The U.S. Bureau of Labor Statistics released hourly wage figures for various countries for workers in the manufacturing sector. The hourly wage was $30.67 for Switzerland, $20.20 for Japan, and $23.82 for the U.S. Assume that in all three countries, the standard deviation of hourly labor rates is $3.00.

a. Suppose 36 manufacturing workers are selected randomly from across Switzerland and asked what their hourly wage is. What is the probability that the sample average will be between $30.00 and $31.00?
b. Suppose 37 manufacturing workers are selected randomly from across Japan. What is the probability that the sample average will exceed $21.00?
c. Suppose 48 manufacturing workers are selected randomly from across the United States. What is the probability that the sample average will be less than $22.80?

Assume you own a company that produces mountain bikes. Your company has manufactured mountain bikes locally in the United States for over 30 years. Because low-cost competition is increasingly gaining market share and your company costs are relatively high, you are considering outsourcing production to India.

1. Describe how differential analysis can be used to assist in making this type of make-or-buy decision. Include specific examples related to producing mountain bikes in your response.

2. What additional factors would you consider outside of the financial information analyzed with differential analysis? These are called qualitative factors in the text. Be sure to state why you would consider the qualitative factors included in your response.

1.

Deflation is:

Select one:

a. a reduction in the rate of inflation.

b. an increase in prices.

c. a decrease in prices; that is, a negative inflation rate.

d. an increase in the rate of inflation.

2.

Which of the following is true regarding the Federal Reserve

Select one:

a. It is charged with collecting taxes

b. It's board members are elected by the people living in the bank's district

c. They are a branch of the Federal Government under the U.S. treasury

d. The members of the Board of Governors are appointed by the President of the United States

3.

Which of the following would make fiscal policy more effective?

Select one:

a. If there were long time lags.

b. If there was a bigger spending multiplier

c. If there people who receive tax rebates save the money

d. If there was more crowding out

The U.S. Bureau of Labor Statistics released hourly wage figures for various countries for workers in the manufacturing sector. The hourly wage was $30.67 for Switzerland, $20.20 for Japan, and $23.82 for the U.S. Assume that in all three countries, the standard deviation of hourly labor rates is $3.00. a. Suppose 42 manufacturing workers are selected randomly from across Switzerland and asked what their hourly wage is. What is the probability that the sample average will be between $30.00 and $31.00? b. Suppose 33 manufacturing workers are selected randomly from across Japan. What is the probability that the sample average will exceed $21.00? c. Suppose 47 manufacturing workers are selected randomly from across the United States. What is the probability that the sample average will be less than $22.90?

2. Consider one of the many dilemmas faced by the U.S. Food and Drug Administration. A National Academy of Sciences report estimated that 60,000 women in the United States put their fetuses “at risk” of brain damage from mercury in the fish they ate. FDA scientists have warned that a woman should eat only one can of tuna per week, and that “The action levels we have in place are not protective enough for this—the fetuses.” Nonetheless, after meetings with the U.S. Tuna Foundation and other seafood industry representatives, the FDA decided only to suggest that pregnant women eat fish in moderation.

A. Which ethical theories would support this decision? Explain.

B. Should the environment be protected at any costs? Explain using your understanding of ethics and efficiency.

1. “The depreciation of the dollar from February 2009 to February 2014 had a positive effect on aggregate demand in the United States.” Is this statement true, false, or uncertain? Explain your answer.
2. Why are central banks so concerned with inflation expectations? Draw a graph that illustrates your answer in the short-run.
3. Suppose the public believes that a newly announced anti-inflation program will work and so lowers its expectation of future inflation. What will happen to aggregate output and the inflation rate in the short run? Draw a graph to illustrate your answer.
4. What happens to inflation and output in the short run and long run when government spending increases? Draw two graphs to illustrate your answer, one for the short run and one for the long run.

2. Suppose you are the manager of a California winery. How would you expect the following events to affect the price you receive for a bottle of wine? Explain your answers.

a. The price of a comparable French wine decreases.

b. One hundred new wineries open in California,

c. The unemployment rate in the United States decreases.

d. The price of cheese increases.

e. The price of a glass bottle increases significantly due to new government antishatter regulations.

f. Researchers discover a new wine-making technology that reduces production costs.

g. The price of wine vinegar, which is madde from the leftover grape mash, increases.

h. The average age of consumers increases, and older people drink less wine.

According to the New York Times (11/18/06) the number of car producers in China is increasing rapidly. The newspaper reports that “China has more car brands now than the United States.” But while car sales have climbed 38% in the first three quarters of the year, automakers have increased their output even faster, causing fierce competition and a slow erosion of prices.” At the same time, Chinese consumer incomes have risen. Assume that cars are a normal good. Use a diagram of the supply and demand curves from cars in China to show what is happening. Explain verbally, too. Label and describe shifts and directions of Q and P carefully.

Explain in 2 Paragraphs mininum. include diagram.

Assume you own a company that produces mountain bikes. Your company has manufactured mountain bikes locally in the United States for over 30 years. Because low cost competition is increasingly gaining market share and your company costs are relatively high, you are considering outsourcing production to China.

A. Describe how differential analysis can be used to assist in making this type of make-or-buy decision. Include specific examples related to producing mountain bikes in your response.

B. What additional factors would you consider outside of the financial information analyzed with differential analysis? These are called qualitative factors in the text. Be sure to state why you would consider the qualitative factors included in your response.