many days and how much must the company pay?

in 2010, the Maricopa Community College District's enrollment data showed the following breakdown of students by ethnicity: 54.9% White; 21.1% Hispanic; 7.9% Black; 4.5% Asian/Pacific Islander; 2.9% Native American; 8.8% Other. Information was collected from a random sample 0f 300 students in 2017 to determine whether or not the data has changed significantly. The sample data is given in the table below. At the  α=0.05 level of significance, test the claim that the ethnic breakdown of students at MCCCD has not changed significantly since 2010.

Which would be correct hypotheses for this test?

• H0:The breakdown of students by ethnicity has changed significantly since 2010 (i.e. the given distribution no longer fits); H1:The breakdwon of students by ethnicity has not changed significantly since 2010 (i.e. the given distribution still fits)
• H0:The breakdown of students by ethnicity has not changed significantly since 2010 (i.e. the given distribution still fits);  H1:The breakdown of students by ethnicity has changed significantly since 2010 (i.e. the given distribution no longer fits)
• H0:μ1=μ2;H1:μ1≠μ2
• H0:p1=p2;2H1:p1≠p2

Ethnicity of students in sample:

Test Statistic:



Give the P-value:



Which is the correct result:

• Do not Reject the Null Hypothesis
• Reject the Null Hypothesis

Which would be the appropriate conclusion?

• There is enough evidence to suggest that the breakdown of students by ethnicity has changed significantly since 2010.
• There is not enough evidence to suggest that the breakdown of students by ethnicity has changed significantly since 2010.

Exercise 10-15         Deferred payment purchase

Cardinals Corporation purchased a computer on December 31, 2019, for $105,000, paying $30,000 down and agreeing to pay the balance in five equal installments of $15,000 payable each December 31 starting in 2020. An assumed interest rate of 10% is implicit in the purchase price.

Instructions: Prepare journal entries relating to the equipment and notes payable for all 5 years.