Consider a static (one-period), closed economy with one representative consumer, one representative firm, and a government. The level of capital K and government expenditures G in the economy are both fixed exogenously. The government levies a lump sum tax T in order to fund its purchases, and the government budget must balance. Suppose the price of consumption is normalized to one (p = 1). The representative consumer has 24 hours of time available (h = 24), which she can use only for labor or leisure. She re- ceives labor income, profits from the firm (π), and pays lump sum taxes. The consumer’s utility function isu(c,l)=1/3 ln(c)+2/3 ln(l),andthefirm’sproductionfunctionisY =zKθN1−θ.

1. List the requirements that must be satisfied to achieve competitive equilibrium in this economy.

2.Suppose z=10,θ=1/4,K=96 and the wage is w=15 per hour of work. Solve the firm’s profit maximization problem for N∗. Compute the firm’s output Y and profit π at the optimal choice of N∗.

1. Consider the production possibility frontier for a simple two-good (closed) economy. Quantities of good x produced are plotted on the horizontal axis. Quantities of good y produced are plotted on the vertical axis. Suppose that the production of both x and y depends only on labor input and that the production functions for these goods are: x = f(l_x) = l_x and y = f(ly) = l_y. Total labor supply is limited by: l_x + l_y = 100. The typical individual’s utility function is given by U(x,y) = x·y. The equilibrium price ratio p_x*/p_y* is equal to [r]. (NOTE: Write your answer in number format, with 2 decimal places of precision level; do not write your answer as a fraction. Add a leading zero and trailing zeros when needed. HINTS: First derive the production possibility frontier equation.)

3. Consider a closed economy named ‘Seewhyland’ which always keeps its trade with foreign countries in balance. It is dollarized like Ecuador or Zimbabwe.

People in this economy tend to save 25 cents for every dollar increase in their disposable income and spend $100B when there is no disposable income.

Also, you were also given the following data about the economy:

Government budget surplus = $100B;

Government purchase = $300B;

Private saving = $250B.

Based on this information, please answer the following questions.

3.1. Set up the consumption function of this economy. Then using the goods market equilibrium condition, compute the private investment (I*) of this country when the goods market is in equilibrium. Then, solve for the equilibrium real GDP (Y*), the equilibrium consumption (C*).

3.2. Explain what happens to the equilibrium real GDP when the government decreases its purchase and tax collection by $100B.

A closed economy has full employment output of 6000. Government purchases, G, are 1200. Desired consumption and desired investment are:

Cd= 3600 - 2000r + 0.10Y, and

Id = 1200 - 4000r

where Y is output and r is the real interest rate.

a. Find an equation relating desired national saving, Sd, to r and Y.

b. Using the goods market equilibrium condition, find the real interest rate that clears the goods market. Assume the output equals full-employment output.

c. Government purchases rise to 1440. How does this increase change the equation describing desired national saving? Show the change graphically. What happens to the market clearing real interest rate?

Hubley Inc. uses a job-order costing system in which any underapplied or overapplied overhead is closed out to cost of goods sold at the end of the month. The company has provided the following data for August:

The cost of goods sold that appears on the income statement for August and that has been adjusted for any underapplied or overapplied overhead is closest to:

$237,000

$233,000

$229,000

$214,000

Janice Watts, a 24-year-old female client, is admitted after a motor vehicle crash for a closed reduction of the left fibula and tibia fractures and application of a cylinder plaster cast because of the edema present. The client had previously used crutches and has a pair of crutches. She will be non–weight-bearing. The vital signs are T, 98° F; BP, 120/70 mm Hg; HR, 78 beats/ minute; RR, 20 breaths/minute. She stated the pain is relieved after the narcotic analgesic was provided 30 minutes earlier and that she is comfortable. The client had suffered a concussion as well and will remain in the hospital for the next 24 hours. The client has no known allergies. She has no previous hospitalizations and does not take any medications. The LPN/LVN will need to take care of the client after she has the cast applied in the casting room.

Questions:

1. What nursing management is needed right after a plaster cast has been applied? (Learning Objective 1)
2. Four hours after the client arrived to the orthopedic floor she complains that her leg and foot hurts more than before the cast was applied. She rates the pain 10/10 despite having pain medication 30 minutes earlier. She has numbness and tingling in the leg. What is probably happening? (Learning Objective 3)
3. What should the LPN/LVN do? (Learning Objective 3)

On Jan 11, 2012, you purchased 100 shares of Apple, Inc., which closed at $167.09. First, you write one contract of the March 2012 $175 call at $3.65. Next, you buy one contract of the March 2012 $160 puts, which are trading at $4.50. What is your profit/ loss diagram of this protective collar? (Please mark ALL the critical points, including the breakeven point, maximum gain, and maximum loss)

Assume a closed economy. Suppose you have the following information

regarding Country A: Long run real GDP growth rate = 2.5%, natural rate of

unemployment = 5%, long run inflation rate = 2.5%. Currently, real GDP is

growing at 1.4%, unemployment is at 6.4%, and inflation is .7%.

a. Using the IS-LM model and AD-AS, describe fully the current state of the

economy both graphically and in words.

b. What monetary policy measures would you advocate? Why? How would

they work and what would they do in the short run? In the long run?

c. What fiscal policy measures would you advocate? Why? How would

they work and what would they do in the short run? In the long run?

Question #5 A. [1 point] Is Ampere’s valid for all closed paths surrounding current carrying conductor? If not, why? B. [4 points] Two identical semicircular arcs have radii ?1 = 7.8 ?? and ?2 = 5.8 ?? carry current ? = 0.281 ? and share the same center of curvature, C. (a) What are the magnitude and direction of net magnetic field at C? (b) If the direction of the current is reversed, what effect does it have on the magnetic field?