The flywheel of a steam engine runs with a constant angular velocity of 180 rev/min. When steam is shut off, the friction of the bearings and of the air stops the wheel in 1.1 h. (a) What is the constant angular acceleration, in revolutions per minute-squared, of the wheel during the slowdown? (b) How many revolutions does the wheel make before stopping? (c) At the instant the flywheel is turning at 90.0 rev/min, what is the tangential component of the linear acceleration of a flywheel particle that is 29 cm from the axis of rotation? (d) What is the magnitude of the net linear acceleration of the particle in (c)?

The flywheel of a steam engine runs with a constant angular velocity of 140 rev/min. When steam is shut off, the friction of the bearings and of the air stops the wheel in 2.6 h. (a) What is the constant angular acceleration, in revolutions per minute-squared, of the wheel during the slowdown? (b) How many revolutions does the wheel make before stopping? (c) At the instant the flywheel is turning at 70.0 rev/min, what is the tangential component of the linear acceleration of a flywheel particle that is 46 cm from the axis of rotation? (d) What is the magnitude of the net linear acceleration of the particle in (c)?

1. Definition of economic costs

Yakov lives in New York City and runs a business that sells pianos. In an average year, he receives $851,000 from selling pianos. Of this sales revenue, he must pay the manufacturer a wholesale cost of $476,000; he also pays wages and utility bills totaling $281,000. He owns his showroom; if he chooses to rent it out, he will receive $71,000 in rent per year. Assume that the value of this showroom does not depreciate over the year. Also, if Yakov does not operate this piano business, he can work as an accountant, receive an annual salary of $34,000 with no additional monetary costs, and rent out his showroom at the $71,000 per year rate. No other costs are incurred in running this piano business.

Identify each of Yakov’s costs in the following table as either an implicit cost or an explicit cost of selling pianos.

1. When the government runs a budget? surplus, national saving ( increases / stays the same / decreases ).

2. The early and? mid-1980s were difficult times for U.S. exporters because ( small / large ) U.S. government budget deficits led to ( low / unchanged / high ) real interest rates and thus to ( a low / a high / an unchanged ) value of the? dollar, making U.S. goods ( more expensive / less expensive ) in other countries.

A Video store (AVS) runs a standard video stores. Before a video can be put on the shelf, it must be cataloged and entered into the video database. Every customer must have a valid a AVS customer card to rent a video. Customers rent videos for three days at a time. Every time a customer rent video, the system must ensure that he/she does not have any overdue videos. If so, the overdue videos must be returned and an overdue fee paid before customer can rent more videos, Likewise, if the customer has returned overdue videos but not paid the overdue fee, the fee must be paid before new videos can be rented. Every morning, the store manager prints a report that lists overdue videos. If a video is two or more days overdue, the manager calls the customer to remind him/her to return the video. If a video is returned in damaged condition, the manager removes it from the database.

1. Create a State Machine Diagram the above information

2. Choose two different senerios from the above situation and make a sequence diagram for each

a. Ahmed runs a small business. In the first year he charged $45 and sold 1200 units and in the second year he charged $30 and sold 1800 units. Calculate the price elasticity of demand (Use the midpoint method). If Ahmed plans to raise the price by 10%, indicate what would be a reasonable estimate of what will happen to the quantity demanded and to the total revenue?

b. The table below shows the change of the demand for good A when the price of good B increases from $450 to $540. Quantify the cross-price elasticity of the good A (use the mid-point method) and explain what does it show. Indicate if goods A and B complements or substitutes.

4. (15) Breach of Contract

            This question runs through the various concepts associated with breach of contract. Jack and Jill sign a contract whereby Jill must supply Jack with his fall line of clothing, which will be displayed in a fashion show whose date has already been set. Jack and Jill are both risk neutral and therefore base their decisions on their expected returns.

a) (3)   Suppose that breach of contract is forbidden, and Jack demands specific performance. The penalties will be severe if Jill does not meet the terms of the contract, so in the bad state she has to pay top dollar for a replacement seamstress on short notice. The table above lists the outcomes of this contract. Will Jack sign the contract? Will Jill sign the contract? Is it socially desirable that contract be fulfilled in the bad state?

b) (3)   Now suppose that breach of contract is permitted, with no penalties. In the bad state, Jill will breach and Jack will have to deal with the problem. He will decide to cancel the fashion show, at a loss to him of $5000. The table is therefore altered to the following:

Will Jack sign the contract? Will Jill sign the contract? Is it socially desirable that the contract be fulfilled in the bad state?

c) (3)   Suppose again that breach of contract is permitted, and that expectation damages are awarded in the event of breach. If Jill's gain from breaching is more than that Jack's loss, Jill will breach, and Jill must pay Jack enough to give him "the result he expected from her performance". The result he expected from her performance is that he get a surplus of $20,000. Thus, if she breaches Jill must pay Jack $25,000. The table is therefore altered to the following:

Will Jack sign the contract? Will Jill sign the contract? Will the contract be fulfilled in the bad state? Is it socially desirable that it be fulfilled in the bad state?

d) (3)   Suppose again that breach of contract is permitted, and that reliance damages are awarded. Under reliance damages, Jill must make Jack as well off as if the contract had never been signed. Jill must therefore pay Jack $5,000. The table is altered to the following:

Will Jack sign the contract? Will Jill sign the contract? Will the contract be fulfilled in the bad state? Is it socially desirable that it be fulfilled in the bad state?

e) (3)   Now modify the example slightly. Suppose that Jill had the option of training a back-up seamstress. If she had, this would have raised her costs by $6000 in the good state, but saved her $20,000 in the bad state if she does not breach. The original table is altered as follows:

If Jill had hired the back-up seamstress, would breach of contract have been socially desirable in the bad state? Would it have been socially desirable for Jill to hire the back-up seamstress (compare with d))? Under reliance damages, would Jill have hired the back-up seamstress?

Ken owns and runs a high quality Japanese restaurant in the central district of Kuala Lumpur. He has received a number of offers from potential buyers but is not sure of the price he wants to sell it for.

The value of the business including land and buildings which is worth $2.5 million and the value of restaurant and kitchen fittings is worth $700,000. However, Ken feels that his restaurant is worth more than this. He has many loyal and regular customers and more importantly, he has two excellent chefs who have won awards on Masterchef. Added to this, his waiters and waitresses are well trained and highly regarded. All these factors have contributed to the restaurant receiving glowing reports in the magazines and newspaper.

After many rounds of negotiations, Ken decides to sell his restaurant to Jasmine at $4 million, with an additional value of RM800,000 paid over its tangible assets.

By referring to the DEFINITION and RECOGNITION criteria of Assets outlined in the Conceptual framework, should this additional value of RM800,000 to be recorded in Jasmine’s balance sheet?

When the Government runs a budget deficit, it must sell Treasury bonds to finance that

deficit. To analyze the impact of increased government spending, assume the Treasury will

be selling new 1-year Treasury bills. Use a supply and demand for bonds model to

determine what is likely to happen to interest rates on 1-year bills. (Explain your graph)

The organisation that runs competitions for young musicians has had its business processes analysed by the business analyst, and the business analyst is now going to document them using Business Process Model and Notation (BPMN). One particular process is the daily administration. This occurs at the performance venue. There are several staff involved. One staff member is the Check-In Clerk, who sits at a table near the entrance door. When musicians arrive, they interact with the Check-In Clerk. Another staff member is the Announcer, who walks onto the stage introducing each musician as they are about to perform their music – they run the show. Another staff member is a Secretary who is a helper that walks between different places in the building.

You need to draw a BPMN diagram, including swimlanes, to represent the daily administration process, which involves these steps: 1. At the start of the day, the secretary prints off 2 copies of lists of musicians for all competitions for the day. 2. The secretary gives the lists to the Check-In Clerk 3. When musicians arrive, they report to the Check-In Clerk who asks them to give a photocopy of their music. 4. The Check-in Clerk notes the musician as arrived on both copies of the list of musicians for the relevant competition. 5. At the same time, the Check-in Clerk may receive a phone call from a musician who has to cancel. The Check-in Clerk notes the musician as cancelled on both copies of the list of musicians for the relevant competition. 6. When a list for a particular competition is fully resolved (all musicians are either arrived or cancelled), the Check-in Clerk gives the 2 copies of the list to the Secretary 7. The secretary gives one copy to the Judge, and one copy to the Announcer. 8. When a particular competition has finished, the Judge decides the placings (who to get first place, who to get second place, who to get third place), and writes this on the list of musicians and gives to the secretary. 9. The secretary returns the list to the Check-in desk, (so that people can view the placings).