7. Citizens in the United States buy televisions from Japan. To do so they use U.S. dollars to purchase Japanese yen. If Japanese citizens hold these U.S. dollars rather than spending them, what happens to Japan’s net exports and Japan’s net capital outflows?
A. both net exports and net capital outflow fall in Japan
B. both net exports and net capital outflow rise in Japan
C. net exports rise in Japan and net capital outflow falls in Japan
D. net exports fall in Japan and net capital outflow rises in Japan
E. net exports fall in Japan and net capital outflow remains the same in Japan

10. Which of the following statements is (are) correct?
(x) Net capital outflow is always less than net exports if the country has a trade deficit.
(y) If S = I + NCO, then I = S – NCO
(z) If saving is greater than domestic investment, then NCO is greater than net exports.
A. (x), (y) and (z)
B. (x) and (y) only
C. (x) and (z) only
D. (y) and (z) only
E. (y) only

16. In which of the following situations must national saving rise?
(x) Both domestic investment and net capital outflow increase.
(y) Domestic investment increases and net capital outflow decreases.
(z) Domestic investment is unchanged and net capital outflow increases.
A. (x), (y) and (z)
B. (x) and (y) only
C. (x) and (z) only
D. (y) and (z) only
E. (z) only

1. Consider two alternative reforms to the Disability Insurance (DI) system in the United States.

• Pay different DI benefits for different types of disabilities (e.g., you get 30% of benefits if you have an injured back and 50% of benefits if are paralyzed).
• Amplify the stigma associated with receipt of social insurance, by enforcing a requirement that individuals receiving DI have a sign that declares “Mooch on Society” planted on the recipient’s lawn.

1. Explain the rationale behind each proposal using the concepts of consumption smoothing and moral hazard.
2. Explain the downside of each proposal.

ABC Insurance Company insures properties along the Gulf Coast of the United States. Statutory reserves are liabilities that the insurance company is legally required to maintain on its balance sheet with respect to expected future claims against the company for insured losses. To assist ABC in setting its reserves, we are asked to provide actuarial guidance. Given that the historical average rate of occurrence of a major hurricane along the Gulf Coast is two per year, find the following:

1. The probability of 3 major hurricanes in a year.
2. The probability of at least 2 major hurricanes in a year.
3. The probability of less than 5 major hurricanes in five years.

(15.28) Almost all medical schools in the United States require students to take the Medical College Admission Test (MCAT). To estimate the mean score μ of those who took the MCAT on your campus, you will obtain the scores of an SRS of students. The scores follow a Normal distribution, and from published information you know that the standard deviation is 6.5. Suppose that (unknown to you) the mean score of those taking the MCAT on your campus is 24. In answering the following, use z-scores rounded to two decimal places. If you choose one student at random, what is the probability (±0.0001) that the student's score is between 20 and 30? You sample 27 students. What is the standard deviation (±0.01) of sampling distribution of their average score x¯¯¯? What is the probability (±0.0001) that the mean score of your sample is between 20 and 30?

Suppose the preliteracy scores of three-year-old students in the United States are normally distributed. Shelia, a preschool teacher, wants to estimate the mean score on preliteracy tests for the population of three-year-olds. She draws a simple random sample of 20 students from her class of three-year-olds and records their preliteracy scores (in points).

80,81,89,90,91,91,91,94,95,95,95,101,101,102,102,104,104,108,109,11180,81,89,90,91,91,91,94,95,95,95,101,101,102,102,104,104,108,109,111

Click to download the data in your preferred format.  

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Calculate the sample mean (?⎯⎯⎯x¯), sample standard deviation (?s), and standard error (SE) of the students' scores. Round your answers to four decimal places.

Determine the ?t-critical value (?t) and margin of error (?m) for a 90% confidence interval. Round your answers to three decimal places.

What are the lower and upper limits of a 90% confidence interval? Round your answers to three decimal places.

?⎯⎯⎯=x¯=

?=s=

?t =

SE=SE=

?m =

lower limit:

upper limit:

Which is the correct interpretation of the confidence interval?

There is a 90% chance that the population mean is between 93.350 points and 100.050 points.

Shelia is 90% confident that the true population mean is between 93.350 points and 100.050 points.

Shelia is 90% confident that the true population mean is between 95.513 points and 99.887 points.

Shelia is certain that the true population mean is between 93.350 points and 100.050 points.

There is a 90% chance that the true population mean is between 95.513 points and 99.887 points.

Q1. During the last decades, in the United States, union membership went down. Today, approximately________ % of workers of private companies are members of unions.

1. 29

2. 19

3. 11

4. 7

Q.2 Command-and-control regulations were able to reduce pollution; however, they have shortcomings. Which one of the following four answers represents one of these shortcomings?

1. They provide incentives for a firm to go beyond the pollution limits set by the government.

2. They specify how much pollution can be emitted.

3. They often have politically motivated loopholes.

4. They can specify what type of pollution-control technologies must be used.

Q3. According to economists, television programs are considered nonrival when

Group of answer choices

the market suffers from inefficiently low consumption.

more than one person can consume the same unit of the good at the same time.

individuals ignore the effect of their use on the amount of the resource remaining for others.

the supplier cannot prevent consumption by people who do not pay for it.

Q4. In a market economy cost-plus regulation causes a challenge to the regulators. One of the following answers best represents this difficulty. Which answers is that?

Group of answer choices

Producers have less reason to be concerned with high costs because they can pass them along to the consumer in the form of higher prices.

When a set-price declines slightly over time and the market changes dramatically, the firm can experience a great loss of revenue.

If a large firm is divided into smaller firms, the cost of production would increase and the economy would become less efficient as a whole.

The two firms may discover subtle ways of coordinating their behavior and keeping prices high.

10. The natural unemployment rate in the United States has varied over the last 50 years. According to the Congressional Budget Office, the natural rate was 5.5% in 1960, rose to about 6.5% in the 1970s, and had declined to about 4.8% by 2000. What do you think might have caused this variation?

11. Suppose the Fed begins carrying out an expansionary monetary policy in order to close a recessionary gap. Relate what happens during the next two phases of the inflation-unemployment cycle to the maxim “You can fool some of the people some of the time, but you can’t fool all of the people all of the time.”

Congratulations! You have been appointed an economic policy advisor to the United States. You are told that the economy is significantly below its potential output and that the following will happen next year: World income will fall significantly due to the pandemic, and the price of oil will fall significantly due to lack of economic activities, as well as the availability of alternative and more sustainable energy sources (wind, solar, hydro, nuclear), and the U.S. is an oil exporter, along with shale and natural gas.

a) What kind of policies (under Fiscal policy) might you suggest to the government? Mention three.

b) Consider the economic principle held by Classical economists: The economy always returns to its potential in the long run. What are Keynes’s criticisms of this economic principle?

What do you think about this?

Although the trade relationship between the United States and other countries has changed in the recent past, especially China, but in the past 50 years, with the popularity and development of the Internet and the birth of the World Trade Organization, it has greatly promoted and accelerated With the pace of world trade exchanges, the characteristics of various countries can also be transmitted and displayed to the world. With the continuous trade between countries, the friendly relations between countries have been strengthened, and international transactions have become easier.

The data below lists the population of the United States each year from 2000 until 2010. (Hint: see Chapter 7 Project Part 1) a. (4 points) Use EXCEL to make a scatter plot and find a linear model of your data. Let the horizontal axis represent the years after 2000 (the year 2000 would be 0) and let the vertical axis represent the US population in millions. Provide a title for your graph, label both the vertical and horizontal axes, and make sure the linear model is included on your graph. Copy the scatter plot with the linear model and paste it into your document. b. (3 points) Identify the slope and y-intercept of your linear model and explain what both of these values mean in the context of the data given labeling with correct units. Please use complete sentences. (hint: see last page of part 1 of the project). Year US Population in Millions 2000 282.16 2001 284.97 2002 287.62 2003 290.11 2004 292.81 2005 295.52 2006 298.38 2007 301.23 2008 304.09 2009 306.77 2010 309.3