1-The establishment of uniform accounting standards in the United States arose in response to the need to:

a*Return the trust within the market which had been lost due to false and incomplete information

b*Have all the companies that trade in the stock market

c*Ensure that all countries in the world use the same accounting standards

2. The main objective of making financial reports is

a*Determine if loans or other credit obligations can be paid on time

b*Keep personal records separate from business records

c*Provide relevant and reliable information for external users

3. Assets are reported in the balance sheet

a*Those that are more liquid first

b*Net of depreciation expense

c*Net in relation to long-term liabilities or realizable value

4. When presenting a Balance Sheet using GAAP:

a*Capital is presented before liabilities

b*Investments are presented after liabilities

c*Non-current accounts are presented after checking accounts

5. In which of the following situations an income must be recognized

a*When the merchandise is sent to a consignment shop

b*When the merchandise is sent to the CEO's bank who is currently in bankruptcy protection

c*Tax preparation services are delivered and payment must be made within 3 days

6. A series of equal periodic payments that begins more than one period after the payment agreement is called:

a*An expired annuity

b*An ordinary annuity

c*A future annuity

7. Calculate the cost of the equipment that would be reported in the balance sheet based on the following information:

Cost of equipment $ 100,000

Cost of equipment shipping costs $ 5,000

Electric cost of installing the equipment $ 2,000
Increase in the market value of the equipment from the day of purchase $ 3,000

a*$ 105,000

b*$ 107,000

c*$ 110,000

8. The gross profit method and the retail inventory method

a*Both are estimates of the final inventory and the cost of products sold

b*Both use the lowest cost or fair market value of the inventory in their calculations

c*Both use the present value of future cash flows.

9. The calculation of a simple interest for an investment of $ 100,000 at an interest of 6% for 5 years would be

a*Less than compound interest

b*The same amount under simple and compound interest rates, since the amount is less than $ 125,000

c*The same amount under simple and compound interest rates, since the amount is less than $ 155,000

10. When you prepare the current assets section of the balance sheet under GAAP you see that two of the balance sheets of the bank accounts are negative. Where would you look to determine how these balances should be reported?

a*Rules and procedures of the American Banking Association

b*FASB coding system

c*IFRS pronouncements since negative balances are currently passive

d*None of the above since the balance sheets should be grouped in the balance sheet

11. Which of the following is not one of the steps for the ethical decision analysis model:

a*Identify the consequences of each possible course of action

b*determine the facts within the situation.

c*Consult with the review board (ethics review board) of AICPA

11. Which of the following is not one of the steps for the ethical decision analysis model:

a*Identify the consequences of each possible course of action

b*determine the facts within the situation.

c*Consult with the review board (ethics review board) of AICPA

1. Describe how the money supply is measured in the United States and how banks, the public, and the Federal Reserve can influence it.
2. Explain what we want the Federal Reserve to be independent of, why that is important, and what parts of its structure help give it independence.
3. Explain the primary things the Fed can do to help the economy recover from a recession or slow down an expansion.
4. What is the difference between monetary and fiscal policy and what are they both trying to accomplish?
5. What can Congress do to help the economy recover from a recession? Explain the tools they would use and what they are expected to do, as well as reasons why it may not work as expected.
6. Explain the difference between a progressive, regressive, and proportional tax and provide an example of each.

People across the United States are fearful - and fed up- with crime. Dogs for protection, special locks, and security systems have never been more popular. And no wonder: Almost half of U.S. adults claim that they are afraid to walk alone at night in the vicinity of their own homes. Government spending on crime prevention has risen steadily during the past thirty years, but so has the crime rate. At the same time, as noted at the beginning of this chapter, violent crime has gone down in the last few years. New York City is a case in point: Murders in the Big Apple dropped from 2,245 in 1990 to 803 in 1997. Are we beginning to learn something more about controlling crime? Three factors seem to account for the New York turnaround. First, more police are on the streets than ever before. Second, a program of "community policing" makes police commanders directly responsible for controlling crime in their district. Third, and probably more important, police are less focused on making arrests and more concerned with preventing crime in the first place. For example, police officers have begun stopping young men for jaywalking or even spitting on the sidewalk in order to check them for concealed weapons (as a result the word is getting around that you risk arrest for carrying a gun) and even blocking off streets to traffic if that's what it takes to put local drug dealers out of business (the policy seems to work: the drug trade is down). Travis Hirschi (author of control theory) offers his own version of a community approach to crime. Hirschi notes that criminals today have two things in common. The first is age; most offenders are young. Crime rates are high in the late teens and early twenties, and they fall quickly thereafter. Second, most offenders take a short-term view of their lives. Lawbreakers, as Hirschi sees it, are people who have trouble working toward any long-term goal, including an educational degree, a career, a successful marriage, or even keeping a steady friendship. More than anything else, in fact, offenders are people characterized by low self-control. That is why, according to Hirschi, our present criminal justice system can never control crime effectively. For one thing, going to jail is too uncertain (most crimes go unpunished) and too far removed in time (catching, trying, and jailing criminals often takes a year or more) to deter the typical offender. Thus, Hirschi explains, popular calls for "stiffer sentences" actually have little effect in suppressing crime. Moreover, by the time many offenders are sent to prison, they are moving beyond the "crime years" simply because they are growing older. Statistically speaking, then, offenders aging in prison represent a crime threat already shrinking on its own. Therefore, rather than locking up adults, Hirschi argues that society needs to focus on younger people before they commit crimes. /similar to the new approach in New York City, Hirschi's approach calls for closer attention to teenagers - those at highest risk for criminal behavior. Effective crime control depends on devising policies to keep teens away not only from guns and drugs, but also alcohol and, if necessary, cars. Ultimately, though, the most effective way to control crime, Hirschi concludes, is to teach children self-control . This is a reasonability that falls upon parents. Government can help, however, by intervening in dysfunctional families and by developing strategies that help build strong-preferably two parent- families. Eliminating pregnancy among teenage girls would do far more to reduce crime, Hirschi contends, than all the actions of today's criminal justice system. QUESTIONS 1. Do you thing we need more prisons? Is that an effective way to deal with the crime problem? What else might be done? 2. Hirschi's recommendations are controversial because he opposes the popular practice of building more prisons. What do you thing? 3. If we don't lock up today's offenders swiftly and surely, how can we satisfy society's demand for retribution? 4. Do you think that New York City's new crime approach and Hirschi's suggestions attack the broader conditions that breed crime, such as poverty, racial prejudice, and weak families? Why or why not? 5. Does lethal injection illustrate the "medicalization of death"? How or how not? 6. Does lethal injection "sugar coat" capital punishment by making suffering less apparent? Is lethal injection more humane? Why or why not?

Which of the following statements regarding monetization is false?

The nation of Lower Volta announces that its exports exceed its imports. We would refer to this as a current account __________ that results in a financial __________.

Fiscal policy may be both procyclical and expansionary at the same time.

If citizens anticipate higher taxes in the wake of a fiscal stimulus, then the expenditure multiplier will be _________; and in the absence of accommodation by the Fed, the expenditure multiplier will be _________.

A variable, like the Fed’s discount rate, is an example of which of the following?

What percent of undergraduate enrollment in coed colleges and universities in the United States is male? A random sample of 50 such institutions give the following data (Source: USA Today College Guide).

For this problem, use five classes.

(a) Find the class width.

(b) Make a frequency table showing class limits, class boundaries, midpoints, frequencies, relative frequencies, and cumulative frequencies.

(c) Draw a histogram.

(d) Draw a relative-frequency histogram.

(e) Categorize the basic distribution shape.

(f) Draw an ogive.

Reporting on sustainability programs, policies and performance in the United States is presently voluntary. There appears to be two opposing views regarding voluntary sustainability reporting. One view is that voluntary sustainability reporting increases costs (communication and operational) and intensifies the likelihood that the reporting firm is greenwashing. A second view is that voluntary sustainability reporting demonstrates good corporate citizenship and environmental stewardship. Discuss whether or not an organization should adopt a proactive versus reactive stance to sustainability reporting.

4. Suppose you are named the new Secretary of Economy of the United States of America. You are interested in investing in a project with great returns to the economy, so you are advised to focus on early childhood education investments, since it is shown they increase productivity and earnings in the economy in the long run. In order to fulfill your project, you need to construct a new school in each county, using two factors of production: capital (K) and labor (L). Let the rental rate of capital ber and the wage bew. Output(a new school)(q)is produced according to the following production function: F(K,L) = (K1 4 +L1 4)4

(a) Are capital and labor complementary factors of production? Prove you answer. (2 points)

(b) Now, suppose the production function is: F(K,L) = K1 2L1 2

Does labor have a diminishing marginal product? Prove your answer. (2 points)

(c) Write down the cost minimization problem for the function specified in part (a). What are the optimal levels for capital and labor that minimize the cost of the program? What is the cost function? (8 points)

i. L(q) =

ii. K(q) =

iii. C(q) =

(d) Solve for the marginal cost function using your result from the previous part.

The mean cost of domestic airfares in the United States rose to an all-time high of $400 per ticket. Airfares were based on the total ticket value, which consisted of the price charges by the airlines plus any additional taxes and fees. Assume domestic airfares are normally distributed with a standard deviation of $120. Use Table 1 in Appendix B.

a. What is the probability that a domestic airfare is $555 or more (to 4 decimals)?

b. What is the probability that a domestic airfare is $250 or less (to 4 decimals)?

c. What if the probability that a domestic airfare is between $300 and $470 (to 4 decimals)?

d. What is the cost for the 4% highest domestic airfares? [(round to nearest dollar) (more or less)]

The Pew Research Center took a random sample of 2928 adults in the United States in September 2008. In this sample, 53% of 2928 people believed that reducing the spread of acquired immune sample deficiency disease (AIDS) and other infectious diseases was an important policy goal for the U.S. government.

1. If the significance level α=0.05, should we reject or fail to reject the null hypothesis? How would you interpret your results of hypothesis testing?        REJECT H_O      DO NOT REJECT H_O

INTERPRET:

2. Based on the above questions, what is the difference between confidence interval and hypothesis testing? When should we use confidence interval and when should we use hypothesis testing?

The United States, as it began its long and successful growth in the early 19th century, consciously promoted domestic production through such activities as tariffs, Clay's American System, and many direct subsidies to railroads, canal companies, farmers (free land) etc. Today we view this blatant example of large scale and extensive import-substitution industrialization as having been very successful. Comment fully on this statement.