A group of 10 people seek out an insurance company to underwrite health insurance for its members. The expected medical spending for this group is $50,000, or 5,000 per person on the average. An additional 10 people join the group who have expected medical spending of $10,000 per person on average. The premium (incorporating net loading costs of 5 percent) will be approximately

Assume the government wants to increase GDP and income Y. It has $100 million to use. Explain why spending it on roads and bridges (government spending G) will increase Y more or less than if it used the money on transfer payments (R) such as welfare payments. You must refer to the multiplier and mathematically why one policy would be different from the other. Explain why one policy would work better than the other.

d. You work for Mr. Elon Musk and he has asked you to explain how his company can determine its optimal level of R&D spending.
i.   Please explain the general concept of optimal level of R & D spending ii.   List and explain the marginal cost and marginal benefit components 1. You have a good list of items in the slide set — just need to provide explanations of the items.

1. What should be the role of government in the economy? (You may feel it should be less, more, or it could be just about right). Defend your position with a compelling economic argument.
2. Does government fiscal policy work (taxes, spending)? Why or why not?
3. Are there any fiscal policies (taxes, spending) that you support? Why or why not?
4. Thinking about supply & demand, is government intervention required to close the recessionary gap or the inflationary gap? Why or why not?

• Discuss the relationship between saving and consumption.
• In your discussion, distinguish between saving and savings.
• Consumer spending is directly affected by expectation of future income.
  • What events might change consumer confidence?
  • Discuss and provide examples of events that may change consumer confidence and therefore impact consumer spending.
    • Do your best to avoid posting duplicated information if possible.

Where appropriate, cite examples from your text or other readings.

Suppose you are a politician debating the merits of a policy change in entitlement spending that will lead to an increase in the projected budget deficit over many years.

            a) Give alternative perspectives on this deficit spending. Why might the deficits not be quite as bad as they seem? Why might they be worse?

            b) Suppose an economist points out that the policy change will increase “generational imbalance”. Describe what this means and the consequences for intergenerational equity          (i.e. is it fair to have a generational imbalance?)

In Chapter3 and also in the growth model where we studied about the long run, deficit spending( a higher government spending for a given tax rate) appears to have a negative effect on the economy but in the IS-LM model we can see that the opposite is true. A higher G increases the GDP by enhancing demand. Which one do you think is true? Can you reconcile these two ideas? What is your conclusion in terms of practical policy?

Meg's pension plan is an annuity with a guaranteed return of 4% per year (compounded quarterly). She would like to retire with a pension of $30,000 per quarter for 25 years. If she works 41 years before retiring, how much money must she and her employer deposit each quarter? (Round your answer to the nearest cent.)

Below is the Debtors ageing analysis of GOMA LTD as at the year ending 31/12/2018

GOMA LIMITED - DEBTORS AGE ANAYLSIS SHEET AS AT 31/12 2018

TOTAL                1,389,000       127,000             232,000         141,000           371,000       518,000

After a review of the Debtors Ageing Analysis it was agreed as follows

1. 2 years and above
2. a) 50% of balances falling in the above period of the undermentioned debtors should be written of

NNM LTD

RPTY LTD

YOU LTD

NOMAN LTD

CMMT LTD

1. b) 100% of balances falling in the above period of the undermentioned debtors should be written of

GOMT LTD

WOGAN LTD

1. More than 1yr Less than 2 yrs

20% of balances falling in the above period of the undermentioned debtors should be written off.

JJMT LTD

POMOTY LTD

NANCY LTD

1. More than 3mths, less than 6 mths

Due to some defect in some goods sold the following balances are to be written off

VAEG LTD GH₵10,000

KOMA LTD GH₵2,000

1. Specific provisions should be made on the following balances

RATMAN LTD            GH₵2,000

RANCH LTD              GH₵2,000

ADANSE LTD            GH₵3,000

1. A 10% general provision should be made on all outstanding balances
2. Balance on the provision for Bad Debts Account as at 1/1/2018 was GH₵ 80,000

Required

1) Adjust and Prepare the Debtors Ageing analysis Sheet and determine

i) Total balance for 2 years and above

ii) Total balance on More than 1yr Less than 2 yrs

iii) Total balance on 6 months to1yr  

iv) Total balance on More than 3mths, less than 6 mths

2) Determine the Bad Debt to be charged to the Profit and Loss Account

3) Determine the Provision for Bad Debts to be charged to the Profit and Loss Account

4) Prepare the Balance Sheet Extracts for Debtors and Provision for Bad Debts under Current Assets as at 31/12/2018.

A marketing researcher wants to estimate the mean amount spent​ ($) on a certain retail website by members of the​ website's premium program. A random sample of 92 members of the​ website's premium program who recently made a purchase on the website yielded a mean of ​$1400 and a standard deviation of ​$200. Complete parts​ (a) and​ (b) below.

A. Construct a 99​% confidence interval estimate for the mean spending for all shoppers who are members of the​ website's premium program.

____≤μ≤_____

​(Round to two decimal places as​ needed.)

b. Interpret the interval constructed in​ (a).

Choose the correct answer below.

A.With 99​% ​confidence, the mean spending in dollars for all shoppers who are members of the​ website's premium program is between the lower and upper limits of the confidence interval.

B.There is a 99​% probability that mean spending in dollars for all shoppers who are members of the​ website's premium program is between the lower and upper limits of the confidence interval.

C. 99​% of all shoppers who are members of the​ website's premium program have spent an amount in dollars that is between the lower and upper limits of the confidence interval.

D.The sample mean spending in 99​% of all samples of 92 members of the​ website's premium program will be between the lower and upper limits of the confidence interval.