Between 1980 and 2014, income inequality in the United States has increased in part due to expanding international trade. How does expanding international trade contribute to income inequality?

Select one or more:

a. It allows producers to exploit workers and reduce the wages they are willing to pay workers.

b. It raises the cost of producing goods and therefore lowers the value of labor's services.

c. It increases the demand for a wide array of products which in turn increases prices beyond the reach of average-income individuals.

d. Domestic firms can now hire low-skilled workers anywhere in the world, putting U.S. workers in competition with foreign workers. This has caused the wages of unskilled workers to be depressed relative to the wages of other workers.

Please show your work

9.3.1

The income of males in each state of the United States, including the District of Columbia and Puerto Rico, are given in table #9.3.3, and the income of females is given in table #9.3.4 ("Median income of," 2013). Is there enough evidence to show that the mean income of males is more than of females? Test at the 1% level.

Table #9.3.3: Data of Income for Males

Table #9.3.4: Data of Income for Females

Diabetes affects approximately 25.8 million people in the United States, and is the 7th leading cause of death in the U.S. Go to American Diabetes Association website and take the risk test. Share at your comfort level. What did you learn? Based on your readings this week, what would you tell a loved one at risk seeking advice? Be sure to provide appropriate references so that others may weigh in on your example.

Between 2008 and 2013 the United States fell from 5^th to 10^th place in the Heritage Foundation’s World Ranking of Countries with the Most Economic Freedom. In 2017, Hong Kong, Singapore and New Zealand respectively hold the top 3 spots for being economically free and the U.S. ranks 17^th. Briefly explain why the U.S. has continued to decline in its respective world ranking.

1. You are given the following information about copper in the United States:

INCLUDE CALCULATIONS FOR THE FOLLOWING: (Please)

a. Calculate the loss to US consumers of copper from imposing the tariff.
b. Calculate the gain to US producers of copper from imposing the tariff.
c. Calculate the gain in tariff revenue to the US government from imposing the tariff.
d. Calculate the net gain or loss to the US economy as a whole from imposing the tariff.

Critics have charged that compensation to top managers in the United States is simply too high and should be cut back. For example, a recent Forbessurveys showing the 2012 annual compensation for the top 10 CEOs is attached. Are such amounts excessive? In answering this, it might be helpful to recognize that superstar athletes such as Peyton Manning, A-Rod, Tiger Woods or Lebron James, top entertainers such as Oprah Winfrey and Tom Hanks and many others at the top of their respective fields earn at least as much, if not a great deal more.

Forbes Rank of Top CEO Compensation - 2012

In the late 1980s, Carsten Richter, from Germany, migrated to the United States, where he is now a citizen. A man of many talents and deep foresight, he has built a large fleet of oceangoing oil tankers during his stay in the United States. Now a wealthy man in his 60s, he resides in Aspen, Colorado, with his second wife, Gabriela, age 50. They have two sons, one in junior high and one a high school freshman. For some time, Carsten has considered preparing a will to ensure that his estate will be properly distributed when he dies. A survey of his estate reveals the following:

The house and the Silver Mines International shares are held in joint tenancy with his wife, but all other property is in his name alone. He desires that there be a separate fund of $1 million for his sons’ education and that the balance of his estate be divided as follows: 40 percent to his sons, 40 percent to his wife, and 20 percent given to other relatives, friends, and charitable institutions. He has scheduled an appointment for drafting his will with his attorney and close friend, Forrest Gauthier. Carsten would like to appoint Forrest, who is 70 years old, and Carsten’s 40-year-old cousin, Heinrich Richter (a CPA), as co-executors. If one of them predeceases Carsten, he’d like First National Bank to serve as co-executor.

1. How does the age of Carsten’s children complicate the estate plan? What special provisions should he consider?

2. What options are available to Carsten if he decides later to change or revoke the will? Is it more difficult to change a living trust?

3. What duties will Forest Gauthier and Heinrich Richter have to perform as co-executors of Carsten’s estate? If a trust is created, what should Carsten consider in his selection of a trustee or co-trustees? Might Forrest and Henrich, serving together, be a good choice?

- The jobless claims in both the United States (US) and Europe have hit more than 30 million each due to Covid-19, which is expected to rise further in the coming weeks. This implies an unprecedented slowdown in two of the world's largest economies and thus a lower consumer demand.

How this rise in unemployment would affect the inflation and interest rates in these regions (US and Europe)? Provide the reasons for your answer .

- Oil prices have gone down significantly since the start of this year. Most of the developing markets that rely on imported oil can benefit from low oil import bill due to unprecedented decrease in oil prices.

How it would affect the currency exchange rates, inflation and interest rates in developing economies? Provide the reasons for your answer.

The Cold Mountain Furnace Company is a retail store with locations across the eastern United States. The company’s projected income statement for its first year of operations, which ends December 31, 2018, and its projected balance sheet as of December 31, 2018, are shown below:

The company is currently forecasting its 2019 operational year. Anticipated Projections for 2019 follow (continues onto next page):

All sales are made on credit. Sales are collected in two portions, consisting of 85% in the quarter of the sale and 15% in the quarter following the sale. All of the accounts receivable as of December 31, 2018, will relate to sales in the fourth quarter of 2018.

The cost of goods sold is expected to increase to 60% of sales in 2019. Inventory is purchased in the quarter of expected sale. 80% of inventory purchases are paid for in the quarter of purchase and 20% are paid for in the quarter following purchase. Safety stock is maintained at all times.

The accounts payable balance as of December 31, 2018, will relate to inventory purchases made in the fourth quarter of 2018.

Selling and administrative costs are expected to increase to $225,000 per quarter in 2019. Of this quarterly amount, $10,000 is depreciation expense of the property, plant, and equipment.

The inventory balance at the end of 2019 is expected to be $400,000.

Required:

Prepare the Cold Mountain Furnace Company’s projected Income Statement and Balance Sheet for each quarterly reporting period of 2019. In addition, prepare the company’s projected Income Statement and Statement of Cash Flows for the full year of 2019. Assume that the company is not subject to federal, state, or local income tax.

The United States Department of Agriculture (USDA) claims that the national average price for one gallon of whole milk is $3.49, and that the population standard deviation is $0.64. You believe that the USDA’s claim is not correct, so you select a simple random sample of 35 grocery stores nationwide and record the price of a gallon of whole milk. Your sample mean price for a gallon of whole milk was $3.27. Using a significance level of .05, does it appear that the USDA’s claim is correct? Conduct a complete and appropriate hypothesis test.

Step 1 (Hypotheses)

H₀:    (Click to select)   σ   s   n   p   π   μ   x-bar      (Click to select)   =   ≠   ≤   >   ≥   <    

H_A:    (Click to select)   μ   x-bar   π   p   σ   s   n      (Click to select)   =   ≠   ≤   >   ≥   <    

Step 2 (Decision rule)

Using only the appropriate statistical table in your textbook, the critical value for rejecting H₀ is   (Click to select)   +   -   ±   . (report your answer to 2 decimal places, using conventional rounding rules)

Step 3 (Test statistic)

Using the sample data, the calculated value of the test statistic is   (Click to select)   +   -   ±   . (report your answer to 2 decimal places, using conventional rounding rules)

Step 4 (Evaluate the null hypothesis)

Should the null hypothesis be rejected?    (Click to select)   yes   no    

Step 5 (Practical conclusion)

Should you conclude that the national average price for one gallon of whole milk is $3.49?   (Click to select)   yes   no    

Using only the appropriate statistical table in your textbook, what is the p-value of this hypothesis test?   

Answer: