2. In an economy with two sectors, what are the long-run effects of increased immigration on employment under free trade?

A) Employment will rise in one sector and fall in the other sector.

B) Wages will fall in both sectors.

C) Employment will rise in both sectors.

D) There will be no change in employment in either sector.

3. In 1994, the United States, Mexico and Canada created the largest free trade region in the world with the North American Free Trade Agreement (NAFTA). After renegotiating the NAFTA in 2017-2018, the three nations signed the Agreement between the United States of America, the United Mexican States, and Canada^{[1] (Links to an external site.)} (USMCA) on December 10, 2019, which is expected to take effect on July 1, 2020.

According to the Rybczynski theorem, how will immigration from Mexico to the United States affect the Mexican economy?

A) Wages of Mexican workers will increase.

B) Wages of Mexican workers will decrease.

C) Mexico's production of labor-intensive products will decrease.

D) Mexico's production of capital-intensive products will decrease.

4. Under free trade, when factors of production are mobile across sectors and labor immigrates, capital will:

A) become idled as owners of capital seek more profitable opportunities.

B) move to the labor-intensive sector until returns are again equalized.

C) remain fixed because capital is never mobile.

D) move to the capital-intensive sector.

5. According to the Rybczynski theorem, immigration will cause:

A) an increase in the output of the labor-intensive good and a decrease in the output of the capital-intensive good in the receiving country.

B) an increase in the output of both the labor-intensive and the capital-intensive goods in the receiving country.

C) a decrease in the output of both the labor-intensive and the capital-intensive good in the receiving country.

D) a decrease in the output of the labor-intensive good and an increase in the output of the capital-intensive good in the receiving country.

6. Under free trade, what is the overall long-run impact of immigration on the factor prices?

A) Both relative and absolute returns to factors of production will increase.

B) Returns to labor will increase and returns to capital will decrease.

C) Returns to labor and returns to capital will both increase.

D) Both relative and absolute returns to factors of production will not change.

a.) Suppose that government data show that 8% of adults are full‑time college students and that 30% of adults are age 55 or older. Complete the passage describing the relationship between the two aforementioned events. Although (0.08)⋅(0.30)=0.024, we cannot conclude that 2.4% of adults are college students 55 or older because the two events __________(are/are not) ________(independent/disjoint)

b.) In New York State's Quick Draw lottery, players choose between one and ten numbers that range from 11 to 80.80. A total of 2020winning numbers are randomly selected and displayed on a screen. If you choose a single number, your probability of selecting a winning number is 2080,2080, or 0.25.0.25. Suppose Lester plays the Quick Draw lottery 66 times. Each time, Lester only chooses a single number.

What is the probability that he loses all 66 of his lottery games? Please give your answer to three decimal places.

c.) Consider the sample space of all people living in the United States, and within that sample space, the following two events.

??=people who play tennis=people who are left‑handedA=people who play tennisB=people who are left‑handed

Suppose the following statements describe probabilities regarding these two events. Which of the statements describe conditional probabilities? Select all that apply:

-Two‑tenths of a percent of people living in the United States are left‑handed tennis players.

-Two percent of left‑handed people play tennis.

-Of people living in the United States, 3.7% play tennis.

-There is a 10.2% chance that a randomly chosen person is left‑handed.

-The probability is 5.4% that a tennis player is left‑handed.

-There is a 13.7% probability that a person is a tennis player or left‑handed.

d.)

Of all college degrees awarded in the United States, 50%50% are bachelor's degrees, 59%59% are earned by women, and 29%29% are bachelor's degrees earned by women. Let ?(?)P(B) represent the probability that a randomly selected college degree is a bachelor's degree, and let ?(?)P(W) represent the probability that a randomly selected college degree was earned by a woman.

What is the conditional probability that a degree is earned by a woman, given that the degree is a bachelor's degree? Please round your answer to the two decimal places.

Lynch was the loan officer at First Bank. Patterson applied to borrow $25,000. Bank policy required that Lynch obtain a loan guaranty from Patterson’s employer, a milk company. The manager of the milk company visited the bank and signed a guaranty on behalf of the company. The last paragraph of the guaranty stated, “This guaranty is signed by an officer having legal right to bind the company through authorization of the Board of Directors.” Should Lynch be satisfied with this guaranty? Would he be satisfied if the president of the milk company, who was also a director, affirmed that the manager had authority to sign the guaranty? Explain.

Ralph owned a retail meat market. Ralph’s agent Sam, without authority but purporting to act on Ralph’s behalf, borrowed $7,500 from Ted. Although he never received the money, Ralph repaid $700 of the alleged loan and promised to repay the rest. If Sam had no authority to make the loan, is Ralph liable? Why?

A guest arrived early one morning at the Hotel Ohio. Clemens, a person in the hotel office who appeared to be in charge, walked behind the counter, registered the guest, gave him a key, and took him to his room. The guest also checked valuables (a diamond pin and money) with Clemens, who signed a receipt on behalf of the hotel. Clemens in fact was a roomer at the hotel, not an employee, and had no authority to act on behalf of the hotel. When Clemens absconded with the valuables, the guest sued the hotel. Is the hotel liable? Why?

You have recently been promoted to General Manager at Creekview Lodge, a 50 room hotel in Gatlinburg, Tennessee. You started working at the lodge in high school in the restaurant and after college, returned to Creekview as one of the assistant managers before being promoted to hotel manager. Recently, a 200-room hotel opened not far from Creekview Lodge, and although Creekview still maintains near 100% capacity there has been quite a bit of turnover. More than ten employees left to work for the larger hotel which boasted higher pay and better health insurance.

You were informed this morning by the front desk team that the latest customer survey results show a drop in the satisfaction rating for guest room cleanliness. The current report indicates that 73% of guests responded “completely satisfied”, 12% responded “satisfied”, 10% responded “neither satisfied nor unsatisfied”, and 5% responded “unsatisfied.” The housekeeping staff lost four employees to the new hotel, so although disappointed, you aren’t surprised by this news. Still, you could not remember a time that the hotel had received such a low satisfaction rating.

As manager of Creekview Lodge, what is your next step in addressing the problem?

A)Take immediate action and require that all rooms be inspected by the hotel manager (you) or an assistant manager before being made available to customers

D)Review the standards of performance and compare to current performance

Section A – Hotel Business in Hong Kong Question A1 Answer the below short questions (a) to (i) according to A Statistical Review of Hong Kong Tourism 2018, published by Hong Kong Tourism Board in June 2019.

a) What is the total number of visitor arrival to Hong Kong upon 2018? How many visitors stayed overnight?

b) Identify Hong Kong’s top THREE source markets of visitors’ arrival to Hong Kong in 2018.

c) Which month contained the highest visitor arrivals number in 2018?

d) Briefly describe the hotel performance in 2018.

e) Which hotel category noted a highest gain percentage in room occupancy compare with 2017?

f) State TWO districts which recorded the highest room occupancy rate in Hong Kong.

g) In 2017, which department in the hotel earn the second highest revenue and what is the total percentage.

h) Refer to the hotel room occupancy rate and average achieved hotel room rate in 2018, illustrate TWO indicators or messages reflected from those figures.

i) The percentage distribution of visitor arrivals by months 2018 were quite steady along the year, the range of percentage starting from 7.2% to 10.1%. If you were the manager of a hotel, try to briefly explain the reasons behind of the distributions. (For example: What is/are the factor(s) may affect the percentage of arrival on Dec 2018.)

Integrative Exercise
Cost Behavior and Cost-Volume-Profit Analysis for Many Glacier Hotel

Using the High-Low Method to Estimate Variable and Fixed Costs

Located on Swiftcurrent Lake in Glacier National Park, Many Glacier Hotel was built in 1915 by the Great Northern Railway. In an effort to supplement its lodging revenue, the hotel decided in 20X1 to begin manufacturing and selling small wooden canoes decorated with symbols hand painted by Native Americans living near the park. Due to the great success of the canoes, the hotel began manufacturing and selling paddles as well in 20X3. Many hotel guests purchase a canoe and paddles for use in self-guided tours of Swiftcurrent Lake. Because production of the two products began in different years, the canoes and paddles are produced in separate production facilities and employ different laborers. Each canoe sells for $500, and each paddle sells for $50. A 20X3 fire destroyed the hotel’s accounting records. However, a new system put into place before the 20X4 season provides the following aggregated data for the hotel’s canoe and paddle manufacturing and marketing activities:

Required:

1. High-Low Cost Estimation Method

a. Use the high-low method to estimate the per-unit variable costs and total fixed costs for the canoe product line.

b. Use the high-low method to estimate the per-unit variable costs and total fixed costs for the paddle product line.

2. Cost-Volume-Profit Analysis, Single-Product Setting
Use CVP analysis to calculate the break-even point in units for

a. The canoe product line only (i.e., single-product setting)

b. The paddle product line only (i.e., single-product setting)

3. Cost-Volume-Profit Analysis, Multiple-Product Setting

The hotel's accounting system data show an average sales mix of approximately 300 canoes and 1,200 paddles each season. Significantly more paddles are sold relative to canoes because some inexperienced canoe guests accidentally break one or more paddles, while other guests purchase additional paddles as presents for friends and relatives. In addition, for this multiple-product CVP analysis, assume the existence of an additional $30,000 of common fixed costs for a customer service hotline used for both canoe and paddle customers. Use CVP analysis to calculate the break-even point in units for both the canoe and paddle product lines combined (i.e., the multiple-product setting).

4. Cost Classification

a. Classify the manufacturing costs, marketing costs, and customer service hotline costs either as production costs or period costs.

All manufacturing costs are costs. All marketing costs and customer hotline costs are costs

b. For the period costs, further classify them into either selling expenses or general and administrative expenses.

Marketing costs are selling oriented; therefore, the marketing period costs would be further classified as . Customer hotline costs relate to the customer service section of the value chain and would be further classified as .

5. Sensitivity Cost-Volume-Profit Analysis and Production Versus Period Costs, Multiple- Product Setting

If both the variable and fixed production costs (refer to your answer to Requirement 1) associated with the canoe product line increased by 5% (beyond the estimate from the high-low analysis), how many canoes and paddles would need to be sold in order to earn a target income of $96,000? Assume the same sales mix and additional fixed costs as in Requirement 3.

6. Margin of Safety

Calculate the hotel’s margin of safety (both in units and in sales dollars) for Many Glacier Hotel, assuming the same facts as in Requirement 3, and assuming that it sells 700 canoes and 2,500 paddles next year.
total MOS units above total BE units

$ MOS in sales dollars

Cost Behavior and Cost-Volume-Profit Analysis for Many Glacier Hotel

Using the High-Low Method to Estimate Variable and Fixed Costs

Located on Swiftcurrent Lake in Glacier National Park, Many Glacier Hotel was built in 1915 by the Great Northern Railway. In an effort to supplement its lodging revenue, the hotel decided in 20X1 to begin manufacturing and selling small wooden canoes decorated with symbols hand painted by Native Americans living near the park. Due to the great success of the canoes, the hotel began manufacturing and selling paddles as well in 20X3. Many hotel guests purchase a canoe and paddles for use in self-guided tours of Swiftcurrent Lake. Because production of the two products began in different years, the canoes and paddles are produced in separate production facilities and employ different laborers. Each canoe sells for $500, and each paddle sells for $50. A 20X3 fire destroyed the hotel’s accounting records. However, a new system put into place before the 20X4 season provides the following aggregated data for the hotel’s canoe and paddle manufacturing and marketing activities:

Required:

1. High-Low Cost Estimation Method

a. Use the high-low method to estimate the per-unit variable costs and total fixed costs for the canoe product line.

b. Use the high-low method to estimate the per-unit variable costs and total fixed costs for the paddle product line.

2. Cost-Volume-Profit Analysis, Single-Product Setting
Use CVP analysis to calculate the break-even point in units for

a. The canoe product line only (i.e., single-product setting)

b. The paddle product line only (i.e., single-product setting)

3. Cost-Volume-Profit Analysis, Multiple-Product Setting

The hotel's accounting system data show an average sales mix of approximately 300 canoes and 1,200 paddles each season. Significantly more paddles are sold relative to canoes because some inexperienced canoe guests accidentally break one or more paddles, while other guests purchase additional paddles as presents for friends and relatives. In addition, for this multiple-product CVP analysis, assume the existence of an additional $30,000 of common fixed costs for a customer service hotline used for both canoe and paddle customers. Use CVP analysis to calculate the break-even point in units for both the canoe and paddle product lines combined (i.e., the multiple-product setting).

4. Cost Classification

a. Classify the manufacturing costs, marketing costs, and customer service hotline costs either as production costs or period costs.

All manufacturing costs are product  costs. All marketing costs and customer hotline costs are period  costs

b. For the period costs, further classify them into either selling expenses or general and administrative expenses.

Marketing costs are selling oriented; therefore, the marketing period costs would be further classified as selling expenses . Customer hotline costs relate to the customer service section of the value chain and would be further classified as general and administrative expense .

5. Sensitivity Cost-Volume-Profit Analysis and Production Versus Period Costs, Multiple- Product Setting

If both the variable and fixed production costs (refer to your answer to Requirement 1) associated with the canoe product line increased by 5% (beyond the estimate from the high-low analysis), how many canoes and paddles would need to be sold in order to earn a target income of $96,000? Assume the same sales mix and additional fixed costs as in Requirement 3.

6. Margin of Safety

Calculate the hotel’s margin of safety (both in units and in sales dollars) for Many Glacier Hotel, assuming the same facts as in Requirement 3, and assuming that it sells 700 canoes and 2,500 paddles next year.
total MOS units above total BE units

$ MOS in sales dollars

(A) If the answer in (c) is greater than 0.01 then we conclude at the 1% significance
level that the average weight of a bear in Yellowstone National Park is different from 187 lb.

(B) If the answer in (c) is less than 0.01 then we cannot conclude at the 1% significance
level that the average weight of a bear in Yellowstone National Park is different from 187 lb.

(C) If the answer in (a) is greater than the answer in (b) then we cannot conclude at the 1% significance
level that the average weight of a bear in Yellowstone National Park is different from 187 lb.

(D) If the answer in (c) is less than 0.01 then we conclude at the 1% significance
level that the average weight of a bear in Yellowstone National Park is different from 187 lb.

(E) If the answer in (a) is greater than the answer in (c) then we cannot conclude at the 1% significance
level that the average weight of a bear in Yellowstone National Park is different from 187 lb.

(F) If the answer in (b) is greater than the answer in (c) then we cannot conclude at the 1% significance
level that the average weight of a bear in Yellowstone National Park is different from 187 lb.

(G) If the answer in (a) is greater than the answer in (c) then we conclude at the 1% significance
level that the average weight of a bear in Yellowstone National Park is different from 187 lb.

(H) If the answer in (b) is greater than the answer in (c) then we conclude at the 1% significance
level that the average weight of a bear in Yellowstone National Park is different from 187 lb.

Suppose that oil fouls the beaches along the Florida panhandle. Vacationers are the primary customers of the hotels along the panhandle. The oil _____ the price of a hotel room and _____ the quantity of hotel rooms rented