2-One of the Principles of economics “Trade Can Make Everyone Better Off.” Based on your understanding of this principle, first, explain the fundamental principles of the trade between the two countries. Today we can see that some countries started to impose some restrictions on the flow of goods and services, do you think these practices contradict the principle? Why?

Walkenhorst Company’s machining department prepared its 2019 budget based on the following data:

The department uses machine hours to apply factory overhead to production. In 2019, the department used 86,800 machine hours and incurred $602,000 in total manufacturing overhead cost to manufacture 42,170 units. Actual fixed overhead cost for the year was $351,000.

Required:

Determine for the year:

4. The total overhead spending variance. State whether this variance was favorable (F) or unfavorable (U).

5. The overhead efficiency variance. State whether this variance was favorable (F) or unfavorable (U).

6. The variable overhead spending variance and the fixed overhead spending variance. State whether each variance is favorable (F) or unfavorable (U).

#1

Please identify what they are (i.e., discretionary fiscal policy, monetary policy, or automatic stabilizer) and explain why.  

1a) A terrible recession occurs as a result of a bubble in the housing market bursting, and government-funded unemployment compensation is paid out to laid-off workers.

1b) As the economy heats up, the resulting increase in equilibrium GDP results in higher income tax payments, which dampen consumption spending somewhat.

1c) To stem an overheated economy, the president, using special powers granted by Congress, authorizes emergency impoundment of funds that Congress had previously authorized for spending on some government programs to help reduce government spending (G), and thus help reduce inflation.

1d) The Federal Reserve decides to increase the money supply in order to help lower interest rates and stave off a more severe recession.

Can an export please help me solve this? I need help with this question as it is for macro Econ.

1. Suppose the amount of money UCLA students spend on movies during a one month period observes normal distribution. A sample is taken containing monthly movie spending in dollars for several UCLA students as 66.72, 50.23, 40.57, 45.53, 60.45, 70.85, 57.49, and 53.46. Round your numbers to two decimal places. All the calculation should be preceded with the formula used.

a. Calculate the sample mean, sample standard deviation, and standard error.

b. Estimate the average monthly movie spending by all UCLA students with a 95% confidence interval.

c. From this sample, can we conclude that the average monthly movie spending by UCLA students is lower than 63.45 dollars at the 0.01 level of significance? (Show 7 steps)

d. Suppose the population standard deviation is known with a value of 7.14. Would the conclusions in b and c change? If yes, what would be the new conclusions? ? (Show 7 steps)

1.   Do consumers spend more on a trip to Walmart or Target? Suppose researchers interested in this question collected a systematic sample from 85 Walmart customers and 80 Target customers by asking customers for their purchase amount as they left the stores. The data collected are summarized in the table below.
   
Walmart
Target
sample size
85
80
sample mean
$45
$53
sample std dev
$20
$18

a.   Check the conditions to create a confidence interval for the difference in spending at the two stores.
b.   Create a 95% confidence interval for the difference in spending at the two stores. (Note: We don’t have the full data, so you can use the formulas on page 342 or a program that doesn’t require it.)
c.   Interpret your confidence interval with a sentence.
d.   Your CI from part b does not contain zero. Does that mean the difference in spending at the two stores is statistically significant? Why or why not?

READ DOCUMENT AND ASNWER THE FOLLOWING QUESTIONS

1.Explain what is meant by government policy. What change in government policy occurred in Korea in the 1960 – 1980 time period? What impact had the change in policy on the savings rate?

2. Looking back over corporate, private (personal) and public savings rate, describe the trend in South Korea. What is the driver of savings for the Koreans? Consider the corporate, private (personal) and public savings rate.

A number of East-Asian nations have experienced significant economic growth, and the rapid nature of this growth rate has allowed them to be classified as Newly Industrialised Countries (NICs). South Korea is a prime example, and major NIC, since the 1960s

BACKGROUND Since World War II, South Korea has achieved an incredible record of growth of per annum GDP growth of well over 9% and integration into the high-tech modern world economy. An extremely competitive education system and a highly skilled and motivated workforce are two key factors driving this knowledge economy. In recent years, Korea's economy moved away from the centrally planned, government-directed investment model toward a more marketoriented one. Economists are concerned that South Korea's economic growth potential has fallen because of a rapidly aging population and structural problems that are becoming increasingly apparent.

1950s After World War II, South Korean policymakers set upon stimulating economic growth by promoting indigenous industrial firms, following the example of many other post-World War II developing countries. The government selected firms in targeted industries and gave them privileges to buy foreign currencies and to borrow funds from banks at preferential rates. It also erected tariff barriers and imposed a prohibition on manufacturing imports, hoping that the protection would give domestic firms a chance to improve productivity through learning-by-doing and importing advanced technologies. However, unproductive profit-seeking activities such as bribing were common which caused efficiency to decrease and living standards to stagnate, providing a background to the collapse of the First Republic in April 1960. With living standards

1960s In the early 1960s, as a result of rapid industrialization the government adopted of an outward-looking strategy. This strategy was particularly well suited to that time because of South Korea's poor natural resource endowment, low savings rate, and tiny domestic market. In the 1960s, the Koreans saved about 10 percent of their gross national product. In 1965, the national saving ratio was 13.2%. The reason Koreans saved "so little" during a period of rapid capital accumulation between 1962 and 1976 may have been a consequence of government policy.

1970s - 1980s The increase in the national savings ratio was not always smooth. The ratio reached a 28 percent level as early as 1977 but then slipped to 22 percent during 1980-82 with the slowdown of economic growth, before rising sharply again. By 1986, Korea was experiencing real growth of 12.9% and had achieved a saving ratio of 33.1%. South Korea’s sustained growth boom resulted in a national saving rate that was among the highest in the world. The growth was attributable to increased use of productive inputs, physical capital in particular, than to productivity advances. The rapid capital accumulation was driven by an increasingly high savings rate due to a falling dependency ratio, a lagged outcome of rapidly falling mortality during the colonial period.
Saving rates sharply declined from 1989. The fall in Korea's saving rates for this period can be attributed to lowered income growth rates, rising inflation rates, and increased government budget deficits. The Asian financial crisis of 1997-98 exposed longstanding weaknesses in South Korea's development model including high public debt/equity ratios, massive foreign borrowing, and an undisciplined financial sector. The decline in gross savings rates fell from 36.6% in 1998 to 30.7% in 2008 due to a dramatic decrease in personal savings.

Personal savings collapsed from 18.5% of GDP in 1998, to about 5% between 2006 and 2008; the net personal savings rate was roughly 2.5% in 2008. Despite this trend in personal savings, gross savings have remained durable due to economic expansion and income growth. In the aftermath of the Asian financial crisis, increased risk and uncertainty have increased precautionary savings by firms. The demographic transition of the Korean population may have influenced the savings rate. The life-cycle hypothesis posits that individuals save during their working years and spend their savings after retirement. Korea's population is rapidly ageing, rising the old-age dependency
ratio - the number of dissavers is rising relative to the number of savers, thus reducing aggregate savings. The rising old-age dependency ratio has had a large impact on savings rates.

Company XYZ manufactures a tangible product and sells the product at wholesale. In its first year of operations, XYZ manufactured 1,400 units of product and incurred $224,000 direct material cost and $108,500 direct labor costs. For financial statement purposes, XYZ capitalized $63,500 indirect costs to inventory. For tax purposes, it had to capitalize $94,500 indirect costs to inventory under the UNICAP rules. At the end of its first year, XYZ held 280 units in inventory. In its second year of operations, XYZ manufactured 2,800 units of product and incurred $462,000 direct material cost and $238,000 direct labor costs. For financial statement purposes, XYZ capitalized $102,000 indirect costs to inventory. For tax purposes, it had to capitalize $156,000 indirect costs to inventory under the UNICAP rules. At the end of its second year, XYZ held 420 items in inventory.

Required: Compute XYZ’s cost of goods sold for book purposes and for tax purposes for second year assuming that XYZ uses the FIFO costing convention.

Compute XYZ’s cost of goods sold for book purposes and for tax purposes for second year assuming that XYZ uses the LIFO costing convention.

• Required A
• Required B

Compute XYZ’s cost of goods sold for book purposes and for tax purposes for second year assuming that XYZ uses the FIFO costing convention. (Do not round intermediate calculations.)

FX, Inc. is a volume manufacturer of high technology automotive mirrors (including cell link and voice activation). FX is looking to expand their operations to add a second product line capable of producing 1.3 Million units per year. The equipment investment cost for this new operation is $27 Million. The project falls under a 7 year MACRS class life and the company estimates that the salvage value will be $2.7 Million at the end of the 6 year project. The average selling price for each mirror is $85 per unit. The annual expected sales shown below:

The material cost for each mirror is $20 (with 25 % of the material imported from Canada and 35% from Mexico). The labor to produce each mirror is $15 with additional variable cost of manufacturing at $17 per unit. The fixed cost of manufacturing operations is $10 Million per year. FX maintains 1 month of raw materials and 1 month of WIP and finished goods combined to balance overall automotive demand. Assume that FX has a federal tax rate of 25% and a state tax rate of 5%. Also assume that FX uses a MARR of 15% for all economic analyses.

b) If the company could borrow $10 Million of the $27 Million needed at 10%, how would this change the NPV calculation?

c) If inflation is estimated at 2% and the pricing is locked for the six year period, how does your NPV change? Assume that the company borrowed $10 Million of the $27 Million needed at 10%.