1. You just won 100 million playing the lottery yesterday and you deposit 50 million in the local bank. Would you spending habits and the way you think about and select goods and service change compared to the way it was before you won lottery? what types of goods would you buy and in what quantities? why? Please explain it by some economic concept as much detail as possible.

Trevor Inc. manufactures model airplane kits and projects production at 150, 530, 300, and 750 kits for the next four quarters.

Manufacturing Information: Direct materials are 4 ounces of plastic per kit and the plastic costs $2 per ounce. Indirect materials are considered insignificant and are not included in the budgeting process. Beginning Raw Materials Inventory is 900 ounces, and the company desires to end each quarter with 30% of the materials needed for the next quarter's production. trevor desires a balance of 260 ounces in Raw Materials Inventory at the end of the fourth quarter. Each kit requires0.50hours of direct labor at an average cost of $30 per hour. Manufacturing overhead is allocated using direct labor hours as the allocation base. Variable overhead is $0.25 per-kit, and fixed overhead is $150 per quarter.

Prepare Trevor 's direct materials budget, direct labor budget, and manufacturing overhead budget for the year. Round the direct labor hours needed for production, budgeted overhead costs, and predetermined overhead allocation rate to two decimal places. Round other amounts to the nearest whole number.

Begin by preparing Trevor 's direct materials budget.

Prepare the direct labor budget. (Enter any hours as a decimal to two places, X.XX, and round all other amounts to the nearest whole number.)

Prepare the manufacturing overhead budget. (Enter all costs and hours as a decimal to two places, X.XX. Abbreviations used: VOH = variable manufacturing overhead; FOH = fixed manufacturing overhead.)

Australia's Sticky Unemployment Rate Underscores Reserve Bank of Australia (RBA)'s Monetary Policy
Challenge
Australia’s jobless rate held above 5% in May despite a surge in hiring, underscoring the Reserve Bank’s
challenge to drive down unemployment and stoke inflation.
RBA Governor Philip Lowe has made clear that easing monetary policy is not the ideal path to boosting hiring
and investment, and has urged the government to undertake structural reforms. The government is trying to
pass tax cuts that is estimated could stimulate the economy.
While the economy added 42,300 roles last month, new entrants were absorbed by a jobs market that
swelled to a record, the statistics bureau said in Sydney Thursday. That left the jobless rate at 5.2%, which is
well above the 4.5% level the RBA estimates is needed to revive price pressures.
The result was further diminished by most jobs being part-time and fewer hours worked, suggesting a less
robust labour market and likely explaining the currency rate decreasing. RBA Governor Philip Lowe resumed
cutting interest rates last week after a three-year hiatus as he bids to spur hiring and return inflation to
target.
Australia’s labour market has shown surprising resilience as hiring persisted despite weakness across much
of the economy. One explanation is that much of the hiring is coming from government-related programs
that are unrelated to prevailing economic conditions.
For much of the past year, Australia’s debt-laden households have cut spending as they grapple with
stagnant wages and watch falling house prices erode their wealth. Consumption accounts for almost 60% of
GDP and weaker spending has slowed economic growth.

Questions

1. Using a diagram, illustrate and describe Australia’s rate of inflation since 2000.

2. Using examples from the article, explain the following microeconomic concepts.

i. Diseconomies of scale

ii. Negative externalities

Australia's Sticky Unemployment Rate Underscores Reserve Bank of Australia (RBA)'s Monetary Policy
Challenge
Australia’s jobless rate held above 5% in May despite a surge in hiring, underscoring the Reserve Bank’s
challenge to drive down unemployment and stoke inflation.
RBA Governor Philip Lowe has made clear that easing monetary policy is not the ideal path to boosting hiring
and investment, and has urged the government to undertake structural reforms. The government is trying to
pass tax cuts that is estimated could stimulate the economy.
While the economy added 42,300 roles last month, new entrants were absorbed by a jobs market that
swelled to a record, the statistics bureau said in Sydney Thursday. That left the jobless rate at 5.2%, which is
well above the 4.5% level the RBA estimates is needed to revive price pressures.
The result was further diminished by most jobs being part-time and fewer hours worked, suggesting a less
robust labour market and likely explaining the currency rate decreasing. RBA Governor Philip Lowe resumed
cutting interest rates last week after a three-year hiatus as he bids to spur hiring and return inflation to
target.
Australia’s labour market has shown surprising resilience as hiring persisted despite weakness across much
of the economy. One explanation is that much of the hiring is coming from government-related programs
that are unrelated to prevailing economic conditions.
For much of the past year, Australia’s debt-laden households have cut spending as they grapple with
stagnant wages and watch falling house prices erode their wealth. Consumption accounts for almost 60% of
GDP and weaker spending has slowed economic growth.

Questions

1. Using a diagram, illustrate and describe Australia’s rate of inflation since 2000.

2. Using examples from the article, explain the following microeconomic concepts.

i. Diseconomies of scale

ii. Negative externalities

(Note: Morrisey & Brown, Ltd.’s Australian-formatted income statement has been recast into the format common in Canada. The Australian dollar is denoted by A$.)

Required:

1. Identify each of the company’s expenses (including cost of goods sold) as being variable, fixed, or mixed.

2-a. Using the high-low method, separate each mixed expense into variable and fixed elements.

2-b. Using the high-low method, state the cost formula for each mixed expense.

3. Redo the company's income statement at the 5,240-unit level of activity using the contribution format.

4. Assume that the company’s sales are projected to be 4,600 units in the next quarter. Prepare a contribution margin income statement.

) The Blue Ridge Company is preparing its 3rd Quarter budget. Its production budget show that the     

     required production in unit is:

               July              40,000

             August         50,000

               September    30,000

               October       20,000

Each unit of finished goods requires 3 lbs. of direct materials. Each pound of material cost $5.00 per lbs.

The company’s policy for ending inventory for direct materials is that the end-of-the-month inventory levels for

direct materials will be equal to seven percent of the next month’s production needs. The direct materials inventory

for the quarter has a beginning balance in units of 8,400 lbs. Please provide the direct materials budget for July,

August, September and the quarter. Show your work for full or for partial credit.

What is the ending inventory of direct material for July in lbs.?_____

You are evaluating a s project that develops AI cars. You dont have firm-level data,. For this project, you will need take a top-down valuation approach.
• The revenue of the transportation market is $50 billion dollars in the year of 2019. Its growth rate in 2020 is -5, in 2021 it is 3%, and goes 0%, 0%, 1%, 1%, 2%,2%,2%,2%,2% which ends in 2030.
• The current revenue share of the AI industry in the transportation market is 0%. The revenue share will rise in the year of 2025. It will then stabilize to 40% in the year of 2030.
• 10% is the discount rate in the industry

a. You use linear interpolation to estimate the AI car industry’s revenue share between 2025 to 2030. In 2024 the market share is 0; in 2030, the market share is 40%. From 2025 to 2030 (including 2025 and 2030), the increase in the revenue share relative to the previous year is a constant. What is the AI car industry’s market share as of 2029?
b. What is the AI car industry’s total revenue in 2030?
c. What is the present value of the AI car industry’s total revenue from 2020 to 2030? Discount all cash flows back to the year of 2019 (in billions $)?

You drop a package from a plane flying at constant speed in a straight line. Without air resistance, the package will. (Hint: think about the velocity along the x direction, think about what type of motion you have along x direction).

A) quickly lag behind the plane while falling.

B) remain vertically under the plane while falling.

C) move ahead of the plane while falling.

D) not fall at all.

Kyler Manufacturing produces​ self-watering planters for use in upscale retail establishments. Sales projections for the first five months of the upcoming year show the estimated unit sales of the planters each month to be as​ follows: LOADING...​(Click the icon to view additional​ information.)   Inventory at the start of the year was 750 planters. The desired inventory of planters at the end of each month should be equal to 25 % of the following​ month's budgeted sales. Each planter requires two pounds of polypropylene​ (a type of​ plastic). The company wants to have 20​% of the polypropylene required for next​ month's production on hand at the end of each month. The polypropylene costs $ 0.20 per pound. Read the requirementsLOADING.... Requirement 1. Prepare a production budget for each month in the first quarter of the​ year, including production in units for each month and for the quarter.

Number of planters to be sold

January. . . . . .

3,000

February. . . . .

3,200

March. . . . . . . .

3,100

April. . . . . . . . .

4,200

May. . . . . . . . .

4,000

Requirement 2. Prepare a direct materials budget for the polypropylene for each month in the first quarter of the​ year, including the pounds of polypropylene required and the total cost of the polypropylene to be purchased.

Start by preparing the direct materials budget through the total quantity​ needed, then complete the budget.

Enter any number in the edit fields and then click Check Answer.

Public choice theory concludes that most government departments as well as other non-profits tend to waste money because: