David is a high school senior. He must decide whether to work or go to college. If he has a high school degree, he will make $20,000 per year. If he has a college degree, he will make $35,000 per year. To get a college degree, he must go to school for one period at a tuition cost of $10,000. Assume David lives for 3 periods and his discount is 0.1.

a) What is David’s direct cost of attending college? What is his opportunity cost? What will he decide to do?

b) Now, assume David can get a full-ride scholarship (thus H = 0). Now what will he do?

c) Since David is receiving a scholarship for his undergrad degree, he is now debating about going to grad school. If he decides to get his PhD, he must go to school in the first period (undergrad) at a cost of $0, and he must go to school in the second period (grad school) at a cost of $0. With a PhD, David can make $77,000 per year. Will David go to grad school? You only need to compare undergrad and grad school.

A guidance counselor wanted to see if she could predicted student’s GPAs in college. She decided to she collected the High School GPA, SAT Score, and if the student was involved in an extracurricular activity in High School of eight students and found out their GPA in their first year of college.

a.) Provide an equation that can be used to predict College GPA based on the 3 independent variables given above.

b.) Explain what the coefficient of the “Extra” variable means.

c.) What is the p-value of the overall model? Is the overall model significant at the ? = 0.05 level?

d.) List out and explain what the p-values for the individual variables mean.

e.) Were there any variables shown in part d that were not significant? If so remove them and give a new regression model. Is it better than in part a? Worse? Why? If it is better use this new one for the remaining problems. Use overall p-value, R2, individual variable p-values, etc to support your case.

f.) Suppose we wanted to make a prediction for the College GPA for a student who had a 3.2 high school GPA, scored a 1280 on her SATs, and participated in band. Use whichever model you decided was the best in part e. Also give a 95% prediction interval for your prediction for College GPA from the Excel output of whichever model you chose.

Currently in Latin America’s biggest economy, the number of unemployed persons in Brazil is around 11.9 million. The following are based on the data showing the state of the Brazilian economy in 2019-20: Unemployment rate = 11.2% Underemployment rate = 24.6% Real GDP growth rate = 0.5%

a. What is the ‘underutilisation rate’? Describe how the ‘underutilisation rate’ is a more effective measure of underemployment in the Brazilian economy than the ‘unemployment rate’.

b. Assume that a real GDP per capita growth rate of 3.5% and a natural unemployment rate of 6.0% correspond to the ‘bliss point’, i.e. the long run, full-employment GDP equilibrium in Brazil. Use a well-labelled AD/AS diagram to show the position of this economy in 2020. Explain how the government can use expansionary fiscal policy to move the economy back to the long run, full-employment GDP equilibrium. Draw the AD curve shift(s) associated with this policy on your diagram.

a case study with research

San Pico is a rapidly growing Latin American developing country. The country is blessed with miles of scenic beaches that have attracted tourists by the thousands in recent years to new resort hotels financed by joint ventures of San Pico businessmen and moneymen from the Middle East, Japan, and the United States. Additionally, San Pico has good natural harbors that are conducive for receiving imported merchandise from abroad and exporting merchandise produced in San Pico and other surrounding countries that lack access to the sea. Because of these advantages, many new businesses are being started in San Pico.

Presently, stock is traded in a cramped building in La Cobijio, the nation’s capital. Admittedly, the San Pico Stock Exchange system is rather archaic. Twice a day an official of the exchange will call out the name of each of the 43 companies whose stock trades on the exchange. Brokers wanting to buy or sell shares for their clients then attempt to make a trade with one another. This crowd trading system has worked well for over one hundred years, but the government desires to replace it with a new modern system that will allow greater and more frequent opportunities for trading in each company, and will allow for trading the shares of the many new start-up companies that are expected to trade in the secondary market. Additionally, the government administration is rapidly privatizing many state-owned businesses in an attempt to foster their efficiency, obtain foreign exchange from the sale, and convert the country to a more capitalist economy. The government believes that it could conduct this privatization faster and perhaps at more attractive prices if it had a modern stock exchange facility where the shares of the newly privatized companies will eventually trade.

You are an expert in the operation of secondary stock markets and have been retained as a consultant to the San Pico Stock Exchange to offer your expertise in modernizing the stock market.

Should they implement a modernized floor (outcry) and automated trading system such as the New York Stock Exchange? Provide an explanation as to how this would be feasible or not.

Would a system such as the NASDAQ be more beneficial considering the size of the country? Explain.

Explain the significant role played by the new exchange in facilitating capital market activity.

Explain why in its present state the exchange may or may not promote requisite liquidity and its significance.

Briefly discuss a regulatory framework needed to assure market integrity.

Discuss potential listing requirements.

How would the exchange serve as a barometer of economic activity?

Use python write a function that translates the input string into Pig Latin. The translation should be done word by word, where all words will be separated by only one space. You may assume that each word must have at least one vowel (a,e,i,o,u and uppercased counterparts), and there will be no punctuation or other special characters in the input string.

The Pig Latin rules are as follows:

1. For words that begin with consonants, all letters before the initial vowel are placed at the end of the word sequence. Then, “ay” is added.

Example: “pig” -> “igpay”, “banana” -> “ananabay”, “duck” -> “uckday”,

“stupid” -> “upidstay”, “floor” -> “oorflay”, “string” -> “ingstray”.

2. For words that begin with vowels, append “yay” to the end of this word.

Example: “omelet” -> “omeletyay”, “eat” -> “eatyay”, “egg” -> “eggyay”.

3. For whatever reason, we are afraid of 8-letter words. Thus, whenever you encounter a word with 8 letters, you should stop translating immediately and return what we have translated so far.

Example: “A short sentence” -> “Ayay ortshay”

• Hint: command in might be useful here

• Hint: either break or continue may be helpful here. Think which one

• Hint: the method enumerate() can be useful. A brief explanation and examples of its potential use can be found here.

def pig_latin(string):

    """

    >>> pig_latin('Hi how are you')

    'iHay owhay areyay ouyay'

    >>> pig_latin('Absolute')

    ''

    >>> pig_latin('When words begin with consonant clusters')

    'enWhay ordsway eginbay ithway onsonantcay'

    """

You are given the following data regarding a Latin American country currency=50 billion                                                                                                                       
demand deposits=100 billion                                                                                                       
bank reserves=20 billion                                                                                                                   
a. Define and calculate the following                                                                                           
monetary base                                                                                                                                     
money supply                                                                                                                                  
money multiplier                                                                                                                               
b. Suppose during the month of May country’s central bank gains international resererves by an amount equal 10 billion. Assuming Central Bank credit remains unchanged,
what will be impact the gain in international reserves on:monetary base, money supply                                                                        
c. The goverment wants to keep the money supply unchanged in spite of gain of reserves . what offeseting operation could it engage in?

1. You are given the following data regarding a Latin American country     currency=50 billion                                                                                                                        demand deposits=100 billion                                                                                                       
   bank reserves=20 billion                                                                                                                   
   a. Define and calculate the following                                                                                          
   -monetary base                                                                                                                                     
   -money supply                                                                                         
   -money multiplier                                                                                                                               
   b. Suppose during the month of May country’s central bank gains international resererves by an amount equal 10 billion. Assuming Central Bank credit remains unchanged, what will be impact the gain in international reserves on:monetary base, money supply                                                                           
   c. The goverment wants to keep the money supply unchanged in spite of gain of reserves . what offeseting operation could it engage in?