Short Questions: Select true answer and explain why it is true.

i) If an economist wishes to determine whether there is evidence that mean family income in a community equals $450,000

A) either a one-tail or two-tail test could be used with equivalent results.

B) a one-tail test should be utilized.

C) a two-tail test should be utilized.

D) None of the above

ii)A professor of statistics wants to test that the average amount of money a typical college student spends per day during spring break is over $70. Based upon previous research, the population standard deviation is estimated to be $17.32. The professor surveys 35 students and finds that the mean spending is $72.43. Which of the following statements is most accurate?

A) fail to reject the null hypothesis at α ≤ 0.10

B) reject the null hypothesis at α = 0.10

C) reject the null hypothesis at α = 0.05

D) reject the null hypothesis at α = 0.01

III) Find the critical value and rejection region for the type of chi-square test with sample size n and level of significance α.

Two -tailed test,

n = 25, α = 0.10

Chapter 12 and Appendix B are an introduction to the Keynesian Theory authored by John Maynard Keynes (note, his name is pronounced "Canes" like the thing you need to walk if you are old!). He revolutionized the way we view the overall economy as well as the way we study economics. His theory changed the entire approach. Prior to Keynes, the focus was on the study of “microeconomics” and specifically the supply side of the market. Because of him we now look at Macroeconomics, and more precisely on consumption and income. He introduced the concepts of the Marginal Propensity to Consume (MPC) and the Marginal Propensity to Save (MPS), which led to the Consumption Function (C = a + bY). This brings us to some interesting observations…Why do rich people have a higher marginal propensity to save than poor people? In what ways can households spend more than they have in income? (Note: Spending in excess of current income is called dissaving.)  Where do they get the money to finance their extra consumption? Can everyone dissave at the same time? Do you think there is a relationship between "dissaving" and the most recent economic crisis (2007 - 2009)? What is the relationship?

Orville Company’s standard and actual costs per unit are provided below for the most recent period. During this time period 1200 units were actually produced.  

For simplicity, assume there was no inventory of materials at the beginning or end of the period.

Required:

Given the information above, compute the following variances. Also indicate if the variances are favorable or unfavorable.

1. Materials price variance                                                                         (3 marks)

2. Materials quantity variance                                                                   (3 marks)

3. Direct labour rate variance                                                                    (3 marks)

4. Direct labour efficiency variance                                                            (3 marks)

5. Variable overhead efficiency variance                                                    (3 marks)

                     6.        Variable overhead spending variance                                                                            (3

class: State and Local Finance

1.state and local government face three fundamental fiscal choices. please list these choices, and using an examples in specified government program, explain how these choice interact with each other, if at all

2."if school expenditures are selected by a majority vote,then most of the voters in the district will be perfectly happy with the selected amount of spending." Evaluate this statement.

3.richard musgrave has provided us with a 3-part defining state of the "role" of government. please describe each, and provide an example FOR EACH ROLE.

4.state's constitutions provide guidance regarding fiscal policy, and provide the operating parameters under which a budget is developed. describe the stages of the budget process in new york state, including relevant time period for specific activities. include a discussion of the player(executive/legislature) and their role in the process.

5.Government expenditures can be measured by examining the direct costs, as well as the results from the respective productions for direct outputs and consumer outputs. please describe these two relationships, and using a public good or serice provide examples of inputs used in the services and the types of outputs that could be measured.

Your 20 year-old son is still living at home. He has a job at a local fast-food restaurant and makes enough money to pay for his car and to provide his own spending money. He does not contribute to household expenses or buy his own clothing. He was a B student in high school and does not want to work in the restaurant as a career, but he is not sure what he wants to do. He spends most of his free time with his friends from high school. Although you do not object to your son living with you and he is helpful around the house, you are concerned that he is delaying making some important choices.

Describe issues that might be relevant in this case scenario, such as the son’s levels of cognitive and moral development (Piaget, Erikson, Kohlberg), issues relevant to choosing a career or job (Marcia), and ways that as parents one can foster the development of autonomy and independence in children. You need to explain your answer in relation to the theories described in the readings. In your own opinion, do you think this young man is in a good position as he enters adulthood? Why or why not?

Exercise 10-2 Direct Labor Variances [LO10-2]

SkyChefs, Inc., prepares in-flight meals for a number of major airlines. One of the company’s products is grilled salmon in dill sauce with baby new potatoes and spring vegetables. During the most recent week, the company prepared 6,600 of these meals using 1,950 direct labor-hours. The company paid its direct labor workers a total of $27,300 for this work, or $14.00 per hour.

According to the standard cost card for this meal, it should require 0.30 direct labor-hours at a cost of $13.00 per hour.

Required:

1. What is the standard labor-hours allowed (SH) to prepare 6,600 meals?

2. What is the standard labor cost allowed (SH × SR) to prepare 6,600 meals?

3. What is the labor spending variance?

4. What is the labor rate variance and the labor efficiency variance?

(For requirements 3 and 4, indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values. Do no round intermediate calculations.)

Exercise 10-2 Direct Labor Variances [LO10-2]

SkyChefs, Inc., prepares in-flight meals for a number of major airlines. One of the company’s products is grilled salmon in dill sauce with baby new potatoes and spring vegetables. During the most recent week, the company prepared 6,600 of these meals using 1,950 direct labor-hours. The company paid its direct labor workers a total of $27,300 for this work, or $14.00 per hour.

According to the standard cost card for this meal, it should require 0.30 direct labor-hours at a cost of $13.00 per hour.

Required:

1. What is the standard labor-hours allowed (SH) to prepare 6,600 meals?

2. What is the standard labor cost allowed (SH × SR) to prepare 6,600 meals?

3. What is the labor spending variance?

4. What is the labor rate variance and the labor efficiency variance?

(For requirements 3 and 4, indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values. Do no round intermediate calculations.)

What potential sources of error might be associated with the following situations?

b. A telephone survey of big city voters finds that most respondents do not like negative political ads—that is, advertising by one political candidate that criticizes or exposes secrets about the opponent’s “dirty laundry.” Researchers conclude that negative advertising should not be used.

c. A survey accessed through Instagram produces results ranking Apple Macbooks as far superior to other PCs for business applications. A retailer decides to reduce inventory of PCs other than Macbooks.

d. Researchers who must conduct a 45-minute personal interview offer $175 to each respondent because they believe that people who will sell their opinions are more typical than someone who will talk to a stranger for free for 45 minutes. Management uses the results to adjust their services offering.

e. A company’s sales representatives are asked what percentage of the time they spend traveling, talking on the telephone, participating in meetings, working on the computer, in training, and filling out reports for management. The survey is conducted via the company’s email network. Management concludes that sales reps are not spending enough time performing selling in the field.

Economists believe people should get paid according to the value of the output they produce. This is fairly easy to determine when you produce something physical, such as cupcakes. However, it becomes very difficult to measure if you are providing a service (perhaps teaching, or you're a doctor treating a medical condition).

Regardless of how you measure the value of the output, the more productive you are the more valuable you are in the market to potential employers. This is the reason many economists are against the minimum wage and are for programs that contribute to improving an employee's productivity (such as education and training). There is surprising agreement with just how important education is in minimizing income inequality among economists.

Given this information, what would you recommend to policy makers? What do you think about various school districts having vastly different access to resources around the state, or even the country? Recall, spending more money on education does have an opportunity cost - be sure to include that in your answer.

Your answer should demonstrate the knowledge you learned over the course of the semester. Most require 300-400 words to adequately express their ideas.