What public policy to further this revolution? As little as is prudent. As Adam Smith said, “it is the highest impertinence…in kings and ministers to pretend to watch over the economy of private people.” We certainly can tax ourselves to give a hand up to the poor. Smith himself gave to the poor with a liberal hand. The liberalism of a Christian, or for that matter of a Jew, Muslim or Hindu, recommends it. But note, too, that 95% of the enrichment of the poor since 1800 has come not from charity but from a more productive economy.

Rep. Thomas Massie, a Republican from Kentucky, had the right idea in what he said to Reason magazine last year: “When people ask, ‘Will our children be better off than we are?’ I reply, ‘Yes, but it’s not going to be due to the politicians, but the engineers.’ ”

I would supplement his remark. It will also come from the businessperson who buys low to sell high, the hairdresser who spots an opportunity for a new shop, the oil roughneck who moves to and from North Dakota with alacrity and all the other commoners who agree to the basic bourgeois deal: Let me seize an opportunity for economic betterment, tested in trade, and I’ll make us all rich.

What does Ms. McCloskey believe is responsible for the vast wealth in the U.S? Do you agree?

Do you believe your children will be better off than you are? Why are we so rich?3

Assume that you are deciding whether or not to acquire a four-year university degree in economics. Your only consideration at this moment is the degree as an investment for yourself. The direct costs per year are the tuition fees of $1,500 and purchases of books and other course material of $400. The government pays the university an amount equal to four times the amount of tuition fees to cover the cost per student. If you do not go to university, you will earn $20,000 per year as an acrobat during the first four years with a salary increase of 5% from the fifth year on. With a university degree, however, you know that you can earn $30,000 per year as a circus manager for the first four years after graduation with an annual increase of 6% thereafter. Because of the nature of the chosen occupation, your time horizon for the investment decision is exactly 10 years after graduating from university : that is, if the investment decision is to be worthwhile it must be so within a 10 year period. The market rate of interest rate is 5%. Would you make the investment in the degree?

Use either the present value or internal rate of return approach for your calculation

(Please provide detail step by step explanation to get to the right answer in the form of word)

An option on IBM has an exercise price of $160 and is selling for $8.00. IBM’s stock is currently selling for $165. Graph the payoff and profit/loss line for an individual who bought this call option. Label the axis and show the break-even point.

Men’s heights are normally distributed with a mean of 72 inches and a standard deviation of 3.1 inches. A social organization for short people has a requirement that men must be at most 66 inches tall. What percentages of men meet this requirement? Choose the correct answer:

A-2.62%

B-2.59%

C-2.56%

D-2.68%

Find the critical value of t for a sample size of 24 and a 95% confidence level. Choose the correct value from below:

A-2.096

B-2.064

C-2.046

D-2.069

Construct a confidence interval for the population mean using a t-distribution:

c = 99% m = 16.7 s = 3.2 n = 20. Choose from the intervals listed below.

A-(14.563, 18.474)

B-(14.664 18.736)

C-(14.653, 18.747)

D-(14.646, 18.763)

Assume that adults have IQ scores that are normally distributed, with a mean of 107 and a standard deviation of 15. Find the probability that a randomly selected individual has an IQ between 75 and 117. Choose the correct value:

A-0.7318

B-0.7155

C-0.7320

D-0.7167

In a survey, 376 out of 1,078 US adults said they drink at least 4 cups of coffee a day. Find a point estimate (P) for the population proportion of US adults who drink at least 4 cups of coffee a day, then construct a 99% confidence interval for the proportion of adults who drink at least 4 cups of coffee a day.

A-P=0.0374; (31.14%, 38.26%)

B-P=0.3488; (32.03%, 37.72%)

C-P=0.3488; (32.49%, 37.88%)

D-P=0.3488; (31.14%, 38.62%)

Your firm wants to investigate how much money the typical tourist will spend on their next visit to New York. How many tourists should be included in your sample if you want to be 90% confident that the sample mean is within $17 from the population mean? From previous studies, we know that the standard deviation is $70.

A-45

B-46

C-47

D-48

The mean rent of a 3-bedroom apartment in Orlando is $1200. You randomly select 12 apartments around town. The rents are normally distributed with a standard deviation of $300. What is the probability that the mean rent is more than $1100?

A-0.1827

B-0.8173

C-0.1251

D-0.8749

A study of women’s weights found that a randomly selected sample of 150 women had a mean weight of 147.3 lb. Assuming that the population standard deviation is 19.6 lb., construct a 95% confidence interval estimate of the mean weight of all women. Choose the correct interval from below:

A-(144.211, 150.389)

B-(140.611, 146.789)

C-(144.667, 149.933)

D-(144.163, 150.437)

A music industry researcher wants to estimate, with a 90% confidence level, the proportion of young urban people (ages 21 to 35 years) who go to at least 3 concerts a year. Previous studies show that 35% of those people (21 to 35 year olds) interviewed go to at least 3 concerts a year. The researcher wants to be accurate within 2% of the true proportion. Find the minimum sample size necessary.

A -2185

B-1539

C-2401

D-8740

2) Distinguish between earned and unearned income and provide three examples of each. Explain at least two differences that result from having earned income instead of unearned.

21. Finlandia Frankfurters (FF), incorporated in Finland, uses variable costing for external reporting. On 1st January, it is purchased by Belgian Bagels, which uses absorption costing, and FF is obliged to adopt the parent company's accounting method for the purposes of filing consolidated accounts. At the time of the merger, FF had 4,000 units in inventory and production costs remained stable over the following year. Which is true about FF's income in the first post-merger year? A. If sales are 10,000 units and production 12,000 units, variable costing income (VCI) exceeds full costing income (FCI) B. If sales are 10,000 units and production 10,000 units, FCI exceeds VCI C. If sales are 10,000 units and production 8,000 units, VCI exceeds FCI D. If sales are 12,000 units and production 10,000 units, FCI exceeds VCI E. Unable to determine.

A survey of Internet users reported that 22% downloaded music onto their computers. The filing of lawsuits by the recording industry may be a reason why this percent has decreased from the estimate of 30% from a survey taken two years before. Assume that the sample sizes are both 1431. Using a significance test, evaluate whether or not there has been a change in the percent of Internet users who download music. Provide all details for the test. (Round your value for z to two decimal places. Round your P-value to four decimal places.)

z =

P-value = 0 Correct:

Also report a 95% confidence interval for the difference in proportions. (Round your answers to four decimal places.) (_________,_________)

Explain what information is provided in the interval that is not in the significance test results.

The interval tells us there was a significant change in music downloads, but the test statistic is inconclusive.

The significance test does not indicate the direction of change, but the interval shows that the music downloads decreased.

The interval gives us an idea of how large the difference is between the first survey and the second survey.

The interval shows no significant change in music downloads. The interval does not provide any more information than the significance test would tell us.

Prompt In your email back to the client, you must address the critical elements listed below. The codes shown in brackets indicate the course outcome to which each critical element is aligned. When responding to your new clients’ email, make sure to address all of their questions and concerns. This will help support the critical elements below.

I. Identify what additional documents the clients need to provide in order for you to do their taxes. [ACC-330-01]

II. Identify applicable deductions and credits available for the clients. [ACC-330-01]

III. Differentiate types of income and expenditures. [ACC-330-01]

IV. Explain how you utilized the IRS website for staying current in the identification and application of appropriate tax codes and laws. [ACC-330-01]

EMAIL FROM CUSTOMER

From: Freida C. Butler To: Jane Doe, Accountant Cc: Daniel B. Butler Date: January 20, 2016 My name is Freida C. Butler, and my husband and I were referred to you by our good friend Jackie Lynn. We would like for you to prepare our tax return this year. My husband works for WJJJ, Inc. and I work at a real estate company, Corbin Realty. I am not considered a subcontractor for them. Many of my friends are contractors for them and receive a 1099, but I do not. I believe I receive a W2—does that sound like the right form? We have three children who live with us. They were each in school at some point this past year. So you need to know which of them were enrolled in school last year or for how long? Will I get any tax breaks for them being in school? We also had income from some investments. We received interest and dividends from a few places. Can you tell me if those are reported on a 1099 form? If so, I may have to request this from my bank. We own our home and paid the typical homeowner’s expenses. What expenses will you need from us relating to our home? Are there any other questions you have for us, such as other deductions we can take? Just curious: this tax "stuff" is so much information to remember. How do you ever stay on top of all of these tax rules? I have always wondered that! Are you the best in the business? I look forward to hearing from you. Please let us know what other information

1)

Yowell Company began operations on January 1, Year 1. During Year 1, the company engaged in the following cash transactions:

1. 1) issued stock for $70,000
2. 2) borrowed $40,000 from its bank
3. 3) provided consulting services for $69,000 cash
4. 4) paid back $30,000 of the bank loan
5. 5) paid rent expense for $16,500
6. 6) purchased equipment for $27,000 cash
7. 7) paid $4,500 dividends to stockholders
8. 8) paid employees' salaries of $36,000

What is Yowell's net cash flow from operating activities?

a) Inflow of $52,500

b) Inflow of $33,000

c) Inflow of $16,500

d) Inflow of $12,000

2)

Packard Company engaged in the following transactions during Year 1, its first year of operations. (Assume all transactions are cash transactions.)

1. Acquired $1,400 cash from the issue of common stock.
2. Borrowed $870 from a bank.
3. Earned $1,050 of revenues cash.
4. Paid expenses of $340.
5. Paid a $140 dividend.

During Year 2, Packard engaged in the following transactions. (Assume all transactions are cash transactions.)

1. Issued an additional $775 of common stock.
2. Repaid $535 of its debt to the bank.
3. Earned revenues of $1,200 cash.
4. Incurred expenses of $540.
5. Paid dividends of $190.

What is the amount of Packard Company's net cash flow from financing activities for Year 2?

a) Net outflow of $535.

b) Net inflow of $585.

c) Net inflow of $50.

d) Net outflow of $725.