SHORT ANSWERS

a. How do we evaluate outcomes of economic systems? State the five performance criteria and briefly explain each.

b. Describe the feudalist economic system. What were its main characteristics? Why did it collapse?

c. Describe the EFO model. How does it work? What were the reasons for its implementation? What is its underlying purpose? Make sure you clearly explain how the mechanism works.

ESSAY TOPICS

A. Market failures are considered a weakness of the capitalist economic system. What are the four major market failures we have covered in class? Explain each in detail and give a brief example of how a government would remedy each particular market failure.

B. Describe the Japanese bubble economy in the 1980s. What caused it? What were the main characteristics of the bubble? Why did the bubble burst and what were the main consequences?

C. Describe the theoretical framework of socialism. How did socialists deal with the allocation of resources? How were prices established? What kind of information does a central planning board need to have for an efficient allocation of resources?

• While over the long run, the economy grows about 2 to 3% per year on average, over the shorter term, the economy goes through business cycles. Think about the growth rate of GDP, the inflation rate, and the unemployment rate over the last 4 quarters including the Covid-19 period until July. Once you’ve looked at the data, can you draw conclusions about the state of the economy? Would you describe the economy as booming, recovering, or in a recession? Why? Which curve do you think caused the change? Explain your reasoning.

• While over the long run, the economy grows about 2 to 3% per year on average, over the shorter term, the economy goes through business cycles. Think about the growth rate of GDP, the inflation rate, and the unemployment rate over the last 4 quarters including the Covid-19 period until July. Once you’ve looked at the data, can you draw conclusions about the state of the economy? Would you describe the economy as booming, recovering, or in a recession? Why? Which curve do you think caused the change? Explain your reasoning.

1. You are interested in whether people who exercise while tired feel better about their bodies than people who exercise while not tired. You also measure the body image evaluations of non-exercises (separately for tired vs. not tired participants). You do not think that non-exercisers differ in the perceived positivity of their body image depending on whether they are tired or not. You also think that exercisers may have better body images than non-exercisers.
   1. What kind of design would you use to analyze your data for the above example? (Use the correct notation). 4 points
   2. Draw the predictions outlined above, using a bar graph. Label all variables and levels. (8 points)
   3. Use the names of the variables from this example to explain what a main effect is. What are your predictions for each of the main effects? (4 points)
   4. Use the names of the variables from this example to explain what an interaction is. What is your prediction for the interaction? (4 points)

6. Why do you think the inside of a car feels so much warmer than its surroundings on sunny days? a. How can you use the sim to test your ideas? b. Describe your experiment and state some evidence that explain the different temperatures on a microscopic level using photons.

In your own words...

1. Explain the purpose and timing of “adjusting journal entries”.
2. Explain the purpose and timing of ‘closing journal entries”.
3. Explain each section of the classified balance sheet .
4. Explain the “current ratio” and the “debt to equity ratio”.
5. Explain the purpose of internal controls. Identify and explain 5 common internal controls that are used in business.
6. Explain the purpose and timing of the process of bank reconciliation.

(All answers were generated using 1,000 trials and native Excel functionality.)

The Iowa Energy are scheduled to play against the Maine Red Claws in an upcoming game in the National Basketball Association (NBA) G League. Because a player in the NBA G League is still developing his skills, the number of points he scores in a game can vary substantially. Assume that each player’s point production can be represented as an integer uniform random variable with the ranges provided in the following table:

Develop a spreadsheet model that simulates the points scored by each team and the difference in their point totals.

Rosanna owns 65% of the common shares of Rosanna’s Flowers Ltd. (RFL). Samantha owns 75% of the common shares of Riddled with Rain Investments Ltd. (RRIL). The other 25% of RRIL common shares are owned by unrelated persons. RRIL owns all of the common shares of Treading Water Ltd. (TWL). RRIL also owns the remaining 35% of the common shares of RFL. Rosanna is married to Samantha’s nephew, Sandro. The 35% ownership of RRIL in RFL was to provide RFL with some needed start-up financing. Samantha has no other involvement with RFL’s operations.

Required:

Explain, in detail, why the corporations involved in the preceding fact situation are associated or not associated. If they can be associated in more than one way, describe only one. Canadian Income Tax Law Section 256 (1)a

(10) Financial Statements

Give a basic explanation what each of the financial statements does and why it is important. Then pick one statement to go into detail about and share why you picked that statement.