One of the most well-known policy approaches to address the drug problem in the United States has been the “war on drugs” declared by President Nixon in 1971. Review the drug control efforts following this declaration and through the year 2000.

Respond to the following:

How did the “war on drugs” influence subsequent drug control policy in the United States?

Upon reflection of the costs and consequences of this drug war, was this an effective approach to dealing with the country’s drug problem?

Provide your sources.

(2)   In the United States, more than 50% of banks have less than $100 million in assets: T or F?
(3)   In 1980, there were 14,404 commercial banks in the United States, but now there are 5,116 in 2020: T or F?
(4)   The U.S. banking industry is highly concentrated compared with other industries in the United States or compared with the banking industry in other countries: T or F?
(5)   The U.S. banking industry is one of the most heavily regulated industries in the U.S.: T or F?
(6)   The importance of banks as a source of funds to nonfinancial borrowers has shrunk dramatically in the U.S. over the past five decades or so: T or F?   
(7)   Currently the United States has about five banks per million people, compared with slightly more than one per million in Japan and fewer than one per million in Canada: T or F?
(8)   The dual banking system was created by the National Bank Act of 1863: T or F?
(9)   All national banks are required to be member banks of the Federal Reserve System: T or F?
(10)   State banks are not required to become members of the Federal Reserve System, and currently only one in four state banks is a member: T or F?

1.Potatoes are available in the United States and in Mexico. Income has risen by 10 percent in each country. The demand for potatoes has increased by 2 percent in the United States and by 17 percent in Mexico. What can be concluded?

A. Potatoes are normal goods in both countrie

B. Potatoes are normal goods in the United States but inferior goods in Mexico.

C. Potatoes are inferior goods in the United States but normal goods in Mexico.

D. Potatoes are inferior goods in both countries.

2.Beer and pretzels are complements. There is a decrease in the supply of beer. What would we expect to see?

A. An increase in the price of beer and an increase in the demand for pretzels

B. An increase in the price of beer and a decrease in the demand for pretzels

C. A decrease in the price of beer and an increase in the demand for pretzels

D. A decrease in the price of beer and a decrease in the demand for pretzels

3.Which of the following is true of the movement along a demand curve?

A. Changes in price on quantity demanded do not take the form of a movement along the demand curve

B. The effect of a change in price on quantity demanded takes the form of a movement along the demand curve.

C. The shift of any “other” variables does not constitute movement along a demand curve.

D. Changes in income do not take the form of a movement along the demand curve

Researchers interviewed street prostitutes in Canada and the United States. The mean age of the 100 Canadian prostitutes upon entering prostitution was 18 with a standard deviation of six. The mean age of the 130 United States prostitutes upon entering prostitution was 20 with a standard deviation of eight. Is the mean age of entering prostitution in Canada lower than the mean age in the United States? Test at a 1% significance level.

NOTE: If you are using a Student's t-distribution for the problem, including for paired data, you may assume that the underlying population is normally distributed. (In general, you must first prove that assumption, though.)

• Part (a)

  State the null hypothesis.

  H₀: μ_C ≠ μ_US

  H₀: μ_C = μ_US

      

  H₀: μ_C < μ_US

  H₀: μ_C > μ_US

• Part (b)

  State the alternative hypothesis.

  H_a: μ_C > μ_US

  H_a: μ_C = μ_US

      

  H_a: μ_C ≠ μ_US

  H_a: μ_C < μ_US

• Part (c)

  In words, state what your random variable

  X_C − X_US

  represents.

  X_C − X_US

  represents the mean difference in the age of entering prostitution in Canada and the United States.

  X_C − X_US

  represents the mean age of entering prostitution in Canada and the United States.    

  X_C − X_US

  represents the difference in the ages of entering prostitution in Canada and the United States.

  X_C − X_US

  represents the difference in the mean age of entering prostitution in Canada and the United States.

• Part (d)

  State the distribution to use for the test. (Enter your answer in the form z or t_df where df is the degrees of freedom. Round your answer to two decimal places.)

• Part (e)

  What is the test statistic? (If using the z distribution round your answer to two decimal places, and if using the t distribution round your answer to three decimal places.)
  ---Select--- z t =

• Part (f)

  What is the p-value?

  p-value < 0.0100.010 < p-value < 0.050    0.050 < p-value < 0.100p-value > 0.100

  
  
  Explain what the p-value means for this problem.If

  H₀

  is false, then there is a chance equal to the p-value that the sample mean age of entering prostitution in Canada is at least 2 more than the sample mean age of entering prostitution in the United States.If

  H₀

  is true, then there is a chance equal to the p-value that the sample mean age of entering prostitution in Canada is at least 2 less than the sample mean age of entering prostitution in the United States.    If

  H₀

  is true, then there is a chance equal to the p-value that the sample mean age of entering prostitution in Canada is at least 2 more than the sample mean age of entering prostitution in the United States.If

  H₀

  is false, then there is a chance equal to the p-value that the sample mean age of entering prostitution in Canada is at least 2 less than the sample mean age of entering prostitution in the United States.

• Part (g)

  Sketch a picture of this situation. Label and scale the horizontal axis and shade the region(s) corresponding to the p-value.

• Part (h)

  Indicate the correct decision ("reject" or "do not reject" the null hypothesis), the reason for it, and write an appropriate conclusion.(i) Alpha (Enter an exact number as an integer, fraction, or decimal.)
  α =
  
  (ii) Decision:

  reject the null hypothesisdo not reject the null hypothesis    

  
  (iii) Reason for decision:

  Since p-value < α, we do not reject the null hypothesis.Since p-value > α, we do not reject the null hypothesis.    Since p-value > α, we reject the null hypothesis.Since p-value < α, we reject the null hypothesis.

  
  (iv) Conclusion:

  There is sufficient evidence to show that the mean age of entering prostitution in Canada is lower than the mean age in the United States.There is not sufficient evidence to show that the mean age of entering prostitution in Canada is lower than the mean age in the United States.    

• Part (i)

  Explain how you determined which distribution to use.

  The standard normal distribution will be used because the samples involve the difference in proportions.The t-distribution will be used because the samples are dependent.    The standard normal distribution will be used because the samples are independent and the population standard deviation is known.The t-distribution will be used because the samples are independent and the population standard deviation is not known.

”Socioeconomic inequalities in low birth weight are larger in the US than in the United Kingdom, Canada, and Australia, and income inequality is on the rise globally, with the United States leading the way.” Why is this? Why is the US leading the way in disparities? Is our healthcare system to blame?

Recording Entries under the Fair Value Option—Equity Method

Assume that Fireside Inc. purchased 30% of the common stock of Theater Supplies Corporation on January 1, 2020, for $270,000. Fireside Inc. elected to account for its investment using the fair value option. During the year, Fireside Inc. reported net income of $216,000 and declared and paid dividends of $40,500. The fair value of Fireside’s investment in Theater Supplies common stock is $283,500. Assume that Fireside Inc. has significant influence over Theater Supplies Corporation.

a. What amount would Fireside Inc. report on its balance sheet on December 31, 2020, for its investment in Theater Supplies Corporation?

b. What amount would Fireside Inc. report in its income statement for the year ended December 31, 2020, for its investment in Theater Supplies Corporation?

Note: Use a negative sign to indicate a loss.

Option #1: NFP financial reporting

The Four Corners Theater’s mission is to increase access to the arts for the community of Four Corners. The Theater group owns a debt-financed theater and puts on several plays throughout the year, as well as providing facilities for many other activities. Four Corner’s Theater is a well-established, not-for profit organization exempt under IRC Sec. 501(c)(3).

Identify whether the following activities would be subject to unrelated business income tax (UBIT) and explain why or why not.

1. Rental of the facility to the high school drama club.
2. Fees for summer acting classes for primary school students.
3. Sale of tickets to plays put on by the Four Corner’s Theater group.
4. Sale of season ticket membership list to a local book store.
5. Rental of two apartments in the facility.
6. Rental of meeting space to other local 501(c)(3) organizations for their monthly meetings.
7. Internet sales of gift shop items with the Four Corner’s Theater logo.
8. Lease of the facility’s parking lot to the local university on football game days.

CASE STUDY /big 4 Consultants has been appointed by a leading group in hotel industry to prepare feasibility report for opening a five-star hotel in Ras al Khaima. The group had been most successful one in the hotel industry and had always kept its eyes open for new opportunities.

In view of the very fast industrial growth in the city of Ras al Khaima, the city had attracted the attention of the group. It is historically known as Julfar, is one of the seven emirates that make up the United Arab Emirates (UAE). Its name could be taken to mean "headland of the small huts", which can be attributed to the indigenous buildings that existed along the coast. The Emirate is in the northern part of the UAE, bordering Oman’s exclave of Musandum. RAK, apart from being a developing city, has added advantage of pleasant weather and several places of tourist attraction in the neighborhood. Moreover, the closeness to Dubai and Abudhabi, a city of international stature, has made it very easily accessible to international tourists.

For this Consultancy, this was the first time in this area that an assignment concerning hotel industry had been received. They, however, soon realized that the assignment was not as simple as it appeared to be in the first place. The feasibility of such a hotel would depend essentially on two factors. Businessman visiting the city for work would constitute one segment of the market, while tourists would constitute the other. Further, the tourists could be from UAE or foreigners. The success of such a hotel would also depend upon the relative attraction of other tourist centres in the vicinity. Further, it was necessary to estimate fluctuations in demand for hotel accommodation so that attractive discounts could be offered during the off-season for business conferences, executive developmental programmes, etc.

The consultants realized that they would have to undertake a market research on a national scale to assess the tourist potential of the city. They would also have to survey the foreign tourists to estimate one of the most important segments of the market. They wondered whether such a survey will have to extend over a period of one full year to completely take into account the seasonal variations in tourists’ traffic. Moreover, they were undecided about the manner in which survey should be conducted. The company also feared that in absence of an accurate definition of the problem, they may land up surveying the complete tourist market in UAE rather than studying feasibility of a hotel in RAK.

Thus, the problem appeared well defined and that they were concerned as the preliminary report explaining methodology of the research and the questionnaires to be used to be submitted to the client along with the estimate of expenses within one month.

QUESTIONS

1. Apply your ideas in defining the problem of assessing feasibility of hotel in RAK so as

    to help designing the survey.

2. It is important to plan a survey for collecting information on expected demand for

    hotel space. Illustrate.

3. Being the coordinator of this research at Big 4 Consultants, explain various steps you

    would suggest to your research team in preparing the report to the Hotel management.