Assume that an effective government-imposed price on a particular good. The price is set below equilibrium. Now, the imposed price is removed.

True, False, or Uncertain: Consumer spending on the good will increase only if demand is inelastic. Explain your answer.

1. Explain, using Keynes’s concept of the marginal efficiency of capital, how it is possible foe investment spending to decline, even though the market rate of interest remains unchanged.

2. As the classical school is to Isaac Newton, the Institutionalist school is to whom? Explain.

Assume: a = 150, b = .75, I = 200, Yf = 1600

The equilibrium level of output and income is?

The value of consumption at the equilibrium level of output and income is?

Aggregate spending at full employment is?

The value of savings at full employment is?

The recessionary gap is?

Can you balance the budget? What types of tradeoffs did you encounter when making decisions on allocating or cutting federal spending? How easy is it to balance the budget? Which groups are hurt and which are helped by your changes?

using the IS-LM and the AD-LRAS-SRAS figures what happens to real interest rate, output and prices if there is a temporary increase in government purchases for military purposes. Will it matter whether the temporary increase in military spending is funded by taxes or by borrowing?

Show by graphing how a change (upward shift or downward shift) in each of the following factors would alter the shape of the total product curve for medical care. A. An increase of education spending. B. An improvement in lifestyle. C. An improvement in the environment.

Segmented Reporting and Variances

Pittsburgh-Walsh Company (PWC) is a manufacturing company whose product line consists of lighting fixtures and electronic timing devices. The Lighting Fixtures Division assembles units for the upscale and mid-range markets. The Electronic Timing Devices Division manufactures instrument panels that allow electronic systems to be activated and deactivated at scheduled times for both efficiency and safety purposes. Both divisions operate out of the same manufacturing facilities and share production equipment.

   PWC’s budget for the year ending December 31, 20x1, follows and was prepared on a business segment basis under the following guidelines:

Variable expenses are directly assigned to the incurring division.

Fixed overhead expenses are directly assigned to the incurring division.

The production plan is for 8,000 upscale fixtures, 22,000 mid-range fixtures, and 20,000 electronic timing devices. Production equals sales.

   PWC established a bonus plan for division management that required meeting the budget’s planned operating income by product line, with a bonus increment if the division exceeds the planned product line operating income by 10 percent or more.

   Shortly before the year began, the CEO, Jack Parkow, suffered a heart attack and retired. After reviewing the 20x1 budget, the new CEO, Joe Kelly, decided to close the lighting fixtures mid-range product line by the end of the first quarter and use the available production capacity to grow the remaining two product lines. The marketing staff advised that electronic timing devices could grow by 40 percent with increased direct sales support. Increases above that level and increasing sales of upscale lighting fixtures would require expanded advertising expenditures to increase consumer awareness of PWC as an electronics and upscale lighting fixtures company. Kelly approved the increased sales support and advertising expenditures to achieve the revised plan. Kelly advised the divisions that for bonus purposes the original product-line operating income objectives must be met, but he did allow the Lighting Fixtures Division to combine the operating income objectives for both product lines for bonus purposes.

   Prior to the close of the fiscal year, the division controllers were furnished with preliminary actual data for review and adjustment, as appropriate. These preliminary year-end data reflect the revised units of production amounting to 12,000 upscale fixtures, 4,000 mid-range fixtures, and 30,000 electronic timing devices and are presented as follows:

   The controller of the Lighting Fixtures Division, anticipating a similar bonus plan for 20x2, is contemplating deferring some revenues to the next year on the pretext that the sales are not yet final and accruing in the current year expenditures that will be applicable to the first quarter of 20x2. The corporation would meet its annual plan, and the division would exceed the 10 percent incremental bonus plateau in 20x1 despite the deferred revenues and accrued expenses contemplated.

Required:

1. Select one benefits that an organization realizes from segment reporting. Evaluate segment reporting on a variable-costing basis versus an absorption-costing basis.
It highlights the profitability of each segment

2. Calculate the contribution margin, contribution margin volume, and sales mix variances. Enter your answers in dollars, rather than in thousands of dollars For example, enter "750,000" rather than "750". If required, round calculations to the nearest cent.

Segmented Reporting and Variances

Pittsburgh-Walsh Company (PWC) is a manufacturing company whose product line consists of lighting fixtures and electronic timing devices. The Lighting Fixtures Division assembles units for the upscale and mid-range markets. The Electronic Timing Devices Division manufactures instrument panels that allow electronic systems to be activated and deactivated at scheduled times for both efficiency and safety purposes. Both divisions operate out of the same manufacturing facilities and share production equipment.

   PWC’s budget for the year ending December 31, 20x1, follows and was prepared on a business segment basis under the following guidelines:

1. Variable expenses are directly assigned to the incurring division.
2. Fixed overhead expenses are directly assigned to the incurring division.
3. The production plan is for 8,000 upscale fixtures, 22,000 mid-range fixtures, and 20,000 electronic timing devices. Production equals sales.

   PWC established a bonus plan for division management that required meeting the budget’s planned operating income by product line, with a bonus increment if the division exceeds the planned product line operating income by 10 percent or more.

   Shortly before the year began, the CEO, Jack Parkow, suffered a heart attack and retired. After reviewing the 20x1 budget, the new CEO, Joe Kelly, decided to close the lighting fixtures mid-range product line by the end of the first quarter and use the available production capacity to grow the remaining two product lines. The marketing staff advised that electronic timing devices could grow by 40 percent with increased direct sales support. Increases above that level and increasing sales of upscale lighting fixtures would require expanded advertising expenditures to increase consumer awareness of PWC as an electronics and upscale lighting fixtures company. Kelly approved the increased sales support and advertising expenditures to achieve the revised plan. Kelly advised the divisions that for bonus purposes the original product-line operating income objectives must be met, but he did allow the Lighting Fixtures Division to combine the operating income objectives for both product lines for bonus purposes.

   Prior to the close of the fiscal year, the division controllers were furnished with preliminary actual data for review and adjustment, as appropriate. These preliminary year-end data reflect the revised units of production amounting to 12,000 upscale fixtures, 4,000 mid-range fixtures, and 30,000 electronic timing devices and are presented as follows:

   The controller of the Lighting Fixtures Division, anticipating a similar bonus plan for 20x2, is contemplating deferring some revenues to the next year on the pretext that the sales are not yet final and accruing in the current year expenditures that will be applicable to the first quarter of 20x2. The corporation would meet its annual plan, and the division would exceed the 10 percent incremental bonus plateau in 20x1 despite the deferred revenues and accrued expenses contemplated.

Required:

1. Select one benefits that an organization realizes from segment reporting. Evaluate segment reporting on a variable-costing basis versus an absorption-costing basis.
It highlights the profitability of each segment

2. Calculate the contribution margin, contribution margin volume, and sales mix variances. Enter your answers in dollars, rather than in thousands of dollars For example, enter "750,000" rather than "750". If required, round calculations to the nearest cent.

Dom, age 9, made the Alliance travel soccer team and was excited to be able to play right wing. At 5’3” (160 cm) and 105 lbs. (48 kg), he was taller and thinner than most of his teammates. Practices began August 15, and his first away game was against Midwest United in Grand Rapids. Dom had lost weight in the past month, and he always seemed to be hungry and thirsty. He had an appointment with the eye doctor in the next week because he told his mother that sometimes the blackboard in the classroom was blurry. Last week, he had a cold, followed by a “stomach bug.” He seemed to be better, and then now he said he just had “butterflies.” These must just be “nerves for his big game”, thought his mother. She was worried about him getting dehydrated in the late summer heat and developing muscle cramps, so she had him eat a banana and packed extra coconut water for him. “This is new, Dom”, she said. “It tastes great, and it has potassium, which is really good for you”.

Dom played well during the first quarter, defending five shots on goal and getting a goal himself. He was hot, and sweaty, so he drank a bottle of the coconut water and went out for the second quarter. He began to feel tired and a little queasy, and his stomach began to hurt. Then he began to cough and started to stagger. His coach noticed something was wrong, so he brough him to the bench. Dom’s teammate, Cameron mentioned that Dom’s breath smelled a little fruity. “Have some more water, Dom” the coach said. After slowly sipping a second bottle of coconut water, Dom stood up, clutched his stomach and then passed out. “He’s breathing funny!” shouted the coach. He called 911. Dom’s pulse was hard to feel, so the coach put his head on Dom’s chest and then could tell that it was beating very fast. The paramedics arrive in a few minutes and began to work on Dom. They checked his vital signs and used a glucometer to check his blood glucose level. It was 361 mg/dL. They immediately gave him 10 units of IV insulin bolus and transported him to the emergency department.

Questions

1. What disease did Dominick likely develop? What leads you to this conclusion?
2. Describe the pathophysiology of Dom’s disease, and explain how it differs from other forms of the disease.
3. What are the early symptoms of this disease in children?
4. What is the epidemiology of this disease in children? Discuss genetic and environmental factors that play a role in the development of the disease.
5. What complications of this disease does Dom now have? What is the pathophysiology of this complication and possible consequences (sequelae)?
6. What are four goals in treating Dom for this complication? How will Dom be treated? Explain how his treatment will affect the pathophysiology of his disease.
7. What is the composition of coconut water? What electrolyte imbalance could Dom have experienced because he consumed significant amounts for rehydration?
8. When Dom arrived at the emergency department, he was assessed for cerebral edema. What is cerebral edema, and why was he at risk for it? How would he be treated to reduce this risk?
9. Make a concept map of the triggers, symptoms and the pathophysiology of Dom’s problem.

Writhe these answers first, and then give the explanation please, thank you.

(1)In response to the financial crisis, the Fed implemented quantitative easing programs mainly to

A   keep inflation from falling.
B   ensure that banks continued to make credit available to the economy.
C   reduce interest rates.
D   reduce the quantity of reserves.

(2)Central bank independence refers to central banks'

A   ability to operate without the financial support of the government.
B   power to negotiate with other central banks or governments in the world.
C   actions above the law.
D   power to make monetary policy decisions without interference from the government.

(3)The Phillips curve captures a

A   negative relationship between the inflation rate and the unemployment rate.
B   negative relationship between real GDP and the unemployment rate.
C   positive relationship between real GDP and the unemployment rate.
D   positive relationship between the inflation rate and the unemployment rate.

(4)The Fed changes the federal funds rate by

A   changing the supply of reserves in the overnight market.
B   changing the interest rates that banks charge consumers.
C   changing banks' reserve requirements.
D   directing banks to charge each other a new rate.

(5)Suppose that the Fed aims at fixing the interest rate. The Fed will respond to an increase in money demand with

• A no policy action.
• B open market purchases.

• C open market sales in some markets and open market purchases in other markets.

• D open market sales.