1. The defining characteristic of long-run economic growth is
   1. the business cycle.
   2. rising productivity.
   3. steady increases in living standards for everyone each year.
   4. high rates of inflation.
2. The computation of the average annual growth rate of real GDP
   1. is the same for shorter periods of time as for longer periods of time.
   2. is computed by simply averaging the growth rate for each year, but only if we use a lot of years.
   3. is more complex when a long period of time is involved than when only a few years are included.
   4. involves computing the percentage change in real GDP between the first year and the last year for the period we are interested in.
3. Which of the following terms refers to the accumulated knowledge and skills that workers acquire from education and training, or from their life experiences?
   1. capital
   2. financial capital
   3. human capital
   4. physical capital
4. Which of the following will not cause an economy to grow in the long run?
   1. a more productive labor force
   2. increases in capital per hour worked
   3. a low minimum-wage rate
   4. technological change
5. Potential GDP is
   1. always greater than actual real GDP.
   2. always less than actual real GDP.
   3. sometimes greater, sometimes less, and sometimes equal to actual real GDP.
   4. the level of GDP that would be produced when firms are operating at maximum capacity.
6. Which of the following is a financial intermediary?
   1. a bank
   2. the White House
   3. a company that develops an Internet search engine
   4. a real estate brokerage
7. What happens when government spending is greater than government tax revenues?
   1. There is negative public saving.
   2. There is dissaving by government and the national debt rises.
   3. The government issues more new bonds than the old bonds it pays off.
   4. All of the above occur.
8. Fill in the blanks. The             the interest rate, the more investment projects firms can profitably undertake, and the                    the quantity of loanable funds they will demand.
   1. lower; greater

8. 2. lower; smaller
   3. higher; greater
   4. higher; smaller
9. As the economy nears the end of an expansion, which of the following occurs?
   1. Interest rates are usually rising.
   2. Wages are usually rising faster than prices.
   3. The profits of firms will be falling.
   4. All of the above occur.
10. Which types of goods are most likely to be affected by the business cycle?
    1. durable goods
    2. nondurable goods
    3. services
    4. goods purchased by the government
11. Fill in the blanks. Recessions cause the inflation rate to     , and they cause the unemployment rate to              .
    1. increase; increase
    2. increase; decrease
    3. decrease; decrease
    4. decrease; increase

Lahser Corp. produces component parts for durable medical equipment manufacturers. The controller is building a master budget for the first quarter of the upcoming calendar year. Selected information from the accounting records is presented next:

a. Accounts Receivable as of January 1 are $59,200. Selling price per unit is projected to remain stable at $11 per unit throughout the budget period. Sales for the first six months of the upcoming year are budgeted to be as follows:

b. Sales are 20% cash and 80% credit. All credit sales are collected in the month following the sale.

c. Lahser Corp. has a policy that states that each month’s ending inventory of finished goods should be 10% of the following month’s sales (in units).

d. Three pounds of direct material is needed per unit at $2.30 per pound. Ending inventory of direct materials should be 20% of next month’s production needs.

e. Monthly manufacturing overhead costs are $5,650 for factory rent, $2,900 for other fixed manufacturing costs, and $1.10 per unit produced for variable manufacturing overhead. All costs are paid in the month in which they are incurred.

4. What is the budgeted direct materials cost for the first quarter? (1 point)

Instalment loans require the periodic payment of principal and interest. In most cases, a customer borrows to purchase durable goods or cover extraordinary expenses and agrees to repay the loan in monthly instalments. Explain the following types of instalment loans in terms of their features and their risks:
5. 1. Credit cards
5. 2. Smart card
5. 3. Mortgage loans

A- The following details relate to ready meals that are prepared by a food processing company:

Required:

Show which ready meal is the most profitable for the company as per contribution per limiting factor? (Per minute). Comment on the results.                                                           

B-

AAACompany has estimated the following for the year 2019 for one of its products.

(i) Sales Estimations

(ii) Inventory estimations

• Beginning inventory for first quarter: 200 units
• The company desires to have an ending inventory each quarter equal to 30% of the next quarter’s sales.
• The first quarter’s sales for the following year 2020 is expected to be 1,700 units.

Required:

Prepare the Sales Budget andthe Production Budget for 2019.                                    

C-

The following information has been take from a manufacturing company for the year 2019:

Sales revenues 36,000 – opening inventory of materials 10,000 – closing inventory of materials 8,000 – opening inventory of finished goods 6,000 – closing inventory of finished goods 4,000 – cost of goods produced 26,000

Required: calculate Cost of goods sold and gross profit for the year ended December 31, 2019.             

Using the expenditure approach, calculate GDP using the following data.

Moriarity Company has budgeted the following unit sales: 1st Quarter 2019 7,000 2nd Quarter 2019 3,000 3rd Quarter 2019 4,000 Beginning finished goods for the first quarter was 1,400 units. The company's policy is to maintain an inventory of finished goods as 20% of the next quarter sales. The production budget for the SECOND quarter is __________. (no dollar signs, decimals or commas) HINT: you must calculate the first quarter in order to calculate the 2nd quarter.

On Wednesday, we had the following information:

• Sales projections for the next three quarters:
  • 1^st quarter           40,000 units
  • 2^nd quarter          60,000 units
  • 3^rd quarter           100,000 units

For Friday – add the following in order to do a production budget for the 1^st two quarters AND the total for the sixth month period:

• The Company desires an ending finished goods inventory (at the end of each quarter) equal to 25% of the budgeted sales for the next quarter.
• Beginning finished goods inventory for the first quarter equals 12,000 units.

Add the following to compute (you do not have to prepare a full budget) the # of pounds of raw materials needed to be purchased for the first quarter assuming:

• Each unit requires 10 pounds of material.
• The Company desires an ending raw materials inventory of 10% of the following quarter’s production needs.
• Beginning raw materials inventory in the first quarter is 40,000 pounds.

REQUIRED

1.            Prepare a production budget for the first two quarters, using the format below:

2.            Compute the number of pounds of raw materials to be purchased in the first quarter (you don’t need to prepare a formal budget, but show computations for your final result.

Over a bussiness cycle, why do the prices and output of durable-goods industries behave differently from those of nondurable-goods industries (Macroeconomics)

The marketing department of Jessi Corporation has submitted the following sales forecast for the upcoming fiscal year (all sales are on account):

The selling price of the company’s product is $17 per unit. Management expects to collect 65% of sales in the quarter in which the sales are made, 30% in the following quarter, and 5% of sales are expected to be uncollectible. The beginning balance of accounts receivable, all of which is expected to be collected in the first quarter, is $71,800.

The company expects to start the first quarter with 1,770 units in finished goods inventory. Management desires an ending finished goods inventory in each quarter equal to 15% of the next quarter’s budgeted sales. The desired ending finished goods inventory for the fourth quarter is 1,970 units.

Required:

1. Calculate the estimated sales for each quarter of the fiscal year and for the year as a whole.

2. Calculate the expected cash collections for each quarter of the fiscal year and for the year as a whole.

3. Calculate the required production in units of finished goods for each quarter of the fiscal year and for the year as a whole.