The mean income per person in the United States is $45,000, and the distribution of incomes follows a normal distribution. A random sample of 17 residents of Wilmington, Delaware, had a mean of $55,000 with a standard deviation of $8,500. At the 0.100 level of significance, is that enough evidence to conclude that residents of Wilmington, Delaware, have more income than the national average? State the null hypothesis and the alternate hypothesis. State the decision rule for 0.100 significance level. (Round your answer to 3 decimal places.) Compute the value of the test statistic. (Round your answer to 2 decimal places.) Is there enough evidence to substantiate that residents of Wilmington, Delaware, have more income than the national average at the 0.100 significance level?

1. In the 1970s, the United States federal government created a Department of Energy. This is a time when the OPEC (Organization of Petroleum Exporting Countries) cartel first became prominent. Identify how this action might have impacted the three major macroeconomic goals of our economy.

2. Suppose you live in a community of 100 people where everyone is able and seeks to work. If 80 people are over 16 years old and 72 of them are employed, what is the unemployment rate in this community?

3. What are the three major types of unemployment? What are their causes?

4.  What is the business cycle? Explain the four phases of the business cycle.

5. Suppose a consumer buys 10 units of good X and 20 units of good Y every year. The following table lists the prices of goods X and Y in the years 2005-2007. Assume that these two goods constitute the typical market basket. Calculate the price indices for these years with 2005 as the base year. Comment on the inflation picture for these years.

According to the US Census Bureau, the Gini Coefficient in the United States was 0.397 in 1967, and 0.480 in 2014. The Gini coefficient is a measure of inequality that ranges from 0 to 1, where higher numbers indicate greater inequality. According to the World Bank, countries with Gini coefficients between 0.5 and 0.7 are characterized as highly unequal. Using the idea that Incentives Matter, analyze BOTH the pros of some income inequality and the cons of excessive income inequality.

Some income inequality can be good because of the " trickle down effect" and rewarding hard work and taking risks and investments.

The cons of excessive income inequality are unfair monopoloy, homelessness, and can easily lead to poverty.

Cabinaire Inc. is one of the largest manufacturers of office furniture in the United States. In Grand Rapids, Michigan, it assembles filing cabinets in an Assembly Department. Assume the following information for the Assembly Department: Direct labor per filing cabinet 20 minutes Supervisor salaries $135,000 per month Depreciation $16,000 per month Direct labor rate $18 per hour Prepare a flexible budget for 9,000, 11,000, and 14,000 filing cabinets for the month of August in the Assembly Department, similar to Exhibit 5. Assuming that inventories are not significant. Enter all amounts as positive numbers. CABINAIRE INC-ASSEMBLY DEPARTMENT Flexible Production Budget For the Month Ending August 31 (assumed data) Units of production 9,000 11,000 14,000 Variable cost: Direct labor $ $ $ Total variable cost $ $ $ Fixed cost: Supervisor salaries $ $ $ Depreciation Total fixed cost $ $ $ Total department cost

It appears that over the past 50 years, the number of farms in the United States declined while the average size of farms increased. The following data provided by the U.S. Department of Agriculture show five-year interval data for U.S. farms. Use these data to develop the equation of a regression line to predict the average size of a farm by the number of farms Discuss the slope and y-intercept of the model. Year Number of Farms (millions) Average Size (acres) 1950 5.70 209 1955 4.63 262 1960 3.91 296 1965 3.35 336 1970 2.95 374 1975 2.51 421 1980 2.45 425 1985 2.32 441 1990 2.15 459 1995 2.07 469 2000 2.17 433 2005 2.11 444 2010 2.19 420

The Statistical Abstract of the United States published by the U.S. Census Bureau reports that the average annual consumption of fresh fruit per person is 99.9 pounds. The standard deviation of fresh fruit consumption is about 30 pounds. Suppose a researcher took a random sample of 38 people and had them keep a record of the fresh fruit they ate for one year.

(Round all z values to 2 decimal places. Round your answers to 4 decimal places.)

a. What is the probability that the sample average would be less than 90 pounds?

p =

b. What is the probability that the sample average would be between 98 and 105 pounds?

p =

c. What is the probability that the sample average would be less than 112 pounds?

p =

Services account for the greatest proportion of the GDP of the United States. Consider the nature
of professional services (e.g. financial planning, legal, consulting, agencies, accountants, mechanics). Suppose
you had a friend that has a small financial planning business including a web page. If she/he were to ask you for
basic guidelines regarding search optimization and paid search ads (i.e. what you’ve learned in in the book
and during lecture), what would you recommend initially? What about the benefits of social media? Why
might networking with thought leaders in her/his community be important for her/his business as well?

The weights of newborn children in the United States vary according to the Normal distribution with mean 7.5 pounds and standard deviation 1.25 pounds. The government classifies a newborn as having low birth weight if the weight is less than 5.5 pounds. A study of learning in early childhood chooses an SRS of 3 children.

1. Is it okay to use normal calculations for this problem? Explain

2. Describe the sampling distribution.

3. What is the probability that the mean birth weight of an SRS of 3 children is less than 5.5 pounds? Draw and shade the appropriate normal curve and find the probability. You must find a z-score and write a conclusion in context.

3. It is sometimes said that a balance of trade deficit between the United States and other nations can be harmful to the economic wellbeing of America. Explain what is the “balance of trade.” What does a “trade deficit” or a “trade surplus” mean? Why do some people say a trade deficit is “bad” and a trade surplus is “good”?

Many economists reply to these arguments that, at the end of the day, it does no “harm” for a country to run a trade deficit, certainly it does not matter with any particular country, and nor does it matter when looking at the U.S. and all of its trading partners as a whole. Explain in detail the logic of their argument. After explaining these two point-of-view which do you think in more correct? Why?