1.Discuss the fiscal and monetary policy measures that have been put in place to deal with the effects of COVID-19. Use graphs to explain the different policies and explain how you think they will affect output and employment in the short and the long run.

2. Would the impact be different if the country was under a fixed exchange rate regime?

3. Would you recommend a fixed exchange rate regime in the context of COVID-19, seeing how the rand has suffered?

The following table summarizes the weights in kg of 40 students in this class:

Determine a 10% random sample of the heights using the following three methods, and explain how you selected them.  You may use a deck of cards, a random number table, RAND() in Excel or some other method to generate random numbers.

a. Random sampling

b. Systematic Random Sampling

c. Stratified Random Sampling

d. What is the sampling error for each method?

Question (Second-Degree Price Discrimination)

A monopolist faces two types of consumers. The inverse demand function of each type-1 consumer is P! = 100 − 2Q, while the inverse demand function of each type-2 consumer is:!P = 80 − Q. The firm’s cost function is given by: !C(Q) = 200 + 10Q.

Suppose first that the firm is able to tell whether a consumer is of type-1 or type-2 (e.g. by checking some form of ID). Suppose also that the firm uses a two-part tariff with each type.

(a) Calculate the fixed fee and the price per unit for each type of consumers. {Hint: Draw diagrams to help you work through the problems.}

Suppose now that the firm cannot tell whether a consumer is of type-1 or type-2. Therefore, suppose that the firm decides to offer the following packages:

PACKAGE 1: 50 units packaged together for a total price of $2,500 PACKAGE 2: 40 units packaged together for a total price of $2,200

(b) For each package and each consumer-type, calculate willingness-to-pay (area under the respective demand curve) and associated consumer surplus (given price of each package).

(c) Comparing the consumer surplus enjoyed by each consumer-type for each package, decide which package will be preferred by which consumer-type.

(d) Assuming that there are 100 consumers of type-1 and 50 consumers of type-2, calculate the monopolist’s profits.

Both the husband and wife have normal vision. The wife gives birth to a colour-blind daughter.
Is it more likely that the father is colour blind or has normal vision? What does this lead you
to deduce about the girl’s parents genome?

BWT, Inc. shows the following data in its financial statements at the end of the year. Assume all securities were outstanding for the entire year. 6.125% convertible bonds, convertible into 33 shares of common stock. Issue price $1,000, 100 bonds outstanding. 6.25% convertible preferred stock, $100 par, 2,315 shares outstanding. Convertible into 3.3 shares of common stock, Issue price $100. 8% convertible preferred stock, $100 par, 2,572 shares outstanding. Convertible into 5 common shares, Issue price $80. 9,986 warrants are outstanding with an exercise price of $38. Each warrant is convertible into 1 share of common. Average market price of common is $52.00 per share. Common shares outstanding at the beginning of the year were 40,045. Net Income for the period was $200,000, while the tax rate was 40%. What are the basic and diluted EPS for the year? Basic EPS Diluted EPS

Varzesh is a sports equipment company with its corporate headquarters in country A and has three wholly owned subsidiaries in countries B, C and D. The corporate income taxes are 21%, 25%, 29% and 22% for countries A, B, C, and D respectively. Varzesh is going to manufacture a new sports ball called Toop in, and only in, one of the three countries: B, C, or D. The manufacturing cost is $100, and it will be sold in equal quantities in all four countries for $370. The transfer price for Toop is $320. There are no other costs or revenues.

1 - Which country is the best choice to manufacture the Toop in order to minimize taxes paid globally?

2 - If Varzesh sells only one unit in each country, then what is the minimum total tax amount paid globally? Enter your answer rounded to the first decimal place.

3 - If the customs authority pushes Varzesh to fix the transfer price at $260, then which country is the best choice to manufacture the Toop in order to minimize taxes paid globally?

4 - If the transfer price is equal to $260, what is the minimum total tax amount paid globally if Varzesh sells only one unit in each country? Enter your answer rounded to the first decimal place.

Varzesh is a sports equipment company with its corporate headquarters in country A and has three wholly owned subsidiaries in countries B, C and D. The corporate income taxes are 21%, 25%, 29% and 22% for countries A, B, C, and D respectively. Varzesh is going to manufacture a new sports ball called Toop in, and only in, one of the three countries: B, C, or D. The manufacturing cost is $100, and it will be sold in equal quantities in all four countries for $370. The transfer price for Toop is $320. There are no other costs or revenues.

1 - Which country is the best choice to manufacture the Toop in order to minimize taxes paid globally?

2 - If Varzesh sells only one unit in each country, then what is the minimum total tax amount paid globally? Enter your answer rounded to the first decimal place.

3 - If the customs authority pushes Varzesh to fix the transfer price at $260, then which country is the best choice to manufacture the Toop in order to minimize taxes paid globally?

4 - If the transfer price is equal to $260, what is the minimum total tax amount paid globally if Varzesh sells only one unit in each country? Enter your answer rounded to the first decimal place.

CASELET 01
Mr. and Mrs. Sharma went to Woodlands Apparel to buy a shirt. Mr. Sharma did not read the price tag
on the piece selected by him. At the counter, while making the payment he asked for the price. Rs. 950
was the answer.
Meanwhile, Mrs. Sharma, who was still shopping came back and joined her husband. She was glad
that he had selected a nice black shirt for himself. She pointed out that there was a 25% discount on
that item. The counter person nodded in agreement.
Mr.Sharmawasthrilled tohearthat “ItmeansthepriceofthisshirtisjustRs. 712.That‟sfantastic”,saidMr.Sharma.
He decided to buy one more shirt in blue color.
In no time, he returned with the second shirt and asked them to be packed. When he received the cash
memo for payment, he was astonished to find that he had to pay Rs. 1,900 and Rs. 1,424.
Mr. Sharma could hardly reconcile himself to the fact that the counter person had quoted the
discounted price which was Rs. 950. The original price printed on the price tag was Rs. 1,266. He paid
and left in embarrassment, Now he wants to return those shirts and claim back his money.
Questions
1. As sales person, write an email response to the management for the situation happened on the
counter and explain that there was no complaint or query raises by the customer at the time of
payment. ?

ans the above question in detail

First column standard price

second column Deluxe price

fixed cost 26,000 per month

1. Determine Biscayne’s new break-even point in each of the following independent scenarios:

a. Product mix is 40/60.

b. Sales price increases on both models by 20 percent. (Assume a product mix of 50/50.)

c. Fixed costs increase by $5,200. (Assume a product mix of 50/50.)

d. Variable costs increase by 30 percent. (Assume a product mix of 50/50.)

Prompt

Ortelere, a retired teacher, has built up a substantial amount of funds in her retirement plan before she retired because of "involutional psychosis" (a form of mental illness).

She has previously specified that a lowered monthly retirement benefit would be paid to her so that her husband would get some benefit from the retirement plan if she died before he did.  After her mental problems began, she changed her payout plan and borrowed from the pension fund (....ok, lady, you're getting the money based on 'your' decision! We have relied on 'your' decision 'today'. Positions are changing, parties will be 'affected' based on 'representations'.)

As a consequence of the changes she made, her husband lost his rights to benefit. Two months after she made the changes, she died. The husband sued to reverse the changes his wife made, claiming she was not of sound mind when she made them.

• Will the changes in the plan be voided? Previously in Chapter 10 you only have the concept of 'consideration' and in chapter 11 we have 'competency'. Even if you argue competency, don't you find this very difficult to prove?
• Explain your answer. This is a good one, have some fun with this. You 'could' argue both sides, who has the stronger position?..... no free lunch, eh? Going to need an 'empathetic judge'?