Table A shows gross domestic product (GDP), disposable income (DY), consumer spending (C), and planned investment spending (IPlanned) in an economy. Assume there is no government or foreign sector in this economy.

Table A

Refer to Table A and fill the blank “A” by calculating planned aggregate spending (AE).

Suppose the U.S. has a closed economy with GDP (Y) equal to $19.4 trillion, consumption (C) equal to $12.4 trillion, government spending (G) equal to $3.4 trillion, transfer payments (TR) equal to $1.6 trillion, and taxes (T) equal to $4.7 trillion. Suppose the government increases its spending on national defense such that government spending increases by $0.2 trillion. What must happen to total savings (S)? That is, what is the dollar amount by which total savings changes? Assume the values for GDP, consumption, taxes, and transfer payments do not change.  Provide your answer in trillions of dollars rounded to one decimal place.

U.S. health care spending grew 3.6 percent in 2013, reaching $2.9 trillion or $9,255 per person. As a share of the nation's Gross Domestic Product, health spending accounted for 17.4 percent.

Using the above information and other information you will be directed to below, do the following:

Define the economic principle of opportunity cost.

Locate current GDP expenditures and express the percentages in a graph or a chart.  

Explain whether spending 17.4% of GDP is too much or too little to spend on healthcare.

Defend your position using the concept of opportunity cost and highlight specific GDP expenditures that are impacted by healthcare expenditure (opportunity cost).

2A.      Using the “Keynesian Cross” logic of Chapter 11, suppose that Government spending increases by $10. The marginal propensity to consume is 0.90. How much, overall, would incomes (Y) increase by? Explain your answer or show the equation(s) you used.

B.        How much would consumption spending and private (household) savings change by?

HINT—In part A, you found the change in Y. Combining the change in Y with the MPC might be useful.

C.        Suppose now that Investment spending increased by $10 instead. Again using the Keynesian Cross logic with an MPC of 0.90, how much would incomes (Y) rise by?

5. It is of interest to Starbucks on campus, the average spending of students in one week, this with the aim of creating a promotion for their students. It is said that they spend 163 pesos on average and it is known from experience that the standard deviation in spending is 52 pesos. a. What is the probability of a student on campus spending at least 180 pesos?

6. The following are the partial ratings of the group: 79, 87, 90, 74, 83, 72, 80, 56, 84, 83, 92, 70, 65, 69, 87, 88, 74, 72, 82, 91, 63. a. Draw up a basic frequency distribution table (1 pts.) b with the grades. Make a histogram

Despite the ongoing trade war, China is one of the U.S.’s most important trading partners. (Consider how many goods are “Made in China”). What might happen to the value of the U.S. dollar, the U.S. economy, and the trade relationship between the two countries if China was experiencing unusually high inflation?

Your response should be approximately 2-3 brief paragraphs.

What elements of risk are there in terms of sourcing and procuring goods from a Western source versus a low-cost country source such as Vietnam?

What type of relationship would be most appropriate with a high-risk/high-value supplier versus a low-risk/low-value supplier?

Does value for money versus price help make a more informed procurement decision

To what extent, and in what ways, do the functions of domestic middlemen differ from their foreign counterparts? What strategy might be employed to distribute goods effectively in the dichotomous small/large middlemen pattern which characterizes merchant middlemen in most countries? Discuss the economic implications of charging termination penalties or restricting the termination of middlemen. Do you foresee such restrictions in the United States?

Pool Accessories, Inc., has two divisions—Furniture and Supplies. Assume for both divisions that the tax rate is 30 percent, and the cost of capital is 8%. The following segmented financial information is for the most recent fiscal year ended December 31.

a)Prepare a segmented income statement using the format presented in Figure 11.3 "Segmented Income Statements (Game Products, Inc.)". Include the profit margin ratio for each division at the bottom of the segmented income statement.

b)Using net income as the measure, which division is most profitable? Explain why this conclusion might be misleading.

c)Using profit margin as the measure, which division is most profitable?

d)Using ROI as the measure, which division is most profitable?

e)Using RI as the measure, which division is most profitable?

f)Using EVA as the measure, which division is most profitable? For the EVA calculation, the only adjustment to be made to net income is to deduct taxes. No adjustments are required for assets.