Question 1

In the video, the marginal rate of substitution decreases as we move down along the indifference curve because:

Select one:

a. the marginal utility of coffee and the marginal utility of pizza both rise.

b. the marginal utility of coffee falls and the marginal utility of pizza rises.

c. the marginal utility of coffee rises and the marginal utility of pizza falls.

d. the marginal utility of coffee and the marginal utility of pizza both fall.

Question 2

What word do economists use for the value that we get from the goods that we consume?

Select one:

a. Consumption value

b. Utility

c. Surplus

d. Goodness

Question 3

Consumers would always prefer to have more of every good they consume, but what prevents them from reaching higher and higher indifference curves?

Select one:

a. The prices they face and their preferences

b. Their preferences and their income

c. The prices they face and their income

d. The prices they face, their income, and their preferences

Question 4

In a world with just two goods, pizza and coffee, which of the following would NOT be a variable that affects a consumer's budget constraint?

Select one:

a. The consumer's preferences

b. The price of coffee

c. The price of pizza

d. The consumer's income

Question 5

Suppose that the MRS is 4 cups of coffee per pizza and that the prices of coffee and pizza are $2.50 and $10 respectively. In this situation:

Select one:

a. You should purchase more pizzas because the price of a pizza is greater than the MRS.

b. You are not maximizing utility since the MRS is equal to 4 but the price ratio is equal to 1/4.

c. You should purchase more cups of coffee because the MRS is greater than the price of a cup of coffee.

d. You are maximizing utility since you and the market value pizza relative to coffee in the same way.

Question 6

Consumers decide to buy another unit of a good by:

Select one:

a. comparing the price of the good to the total utility of the good.

b. comparing the price of the good to the marginal utility of the good.

c. comparing the total spending on the good to the marginal utility of the good.

d. comparing the total spending on the good to the total utility of the good.

Question 7

Which of the following is true of combinations of coffee and pizza shown on the graph of indifference curves?

Select one:

a. Combinations below and to the right of other combinations are better.

b. Combinations below and to the left of other combinations are better.

c. Combinations above and to the left of other combinations are better.

d. Combinations above and to the right of other combinations are better.

Question 8

What is magical about the price of a cup of coffee?

Select one:

a. That the price of a cup of coffee can actually be lower than the marginal cost of producing the cup of coffee

b. That people are actually smart enough to compute what the price of a cup of coffee should be

c. That a cup of coffee can have one price despite there being tens of thousands of types of coffee

d. That one number can contain so much information about so many different variables in the world

Question 9

If the price of a pizza is $12 then when the price of a cup of coffee falls from $4 to $3:

Select one:

a. the opportunity cost of a pizza rises from 3 cups of coffee to 4 cups of coffee.

b. the opportunity cost of a cup of coffee falls from 4 pizzas to 3 pizzas.

c. the opportunity cost of a cup of coffee rises from 3 pizzas to 4 pizzas.

d. the opportunity cost of a pizza falls from 4 cups of coffee to 3 cups of coffee.

Question 10

The law of demand states that:

Select one:

a. if the price of a good falls, then it must be because the quantity of that good demanded has risen.

b. if the price of a good rises, then it must be because the quantity of that good demanded has risen.

c. if the price of a good falls then the quantity of that good demanded will rise.

d. if the price of a good rises then the quantity of that good demanded will rise.

Question 11

Why does Professor Girante mention that Starbucks offers over 80,000 combinations of drinks?

Select one:

a. To show how Starbucks uses bundling and tying to maximize profits.

b. To show the incredible number of choices that consumers face every day.

c. To show the supposed variety that consumers think they enjoy is just an illusion.

d. To show how producers contribute to the difficulty that consumers have making decisions.

Question 12

If, for a consumer choosing between two goods, the MRS equals the price ratio, then:

Select one:

a. we know nothing about whether the consumer is maximizing utility since prices are measured in dollars, not utility.

b. the marginal utility per dollar is equal for the two goods and the consumer is maximizing utility.

c. the marginal utility provided by each good is equal to that good's price, and the consumer is maximizing utility.

d. the marginal utility per dollar for both goods is equal to 1 and the consumer is maximizing utility.

Question 13

The law of demand arises from:

Select one:

a. every producer analyzing the different choices they have and deciding what to produce.

b. every consumer analyzing the different choices they have and deciding what to buy.

c. the law of supply.

d. the law of market equilibrium.

Question 14

Your income is:

Select one:

a. essentially a random variable from the perspective of economists.

b. determined both by factors under your control and factors not under your control.

c. determined entirely by factors not under your control.

d. determined entirely by factors under your control.

Question 15

Which of the following is NOT necessarily true about indifference curves?

Select one:

a. Indifference curves are always symmetrical.

b. Indifference curves further from the origin represent greater levels of utility.

c. Indifference curves slope downward.

d. Indifference curves cannot intersect each other.

Acquisition Case Study

Company A's board of directors has agreed to a $12,7 billion buyout of the company by two private equity firms, sources told the media on Monday. Comapny A has struck an agreement in principle for PE Fund 1 and Fund 2 to buy all 150 million outstanding shares of Company A for $85 a share in an all cash deal, the sources said.

Final details of the transaction are being hammered out, and the deal could be in place by the opening bell of the NYSE today, a source said. "The price was agreed upon last week," a source said. "The details of the transaction are holding this up. This is a very complicated transaction." Sources said issues such as timing of the stock purchase and dates for closing the transaction were some of the points holding up an announcement. The deal would have to be approved by regulators in the 13 states where Company A operates and has distribution centers, including California and New Jersey.

Representatives of Company A and the private equity firms would not confirm the existence of an agreement Monday. Company A spokesman Mr. Smith on Monday said he could not comment on "market speculation." The media reported the offer earlier Sunday. California's regulators are notified ahead of time by licensees of a potential change in ownership. As of Monday afternoon, members of the licensing committee had not received any word about the Comapny A deal being finalized.
At $12.7 billion, the potenitial deal would rank as the sixth-largest private equity buyout ever, media news said, and would be the largest such transaction for a distribution company.

A committee of Company A board members and representatives and the private equity firms negotiated the terms of the agreement over two days last week in New York. The sides met again Sunday in New York and were reportedly continuing to negotiate on Monda. When the MSNBC announced the news of the deal Monday, shares of Company A jumped on the New York Stock Exchange. By the end of trading, Company A stock price gained $2.68, 3.37 percent, to close at $72.18. Almost 15 million Company A shares were traded during the session, more than four times the average daily volume.

Company A runs distribution centers in 13 states under brands such as Axis, Bruno and Colosus. The company owns the other bottling rights and operates centers in Canada and Spain. Company A has development deals in such countries as Columbia and Slovenia and has a deal to buy United Kingdom distribution hubs London Center International.

In 2010, Company A reportedearnings of $430.3 million on revenue of $7.1 billion. It's projected to make $504 million next year. The company has a market capitalization of almost $10.8 billion. The private equity groups bid $76 a share on Oct. 2 for Company A, reportedly kicking up the offer to $78.50 a share about 10 days later. A special board committee, composed of the non-management board members, began considering the offer.

News of an impending deal for Company A was good for shares of another distribution centers. Company X, which had been bidding against the private equity groups for control of Company A, had its stock price climb $3.08, 8.1 percent, on the Nasdaq National Market to close at $31.24. Company X reportedly had submitted a cash and stock bid of $83.50 a share for Company A.

UBS analyst Adam, in a note to investors Monday, said he did not support the regional operator bidding on Company A. Company X has 16 distribution centers in 12 states. "We were not in favor of the company purchasing Company A given the steep price tag and the number of shares that would have to be issued by Company X to consummate the transaction," Adam said. "Through this process, we believe that Company X has obtained a head start on other companies that would be interested in acquiring some of Company A assets, which might be divested following the privatization." Adam would not rule out Company X operation a similarty styled centers. "Company X sent a powerful message to the investment community that it is prepared to become very active in further industry consolidation and is serious in its pursuit of a presence in California and New Jersey." Adam said. "Comapny X has reached its current size through prudent acquisitions, which have delivered value to shareholders."

Company X could be in the market for other similar companies that do not have shares concentrated in a single person or family, analysts said. That ruled out companies such as Company Y and Company Z. "We believe other small-cap companies could now become potential candidateds for acquisition by Company X." Adam said. "These companies include Company E, which we view as a smaller version of Company A and which has very little overlap with Company X."

PE Fund B founding partner Jack was the fomer co-head of corporate finance at now-defunct Total Finance Inc., the top underwriter of high-yield corporate debt before collapsing in 1980. Jack, 55, founded PE Fund B that year and has mede equity investments of more that $16 billion. PE Fund A created the nation's second-biggest buyout fund this year, raising $10 billion. The firm has raised more than $18 billion through six funds in the 12 years since it was founded by Dan, Joel and Bill. It has invested in about 75 companies.

At $85 a share, PE Fund A and PE Fund B would be paying less for Company A earnings than what Company Y's or Company Z's profits are worth on the stock market. Company A is being valued at 21.4 times projected 2011 earnings, based on the average estimate of 18 analysts surveyed by Bloomberg. That compares with a 24.6 ratio for Company Z and 50.7 for Company Y. At last week's stock market price, according to Bloomberg data.

QUESTIONS:
1. Background information of the deal
2. Potential opportunity
3. Potential issue
4. Your reasoning of why X made a bid for A
5. Your reasoning of why UBS is against X' bid of A

The attached MS-Excel file contains data on the bus fleet of the Buena School district. Download the file and analyze the characteristics of the Buena Bus fleet.

a. Sort the data by type of Bus Manufacturer and calculate the Average Cost of Maintenance for each Manufacturer

b. Sort the data by Fuel Type and calculate the cost of Maintenance and the Average Mileage by each fuel type of fuel

c. Present your results in a table and a chart. Cut and paste your chart and table into MS-Word and attach your results.

Jan Northcutt, owner of Northcutt Bikes, started business in 1995. She notices the quality of bikes she purchased for sale in her bike shop declining while the prices went up. She also found it more difficult to obtain the features she wanted on ordered bikes without waiting for months. Her frustration turned to a determination to build her own bikes to her particular customer specifications.

She began by buying all the necessary parts (frames, seats, tires, etc.) and assembling them in a rented garage using two helpers. As the word spread about her shop’s responsiveness to options, delivery, and quality, however, the individual customer base grew to include other bike shops in the area. As her business grew and demanded more of her attention, she soon found it necessary to sell the bike shop itself and concentrate on the production of bikes from a fairly large leased factory space.

As the business continued to grow, she backward integrated more and more processes into her operation, so that now she purchases less than 50% of the component value of the manufactured bikes. This not only improves her control of production quality but also helps her control the costs of production and makes the final product more cost attractive to her customers.

The Current Situation

Jan considers herself a hands-on manager and has typically used her intuition and her knowledge of the market to anticipate production needs. Since one of her founding principles was rapid and reliable delivery to customer specification, she felt she needed to begin production of the basic parts for each particular style of bike well in advance of demand. In that way she could have the basic frame, wheels, and standard accessories started in production prior to the recognition of actual demand, leaving only the optional add-ons to assemble once the order came in. Her turnaround time for an order of less than half the industry average is considered a major strategic advantage, and she feels it is vital for her to maintain or even improve on response time if she is to maintain her successful operation.

As the customer base have grown, however, the number of customers Jan knows personally has shrunk significantly as a percentage of the total customer base for Northcutt Bikes, and many of these new customers are expecting or even demanding very short response times, as that is what attracted them to Northcutt Bikes in the first place. This condition, in addition to the volatility of overall demand, has put a strain on capacity planning. She finds that at times there is a lot of idle time (adding significantly to costs), whereas at other times the demand exceeds capacity and hurts customer response time. The production facility has therefore turned to trying to project demand for certain models, and actually building a finished goods inventory of those models. This has not proven to be too satisfactory, as it has actually hurt costs and some response times. Reasons include the following:

• The finished goods inventory is often not the “right” inventory, meaning shortages for some goods and excessive inventory of others. This condition both hurts responsiveness and increases inventory costs.
• Often, to help maintain responsiveness, inventory is withdrawn from finished goods and reworked, adding to product cost.
• Reworking inventory uses valuable capacity for other customer orders, again resulting in poorer response times and/or increased costs due to expediting. Existing production orders and rework orders are both competing for vital equipment and resources during times of high demand, and scheduling has become a nightmare.

The inventory problem has grown to the point that additional storage space is needed, and that is a cost that Jan would like to avoid if possible.

Another problem that Jan faces is the volatility of demand for bikes. Since she is worried about unproductive idle time and yet does not wish to lay off her workers during times of low demand, she has allowed them to continue to work steadily and build finished goods. This makes the problem of building the “right” finished goods even more important, especially given the tight availability of storage space.

Past Demand

The following shows the monthly demand for one major product line: the standard 26-inch 10-speed street bike. Although it is only one of Jan’s products, it is representative of most of the major product lines currently being produced by Northcutt Bikes. If Jan can find a way to sue this data to more constructively understand her demand, she feels she can probably use the same methodologies to project demand for other major product families. Such knowledge can allow her, she feels, to plan more effectively and continue to be responsive while still controlling costs.

Questions and assignment:

1. Plot the data and describe what you see. What does it mean and how would you use the information from the plot to help you develop a forecast?
2. Use at least two different methodologies to develop as accurate a forecast as possible for the demand. Use each of those methods to project the next four months demand.
3. Which method from question 2 is “better”? How do you know that?
4. How, if at all, could we use Jan’s knowledge of the market to improve the forecast? Would it be better to forecast in quarterly increments instead of monthly? Why or why not?
5. Are there other possible approaches that might improve Jan’s operation and situation? What would they be and how could they help?

1. Find the appropriate measure of center. Discuss why the chosen measure is most appropriate. Why did you decide against other possible measures of center? 2. Find the appropriate measure of variation. The measure of variation chosen here should match the measure of center chosen in Part 1. 3. Find the graph(s) needed to appropriately describe the data. These may be done by hand and inserted into the Word document. You can also use Excel or a Web Applet to create a Histogram of the chosen data. Graphs can be copied and pasting onto the template. 4. Define the random variable (X) so that your chosen data set represents values of X. 5. Is your chosen random variable discrete or continuous? Explain how you know. 6. Would the Normal or Binomial distribution be a good fit for the underlying sample distribution of X? If one of them is a good fit, state how you would approximate the distribution parameters (Use the mean and standard deviation of the data chosen) 7. If you selected column D, calculate the probability that a flight will depart early or on-time. If you selected column E, calculate the probability that a flight will arrive early or on time using the empirical definition of probability. 8. If you selected column D, calculate the probability that a flight will depart late. If you selected column E, calculate the probability that a flight will arrive late using the empirical definition of probability. 9. For those that selected column D, assume now that the random variable X = Departure Time is exactly normally distributed with mean m= -2.5 and standard deviation s= 23. Compute the probability of a flight arriving late based on this new information. For those that selected column E, assume now that the random variable X = Arrival Time is exactly normally distributed with mean m= -2.5 and standard deviation s= 23. Does this contradict your answer from Part 8? Data: 0 -3 0 -7 8 -1 3 11 -6 -5 -8 -4 -13 -13 -11 -14 -16 -14 -18 -18 -23 -23 2 1 -4 -6 7 -8 -8 -4 -4 -5 -13 -9 -12 -7 -12 1 4 -19 -13 -19 3 12 13 2 0 0 4 -7 8 9 -1 -10 -6 -12 -14 -13 9 -15 -13 -14 20 -16 11 -14 18 -19 -3 -4 0 -3 2 6 6 -6 1 11 -7 -10 -13 9 -13 -18 -17 -11 -20 -18 8 0 -20 -3 1 -1 -4 -6 -5 -8 -10 -9 -6 8 -9 -12 -15 -14 -9 -17 -13 -17 2 -18 -18 -16 1 -4 0 -5 7 -7 -7 -5 0 5 -6 -12 1 6 -10 -15 -18 -16 -17 0 -21 -18 5 1 3 -2 -1 -2 -3 4 3 -11 9 -11 -11 0 -11 17 -10 -11 0 -19 -18 0 8 -23 3 -3 -4 -6 0 2 -1 -9 -9 4 1 -9 -12 0 0 -11 -14 -19 -17 -13 23 8 21 3 4 -2 1 6 7 -9 -3 1 -9 -5 -11 -6 -6 -10 -13 -9 -17 -6 -20 1 -21 -22 -2 0 -4 -3 3 -5 -6 -3 -5 -8 -12 -10 -7 -16 1 -14 -14 -16 -7 13 -17 -16 7 0 1 1 4 1 -8 -5 -9 0 -4 8 -7 -14 7 -8 5 4 8 21 3 11 2 -23 0 4 3 2 0 -1 -7 5 3 8 12 -12 -15 -11 -7 17 -15 -13 -17 -21 4 -19 -24 3 0 4 0 -2 -8 -5 6 5 1 -12 -14 7 8 -16 -11 -17 -20 10 4 -14 -22 -22 -3 -4 2 -4 -2 0 6 -6 2 -9 -3 -10 -13 7 -10 -12 -13 -16 -20 1 -14 -21 -17 3 -1 -1 0 -2 -7 -4 0 11 3 -11 -12 -11 -8 -13 -16 -16 7 2 -21 3 9 0 3 0 -5 -3 -3 -3 -3 -4 9 0 -8 -10 12 5 -16 -16 -13 -13 3 -19 0 -20 2 -3 -2 3 5 -1 -8 -3 -7 -11 -7 -10 12 -12 -8 17 -9 -18 -17 -14 1 -13 -21 -22 -2 -3 3 -3 -2 -7 -5 -10 -8 -6 -13 11 -11 -16 -9 -13 -12 -13 -16 -10 -20 -19 -22 -1 -4 2 4 -3 -8 4 -3 -7 -11 -13 2 -13 -12 -15 3 -17 -10 3 0 -19 -20 -20 0 0 -5 -4 -3 -5 -1 -8 -7 -2 13 11 -10 -12 -15 -14 -17 -18 6 12 6 -19 -20 0 -1 -5 -1 4 6 3 8 0 -11 -8 -14 -13 -11 3 -7 -11 10 -19 -20 -21 0 3 0 -4 0 2 -6 -7 -6 -7 8 -12 -2 -13 -7 9 -15 -14 -14 -17

Cost-Benefit Analysis

Overview

You will take on the role of a senior member of the finance team assigned to lead the investment committee of a medium-sized telecommunications equipment manufacturer. Your team is evaluating a "make-versus-buy" decision that has the potential to improve the company's competitiveness, but which requires a significant capital investment in new equipment. The assignment is organized into two parts:

Part A: Data calculations based on the information in the scenarios

Part B: Recommendations based on the calculations

Opportunity Details The new equipment would allow your company to manufacture a critical component in-house instead of buying it from a supplier. This capability would help you stabilize your supply chain (which has suffered from some irregularities and quality issues in the past). It could also have a positive impact on profitability through the absorption of fixed costs since this new machine will have plenty of excess capacity. There may even be a possibility that the company could leverage this capability to allow new external revenue stream by providing services to other companies.

The company has been growing steadily over the past 5 years, and the financials and future prospects look good. Your CEO has asked you to run the numbers. After doing some digging into the business, you have gathered information on the following:

• The estimated purchase price for the equipment required to move the operation in-house would be $750,000. Additional net working capital to support production (in the form of cash used in Inventory, AR net of AP) would be needed in the amount of $35,000 per year starting in year 0 and through all years of the project to support production as raw materials will be required in year o and all years to run the new equipment and produce components to replace those purchased from the vendor..

• The current spending on this component (i.e. annual spend pool) is $1,200,000. The estimated cash flow savings of bringing the process in-house is 20% or annual savings of $240,000. This includes the additional labor and overhead costs required.

• Finally, the equipment required is anticipated to have a somewhat short useful life, as a new wave of technology is on the horizon. Therefore, it is anticipated that the equipment will be sold after the end of the project (the last year of generated cash flow) for $50,000. (i.e. the terminal value).

Input from Stakeholders

As part of your research, you have sought input from a number of stakeholders. Each has raised important points to consider in your analysis and recommendation. Some of the points and assumptions are purely financial. Others touch on additional concerns and opportunities.

1. Ann, your colleague from Accounting, recommends using the base assumptions above: 5-year project life, flat annual savings, and 10% discount rate. Andrew does not feel the equipment will have any terminal value due to advancements in technology.

2. Steve from Sales is convinced that this capability would create a new revenue stream that could significantly offset operating expenses. He recommends savings that grow each year: 5-year project life, 10% discount rate, and a 10% annual savings growth in years 2 through 5. In other words, instead of assuming savings stay flat, assume that they will grow by 10%% in year 2, and then grow another 10% over year 2 in year 3, and so on. Stanley feels that the stated terminal value is reasonable and used it in his calculations.

3. Ellen from Engineering believes we use a higher Discount Rate because of the risk of this type of project. As such, she is recommending a 5-year project life and flat annual savings. Eva suggests that even though the equipment is brand new, the updated production process could have a negative impact on other parts of the overall manufacturing costs. She argues that, while it is difficult to quantify the potential negative impacts, to account for the risk, a 12% discount rate should be used. Being an engineer, Eva feels that the stated terminal value is low based on her experience, and is recommending a $75,000 terminal value,

4. Peter, the Product Manager, is convinced the new capability will allow better control of quality and on-time delivery, and that it will last longer than 5 years. He recommends using a 7 Year Equipment Life (which means a 7-year project and that savings will continue for 7 years), flat annual savings, and 10% discount rate. In other words, assume that the machine will last 2 more years and deliver 2 more years of savings. Paul also feels the equipment will have an estimated terminal value of $25,000 at the end of its 7- year useful life as it will be utilized longer thus having less value at the end of the project and savings.

5. Owen, the head of Operations, is concerned that instead of stabilizing the supply chain, it will just add another process to be managed, and will distract from the core competencies the company currently has. She feels the company should focus on improving communication and supply chain management with its current vendor, and she feels confident he can negotiate a discount of 4% off of the annual outsourcing cost of $1,200,000 if she lets it be known they are considering taking over this step of the process. As there is little risk associated with Olivia’s proposal due to no upfront capital requirements, a lower risk-free discount rate of 7% would be appropriate. Oliva feels that any price reductions from the current vendor will last for five years. (NOTE: because there is no “investment”, the Payback and IRR metrics are not meaningful. Simply provide the NPV of the Savings cash flows)

PART A: Data Calculations

Using the data presented above (and ignoring the extraneous information), for this profit and supply chain improvement project, calculate each of the following (where applicable):

o  Nominal Payback

o  Discounted Payback

o  Net Present Value

o  Internal Rate of Return

Present your calculations and results either in an Excel Spreadsheet or in Word (using tables and headers to organize the information in a way that is clear and easy to read). Be sure to show your detailed calculations.

1. Which government activity is not an example of fiscal policy( TAXATION & SPENDING)?

a) Collecting unemployment insurance taxes

b) Collecting gasoline taxes

c) Providing solar energy subsidies

d) Buying missiles from defense contractors

e) Regulating natural monopolies

2. Confidence in Keynesian economics:

            a) Diminished in the 1960’s as inflation recurred.

            b) Diminished in the 1960’s as inflation occurred simultaneously with two recessions.

            c) Diminished in the 1960’s as unemployment recurred.

            d) Diminished in the 1970’s with “stagflation”

            e) Flourished through the 1980’s.

3. A change in income will
            a) Affect demand and supply the same.

            b) Affect quantity supplied through the income effect shift supply curve.

            c) Shift the demand curve.

            d) Have no effect since everything is held constant along a demand curve.

            e) Have a different effect on demand depending on equilibrium price.

4. The division of labor refers to:

            a) Having each worker or firm specialize in a separate task.

            b) Separating workers by race.

            c) Letting everyone share in a specific task.

            d) Letting each worker make a separate product from start to finish.

            e) Separating management from workers.

5. A price ceiling imposed by the government result in an:

            a) Excess demand at equilibrium price.

            b) Excess demand at the price ceiling.

            c) Excess supply at the price ceiling.

            d) Excess supply at equilibrium price.

            e) Excess demand at a price above the equilibrium.

6. The circular flow of the economy is primarily used to trace the flow of:

            a) Money through the economy.

            b) Consumer spending through the economy.

            c) Goods through the economy.

            d) Resources, production, and money through the economy.

            e) Resources through the production process.

7. If the price level is above the equilibrium level:

            a) The resulting excess demand will force the price level down.

            b) The resulting excess demand will force the price level up.

            c) The resulting excess supply will force the price level up.

            d) The resulting excess supply will force the price level down.

            e) The resulting unemployment will force the price level up.

8. A “laissez-faire” approach to the macroeconomy before the Great Depression influences our government to:

            a) See business downturns as a “serious malady” in a “healthy” system, and therefore take only short-term deficit spending measures to help recovery.

            b) See business downturns as a “serious malady” to an otherwise “healthy system,” and therefore wait for recovery to occur naturally.

            c) See business downturns as a “serious malady” to an otherwise “healthy system,” and therefore work to redesign the system to avoid such failure in the future.

            d) See business downturns as a failure of the type of system Adam Smith envisaged, and thus move toward a modern, more managed economy.

            e) See business downturns as a failure of the current system to be the type that Adam Smith envisaged, and thus move toward less government interference in the macro economy

9. Keynes believed that the Great Depression was caused by:

            a) Unemployment.

            b) Deficit spending by the government.

            c) The tax increases put through by President Herbert Hoover.

            d) The policies of “demand-style” economies.

            e) A fall in aggregate demand.

10. Keynes believed that the best method for ending the Great Depression would be to:

            a) Increase the money supply so that individuals would have more to spend.

            b) Cut government spending and increase taxes to reduce.

            c) Increase government spending and cut taxes so that consumers would spend more.

            d) Cut both government spending and taxes so that government would not be such a large     part of the economy.

            e) Increase both government spending and taxes to increase the role government played     in the economy.

11. Keynes was:

            a) In favor of a federal budget deficit to cure an inflation.

            b) Opposed to a federal budget surplus to cure an inflation.

            c) In favor of a federal budget deficit to cure a recession.

            d) In favor of a federal budget deficit regardless of the state of the economy.

12. Proponents of monetarism:

            a) Feel that fiscal policy of worthless.

            b) View government spending as the most important public policy tool.

            c) View taxation as the most important public policy tool.

            d) Support Keynesian economics.

            e) View the money supply as the most important public policy tool.

13. The word “stagflation” describes a situation in which:

            a) Inflation is stagnated.

            b) Inflation increases with economic growth.

            c) Inflation and unemployment occur at the same time.

            d) Inflation is low enough to grow economic growth.

            e) Inflation is zero.

14. The main difference between economic change before 1970 and after 1970 is that before 1970:

            a) Most macroeconomic instability was caused by simultaneous shifts in aggregate demand and aggregate supply.

            b) Most macroeconomic instability was caused by shifts in aggregate supply.

            c) Most macroeconomic instability was caused by shifts in aggregate demand.

            d) The government assumed no direct responsibility for the level of employment.

            e) The government itself was a much less important player in the macroeconomy.

15. The labor force consists of:

            a) All the people in the economy.

            b) All the people in the economy over 16 years of age.

            c) All the adults in the economy able to work.

            d) All the adults in the economy who hold jobs or are looking for them.

            e) All the adults in the economy qualified to hold a job.

16. Consider an economy with 100 people, 70 of whom hold jobs and 10 of whom are looking. The number of people in the labor force is:

            a) 100

            b) 30

            c) 10

            d) 80

            e) 70

17. Consider an economy with 100 people, 70 of whom hold jobs and 10 of whom are looking. The rate of unemployment is:

            a) 10 percent.

            b) 12.5 percent.

            c) 14.3 percent.

            d) 20 percent.

18. The labor force participation rate for women in the United States has

            a) Stayed the same over the last 30 years      

            b) Increased significantly since the 1950s     

            c) Been influenced by decreasing real wages since 1960     

            d) Trended substantially downward since the 1950s

            e) Increased only very slightly since the 1950s

ITAP1004 Website Development
Assignment











July 2020
Due Date: Session 13
Weightage: 25% (Task 1- 20% and Task 2 -5%)
Individual Assignment
The purpose of assignment is to assess students on the following Learning Outcomes:
LO 1 Explain characteristics of commercial web sites and associated authoring/management issues
LO 2 Analyse the features of a range of software tools used in the development of websites LO 3 Research key features of internet standards and protocols, including World Wide Web standards
LO 4 Develop web pages using standard mark-up and scripting programming languages and models
LO 5 Write program code to produce dynamic database driven web documents
LO 6 Produce design specification documents applicable to a web site authoring task LO 7 Identify and discuss website usability principles and issues

_______________________________________________________________________________ Assignment Description
You are to develop from the beginning a web site about yourself with regards to your course studies and any certifications you have done so far. This web site provides certain required details about your education/studies which you did. You will design and develop your web site with Notepad/Notepad++, HTML, Java Script and CSS.

The purpose of this assignment is for you to build a web site that will contain some details about all of your course degrees you have achieved so far including all the certifications with, e.g., the number of degrees you are holding so far, the number of institutes you enrolled yourself, etc.

This assignment involves creation of three HTML files corresponding to the three pages of your web site and all are connected to an external CSS file. You will need to determine how your site will be designed and then you will develop the pages using HTML, Java Script and CSS.
The pages and CSS file you will develop are explained below.

Home page (.HTML file)
The first page of your site the user sees will be a home page. This page will be a welcome to the site. You will explain to the user what the site is about. The content of the page will include at least two paragraphs. An appropriate heading must be placed at the top of the page indicating what the page or site is about.
The word limit for this page, excluding the heading, is 130 – 150 words. You must keep the number of words within this range.
In the home page, add two links for “Course details” page and “About Me” page.

NOTE: All pages must have links to the other pages.

Past Course details page (.HTML file)
Begin this page with an appropriate heading (as all pages of the site will have) reflecting that this page deals with details about all the unit courses. Do not use “Course details” in the heading but use another title for your heading.

Current Course details page (.HTML file)
This page conveys certain aspects about all the unit course details.
Like the previous page, show a heading at the top of the page. Do not use “Current course details” in the heading text but use some other title.

Cascading Style Sheet
Use CSS file for formatting used for all web pages.

Ensure that you use appropriate names for all files of the site. Avoid file names that reflect that they are about a university assignment, but instead reflect what their purpose is in the site.
Also ensure that file contents are laid out properly and neatly and that all code is indented consistently and properly.
Task 1: Develop a web site about yourself with regards to your course studies and any certifications you have done so far. This web site provides certain required details about your education/studies which you did. You will design and develop your web site with Notepad/Notepad++, HTML, Java Script and CSS. Mention the website usability issues based on the website you have developed.  

Task 2: After developing the website, explain the characteristics of that website and associated authoring/management issues.

Submission Guidelines:

The report should have a consistent, professional, and well-organized appearance.
1. This assessment item requires you to work individually.
2. Late penalty applies on late submission, 10% per day would be deducted.
3. Do not include any images in your site. Using images from other sites where permission is not granted will violate copyright associated with those images. No marks are being awarded for use of images so there is no benefit in including images.
4. It is without a doubt that students could be able copy text or other material from the other sites and include it, as it is, in their own sites. This would be a clear case of plagiarism. Plagiarism is a form of academic dishonesty that in this case would involve theft of material, and this would result in penalization of the student.
5. All content that is used in the student’s site must be totally written in their own words.
6. Students carry out the assignment individually. Students must not share any part of their work with each other.


Marking Guide: 100 Marks
Task Description Marks
Home Page Content 10
Page Viewable (i.e. actually works) in browser 10

Course Details Page Introductory Paragraph 10
Table 10
Page Viewable (i.e. actually works) in browser 5
Current Course Details Page Introductory Paragraph
10
Numbered List
5
Page Viewable (i.e. actually works) in browser
5
CSS One external CSS applied to all pages 10
Other Heading on every page
5
Relevant naming of all files used in site
10
Layout of and indentation within files
10
Total Page Viewable (i.e. actually works) in browser 100

Summarize the article and answer the following questions in your answer:

1. What specific metrics are being used?

2. What value is the company getting from using this data?

Was this similar to what the Obama campaign did on Facebook?

Sort of. The Obama campaign did collect a similar level of data from its app, which includes both your information and your friend's information.

But as Politifact notes, users were willingly giving up that information and knew it was going to a political campaign. The Obama campaign used your friend's data to figure out who may or may not be willing to vote for him, and sent messages to users to persuade their friends.

That's different from the Cambridge Analytica situation, since most users taking the digital life quiz had no idea that the data would be used for political purposes.

What's Facebook doing about this?

After five long days, Zuckerberg broke his silence on March 21 with a nearly 1,000-word post on his Facebook page. (C'mon, did you really expect it to show up on Twitter?) The post was his first since since March 2, when he shared a photo of his family celebrating the Jewish holiday of Purim.

Zuckerberg acknowledged that Facebook had made mistakes with users' information. "We have a responsibility to protect your data," he wrote. "And if we can't then we don't deserve to serve you."

He's since sat down for several media interviews, and on April 4, held an hour-long conference call with journalists. "Life is learning from mistakes," Zuckerberg said. "At the end of the day, this is my responsibility. I started this place, I run it, I'm responsible."

The company, he said, is now facing two central questions: "Can we get our systems under control and second, can we make sure that our systems aren't used to undermine democracy," Zuckerberg said.

"It's not enough to give people a voice, we have to make sure that people are not using that voice to spread disinformation," he added.

And, specifically, he acknowledged that Facebook has "to ensure that everyone in our ecosystem protects people's information."

We have a responsibility to protect your data. And if we can't then we don't deserve to serve you.

Facebook CEO Mark Zuckerberg

He's promised to investigate apps that had access to "large amounts of information" before the company made changes to how much information third-party apps could access in 2018. Facebook will conduct a full audit of apps that exhibit suspicious behavior and bar developers who don't agree to audits.

On April 6, Facebook said it was banning AggregateIQ, another political analytics firm that's reportedly tied to Cambridge Analytica's parent company, SCL. (Aggregate IQ denies this connection.) Facebook said it instituted the ban out of concern that AggregateIQ may have improperly received Facebook user data as well.

Facebook's public missteps have brought up other concerns about Facebook too. One example is a memo leaked to BuzzFeed penned by Andrew "Boz" Bosworth, a top Facebook executive. The 2016 memo advocates growth above everything else, regardless of whether people use Facebook to bully and harass one another.

"The ugly truth is that we believe in connecting people so deeply that anything that allows us to connect more people more often is *de facto* good," he wrote at the time. He's since said he was trying to stir debate, and didn't agree with what he'd written.

Facebook is also planning to restrict how much access developers have to your information, limiting the information it gives apps to your name, photo and email address. It'll also revoke an app's access to your data if you haven't used it for three months.

The company is also planning to further restrict political advertising, Sheryl Sandberg, Facebook's COO, said in an interview with Bloomberg. "If you were using hate-based language in ads for elections, we're drawing those lines much tighter and applying them uniformly," she said.

Last, Facebook will begin displaying a gauge at the top of your News Feed that lets you know which apps you've used and let you revoke their permissions.

Are people bailing from Facebook?

They are, though it's still too early to know if that'll have a substantial effect on Facebook's gargantuan user numbers. Right off the bat, the hashtag #DeleteFacebook flared up on Twitter -- backed by, notably, Brian Acton, WhatsApp's co-founder who sold the messaging service to Facebook for $19 billion.

We're also starting to see some action that could hit Facebook in the wallet. Within days of the scandal erupting, Firefox maker Mozilla said it would no longer advertise on Facebook because of data privacy concerns, and it launched a petition to ask the social network to improve its privacy settings. Meanwhile, Tesla and SpaceX CEO Elon Musk has taken a different kind of stand. Prompted by an inquiry from a Twitter user, he quickly deleted both companies' Facebook pages. So did Playboy, for what it's worth.

Beyond those high profile moves, a recent survey from the anonymous employee social network Blind found that 31 percent of tech workers plan to delete Facebook too. Coverage of Facebook has turned negative too, a survey by BuzzFeed found.

Still, Zuckerberg said in a call on April 4 that the larger #DeleteFacebook campaign hasn't had a noticeable effect on its active user counts.

Ultimately, reform is what's needed, said former Cambridge Analytica executive Brittany Kaiser. "For many years, I never questioned it," Kaiser said. "That's the way that the political system works. That's the way that advertising works. That's the way that every single industry that exists in the entire basis of digital communications works. I do really understand the industry, and I have the ability to be a voice for change."