1. State Kaldor’s stylized facts (4 of them). Derive their implications for the share of national income paid to the owners of capital, the capital income share. Assume firms combine capital and

labor to produce output according to Y = K α N 1−α where α is the elasticity of output to capital, i.e. the percentage change in output for a given percentage change in capital. What type of data would be informative of the value this elasticity? Explain your answer and any assumptions you may need to reach your conclusion.

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Scenario 1: I think Lily’s board will choose a 4% estimate for bad debt expense. Earnings are high this year, so choosing the higher of the two choices (4% vs. 1%) of bad debt expense won’t be as harmful to earnings, on a percentage basis, versus if earnings had been low. Choosing the 4% will enable Lily Company to “load up the cookie jar” (as the title of this case suggests) so that if the indicated “unsettled business conditions ahead” materialize, earnings can be smoothed later since bad debt expense in the “bad” years can be made lower than it otherwise would have been.

Scenario 2: I think Lily’s board will choose a 1% estimate for bad debt expense. Since earnings are already quite low, the board will want to show as high a net income as possible, and this can be done, in part, by choosing the lower bad debt expense estimate. Since the board has reason to believe Lily Company’s operating performance will be better next year, choosing the lower bad debt expense shouldn’t adversely affect future years’ net income in a material way.

The main risk to Lily Company if the bad debt estimate is chosen using only the type of information given here is that financial statements may not accurately represent the company’s financials since cookie jar reserves are being used to smooth earnings over time. This can result in worse opinions of the company by potential investors as well as regulators

Present value of an Annuity of $1 in Arrears

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Cleves Company is considering two projects.

Cleves requires a minimum rate of return of 8%.

1. Darwins theory of evolution by natural selection is the logical outcome of 4 testable predictions or postulates. List and define them:

2. How is the word "fitness" defined by biologists compared to everyday use?

A 1 3 -kg mass is attached to a spring with stiffness 4 N/m. The damping constant for the system is 2 N-sec/m. The mass is displaced 1 2m to the left and given an initial velocity of 2 m/s to the right.

(a) Determine the equation of the motion of mass and express it in the form A e αt sin(βt + φ) by finding the constants A, α, β and φ in radians.

(b) Find the time t when the mass crosses the equilibrium position for the first time.

(c) Find the maximum displacement of the mass to the right.

Use this information for the next 4 questions

On December 31, Year 1, an entity revalued its machinery. On that date, the entity gathered the following information to aid the revaluation:

Historical cost                                    $500,000

Accumulated depreciation             140,000

Fair value                                              420,000

Question 1: How much is the revaluation gain or loss?

Question 2: Was the previous gain or loss reported in the income statement or other comprehensive income?

In year 2 the carrying value is $340,000 and the fair value is $200,000. Question 3: How much of the loss will be reported in other comprehensive income? Record a negative number.   

In year 2 the carrying value is $340,000 and the fair value is $200,000. Question 4: How much of the loss will be reported in the income statment? Record a negative number.  

Case Study There two sets of questions for this module, 1-4 and 5-8, for a total of eight questions. Using the concept of the epidemiological triangle to complete one of the following case studies: John J. is a school nurse at Jackson Elementary School, which was built in 1960. Nurse John has noticed that many students from Ms. Zee’s second grade class have come to the clinic complaining about coughing, sneezing, runny nose, and watery eyes. Nurse John has also observed that Steven Tea, the only asthmatic student in Ms. Zee’s class, has had more asthma attacks this year than he did last year. Because the rest of the school is not experiencing the same respiratory problems, Nurse John is concerned that something in Ms. Zee’s classroom is causing students to feel ill. Nurse John decides to visit Ms. Zee’s classroom. Upon entering the classroom, one of the few located in the school’s basement, John is struck by the powerful musty smell that inhabits the room. While talking to Ms. Zee, John learns that the classroom has “smelled bad for years,” and that students from previous years have complained about respiratory problems. Nurse John notes that Ms. Zee has stuffed a blanket at the base of the classroom’s small rectangular window near the ceiling because the window does not close completely. John suspects that Ms. Zee’s classroom walls are contaminated with mold. Upon further research, Nurse John learns that if water gets between the exterior and the interior of a building’s wall, mold can grow in the moist environment. This situation can occur as the result of construction defects in the building (e.g., leaky windows). Nurse John also learns that people who are exposed to extensive mold growth may experience allergic reactions, such as hay fever-like allergy symptoms, and that people who already have a chronic respiratory disease, such as asthma, may have trouble breathing when exposed to mold. Nurse John is concerned about the possible mold contamination effect on his asthmatic student, Steven.

1. Identify the agent, host, and environment in this case study, and describe how they interacted to bring about the occurrence of disease.

2. Is the mold contamination in Ms. Zee’s room a point-source pollutant or a non–point-source pollutant?

3. What can Nurse John do to learn more about indoor air quality (IAQ) and about what to do in case of mold?

4. What are some possible interventions that Nurse John could apply to address the mold contamination in Ms. Zee’s room?

This information is related to the primary care provider who orders a blood lead level, which comes back at 45 mcg/dL. On further investigation you discover that Billy’s home was built before 1950. At that time the home is tested, and the dust shows high lead levels. Due to Billy’s age and associated behaviors, such as hand to mouth activities, you determine that the lead dust in the home is a probable exposure, and that Billy should not return to the home. You must also consider multiple sources of exposures.

5.What other sources of exposure might exist?

6.What would you include in an assessment of this situation?

7.What prevention strategies would you use to resolve this issue? At the individual level? The population levels?

Suppose that there are two hats in front of you.

• Hat 1 contains 4 green balls and 6 orange balls.

• Hat 2 contains 3 green balls, 6 orange balls, and a purple ball.

• (a) Suppose you draw one ball from each hat. The outcome of interest is the colour of each of the drawn balls. How many elements are in the sample space of this experiment?

• (b) Write out the complete sample space for the experiment above.

• (c) What is the probability that you draw two balls of the same colour?

(d) Consider the following variables.

• Suppose you draw from Hat 1, without replacement, until you get a green ball. Let X be the number of draws until you get a green ball.

• Suppose you draw a ball from Hat 1 and a ball from Hat 2. Let Y be the number of drawn orange balls.

• Suppose you draw a ball from Hat 1 and a ball from Hat 2. Let Z be the number of drawn green balls.

• Suppose you draw 6 balls from Hat 2, with replacement. Let W be the number of times a green ball is drawn.

  Determine which of the above variables follow a binomial distribution. Also, for each binomially-distributed variable, determine the parameters n and p.

4) Block 1 of mass 200 kg slides over a frictionless surface with a velocity of 0.25 cm/s and strikes block 2 of mass 100 kg sliding to the left at 0.75 cm/s. What is the final velocity of each block if the collision is

A) Perfectly elastic?

B) Perfectly inelastic?

C) If there is an external force of 4000 kg*cm/s^2 to the right for 0.008 s during the perfectly inelastic collision?

1. Karl Corp. is preparing a schedule of cash receipts and disbursements for Year 4. Which of the following items should be included?

I.Borrowing funds from a bank on a note payable taken out in August Year 4 and agreeing co pay the principal and interest in July Year 5

II.Dividends declared in October Year 4 co be paid in January Year 5 co shareholders of record as of December Year 4

(A)I only, (B)II only ,(C)Both I and II, (D)Neither I nor II

2. Which of the following would NOT be included in a statement of cash receipts -and disbursements for Kraig Corporation in Year 2?

I.A purchase order issued in December Year 2 for items co be delivered in January Year 3

II.The amount of uncollectible customer accounts for Year 2

(A)I only, (B)II only ,(C)Both I and II , (D)Neither I or II

3. Sandra Inc. forecasted first quarter sales of I0,000 units, second quarter sales of 15,000 units, third quarter sales of 14,000 units, and fourth quarter sales of 17,000 units at $4 per unit.. Past experience has shown chat 70 percent of the sales will be in cash and 30 percent will be on credit. All credit sales are collected in the following quarter, and none are collectible. What amount of cash is forecasted to be collected in the second quarter?

(A) $54,000 (B) $42,000 (C) $30,000 (D) $28,500