1b The Earth is structured in layers: crust, mantle, and core. A recent study was conducted to estimate the mean depth of the upper mantle in a specific farming region in California. Twenty-six, n = 26 sample sites were selected at random from a normally distributed population of approximately N = 1598 sites, and the depth of the upper mantle was measured using changes in seismic velocity and density. The sample mean was 127.5 km and the sample standard deviation was 21.3 km. Suppose the depth of the upper mantle is normally distributed. Find a 90% confidence interval for the true mean depth of the upper mantle in this farming region.

1. Determine the prerequisites have been met (3 pts):

• Random sample:
• n ≤ 0.05 of N:
• the population is normally distributed or n ≤ 30:

2. Construct the confidence interval (4 pts):

3. Interpret the confidence interval, in a statement (1 pt):

1c According to the U.S. Fire Administration, approximately N = 25,000 fires are caused by fire-works each year in the United States. Despite numerous public warnings against the use of fireworks, the home property damage due to these fires is enormous. In a random sample of n = 25 fires due to fireworks, the resulting mean property damage (in dollars) was 860.75 with a standard deviation of 350.50. Assume the underlying distribution of property damage due to these fires is normal. Find a 99% confidence interval for the true mean property damage due to a fire caused by fireworks.

1. Determine the prerequisites have been met (3 pts):

• Random sample:
• n ≤ 0.05 of N:
• the population is normally distributed or n ≤ 30:

2. Construct the confidence interval (4 pts):

3. Interpret the confidence interval, in a statement (1 pt):

One of the central predictions of neo-classical macroeconomic growth theory is that an increase in the growth rate of the population causes at first a decline the growth rate of real output per capita, but that subsequently the growth rate returns to its natural level, itself determined by the rate of technological innovation. The intuition is that, if the growth rate of the workforce increases, then more has to be saved to provide the new workers with physical capital. However, accumulating capital takes time, so that output per capita falls in the short run.

Under the assumption that population growth is exogenous, a number of regressions of the growth rate of output per capita on current and lagged population growth were performed, as reported below. (A constant was included in the regressions but is not reported. HAC standard errors are in brackets. BIC is listed at the bottom of the table).

Regression of Growth Rate of Real Per-Capita GDP on Lags of Population Growth, United States, 1825-2000

(a) Which of these models is favored by the information criterion?
(b) How consistent are these estimates with the theory? Is this a fair test of the theory? Why or why not?
(c) Can you think of any improved data to test the theory?

The exchange rate of a currency is the price paid in one country's currency for the currency of another country. If a company in the United States sources parts from a company in Europe, dollars will need to be converted to euros to pay for the parts. This need to convert currency introduces uncertainty as to the actual cost of the parts, since the exchange rate at the time the price is quoted may be different from the rate when payment is made. If the value of the euro appreciates, it will take more dollars to make payment in euros. If the value of the euro depreciates, it will take fewer dollars.

This exercise is designed to give you practice with currency exchange and help you better understand fluctuations in the exchange rates in CountryManager.

1. COUNTRYMANAGER

   
   In the table below, given the value of 1 USD in each of the countries, fill in the exchange rates for all the other combinations.

2. An Argentine retailer has ordered BRL 100,000 worth of product from a manufacturer in Brazil. Using the rates in the table in question 1, how much will the order cost in Argentine pesos?

3. A US firm has a subsidiary in Japan which earned YEN 1.5 billion last year. How much is that in US dollars at the rate of exchange in the table?

4. If the subsidiary in Japan increases earnings to YEN 1.7 billion, and the exchange rate rises to YEN/USD 92.1749, what are the earnings in USD? What if the rate goes down to 71.3687?

5. In CountryManager, you do not have any way of mitigating the risk of exchange rate fluctuations. What can an international business do in the real world to reduce the risk?

Inventory Turnover and days’ sales in inventory

Kracker Corp., Foodstuff, Inc., and Winston Stores, Inc. are three grocery chains in the United States. Inventory management is an important aspect of the grocery retail business. Recent balance sheets for these three companies indicated the following merchandise inventory (in millions) information:

a. & b. Determine the inventory turnover and the number of days’ sales in inventory (use 365 days and round to the nearest day) for the three companies. Round all interim calculations to one decimal place. For days' sales in inventory, round final answers to the nearest day, and for inventory turnover, round to one decimal place.

c. The inventory turnover ratios and days’ sales in inventory are   for Kracker and Foodstuff. Winston Stores has a   inventory turnover and a   days’ sales in inventory than Kracker and Foodstuff. These results suggest that Kracker and Foodstuff are   efficient than Winston Stores in managing inventory.

d. If Kracker had Winston Stores’ days’ sales in inventory, how much additional cash flow would have been generated from the smaller inventory relative to its actual average inventory position? Round interim calculations to one decimal place and your final answer to the nearest million.
$fill in the blank 11 million

To do a Case Analysis for the following (Background, Problem, Alternative course of action, Evaluating the alternatives, Recommendation, conclusion)

Shantou Real Lingerie Manufacturing Company (Shan- tou) is incorporated in China. Shantou manufactures and exports garments to the United States. Native Group International, Inc. (Native), is a corporation organized under the laws of New York engaged in the business of selling intimate wear to the wholesale and retail market. Between May and November 2013, Native placed dozens of orders with Shantou for lingerie. Following each order, Shantou issued a sales confirmation to Native, which referenced the cost, quantity, and type of goods ordered. These confirmations were signed by a representative of Native. Thereafter, Shantou manufactured the goods in accordance with the requested specifications. Between October 2013 and February 2014, Shantou delivered the goods specified in the confirmations to Native through five separate shipments. Shantou also included in each of the five shipments an invoice, indicating the total balance due, as well as the price, quantity, and type of products shipped. Native accepted each shipment, retained the goods delivered, and never claimed a set-off or credit. The total amount invoiced for the five shipments was $437,562.20. Native made payments totaling $165,522.80, leaving an unpaid balance of $272,040.40. The commu- nications between Shantou and Native were silent with respect to the governing law. Native claimed that there was no written contract between the parties when Shan- tou subsequently filed a lawsuit against Native for the unpaid balance. What law should govern the terms of the parties’ arrangement? Is a written agreement necessary in this case? What are the terms of the parties’ agreement if any? Shantou Real Lingerie Manufacturing Co. v. Native Group International, Ltd., 2016 WL 4532911

MACROECONOMICS PAPER ASSIGNMENT

The Physicians for a National Health Program

and Single Pay National Health Care Insurance

Due April 12

One of our country’s most significant fiscal policy issues is rising health care costs. The Physicians for a National Health Program (PNHP) is a non-profit organization of 20,000 physicians, medical students, and health professionals who support single-payer national health insurance (or Medicare For All) as a means of reforming health care in the United States. It is currently the health care position of Presidential candidates Bernie Sanders and Elizabeth Warren.

For this paper assignment, each student will review the PNHP website (as well as other sources contained in Blackboard) and write a TYPED paper of no more than 300 words with respect to the following:

- What is single payer health care?

- What does PNHP consider the most serious health care spending problem? Why?

- What are PNHP’s biggest problems with Obamacare, which was another way of dealing with health care reform?

- How will single pay health care be paid for?

- Do you agree with PNHP’s positions? If so, why? If not, why not?

Prior to writing your paper, watch the Crash Course Economics video “The Economics of Heath Care” and read the “Health Care Primer” found in the Blackboard folder. As part of your paper, cite at least one outside article or book and reference it at the end (name, author, date, web link). Grading will be based on your knowledge of PNHP’s position, addressing each of the above questions (using the primer and video as a reference), and the thoughtfulness in arguing your position. The paper can be submitted via email attachment or through Blackboard – no hard copies.

1. To create a supply curve, you would plot the ___ of a product that sellers are willing to part with at a specific office, regardless of the demand.

2. In a(n) ____ market, the number of sellers is low, controlling much of the market, and are able to have some control over their price structure. In a(n) ___ market, there are many sellers with products that differ slightly but have similar purposes.

3. Classify which of these factors are included by the United States government when calculating the GDP (gross domestic product).

Part of GDP and not part of GDP
-Products that are part of a final product
- Good and services produced in the U.S. by U.S. companies
-goods and services produced inside the U.S. by non-U.S. companies
-goods provided to be sold to final users

4.Which of these are characteristics of full employment? Select all the correct answers.
-everyone has a full time job
-100% of those seeking work are employed
-95% of those seeking work are employed

5. Statistics that are used to understand the economy for the past few months are ____, while those used to understand where the economy is headed in the upcoming few months to a year are _______.
-the price stability index
-leading economic indicators
-consumer confidence indicators
-lagging economic indicators

6. If the difference between what the government takes in through taxes is higher than what it spends on goods and services, it has a _____.
-monetary policy
-fiscal policy
-budget surplus
-budget deficit

7. The ___ results from a government's consistent taking in less money from taxes than it spends on goods and services.
-GNP
-national debt
-CPI
-fiscal policy

8. If the Federal Reserve uses a contractionary policy, it is concerned about ______. In this instance, it would make it _______ to borrow money and would increase interest rates.

Question 6 1 pts

Money eliminates the need for the double coincidence of wants through its use as a

Group of answer choices

unit of account

store of value

medium of exchange

standard of value

Flag this Question

Question 7 1 pts

In the United States, the basic money supply (M1) is primarily comprised of

Group of answer choices

coins, "paper" currency, checkable deposits, & short-term government debt

coins, "paper" currency & checkable deposits

a commodity

worthless pieces of "paper", thanks to the Federal Reserve System

"near-monies"

Flag this Question

Question 8 1 pts

Keynes' important contribution to the concept of money demand was (hint: see question #10)

Group of answer choices

he really didn't make any important contribution

the development of the various definitions of money (M1, M2, etc.)

an emphasis on the possibility that the public might wish to hold money as a "store of wealth" or an asset

the "transactions demand" for money

that there is an inverse relationship between the value of money and the price level

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Question 9 1 pts

The demand for money function put together in class is formally known as

Group of answer choices

the classical demand for real cash balances

what demand for money function?

the liquidity preference demand for money function

the alcohol preference for money function

the transactions demand for money function

Flag this Question

Question 10 1 pts

The transactions demand (D_t) for money is most closely related to money functioning as a

Group of answer choices

store of value (or wealth)

unit of account

medium of exchange

measure of value

9) Based on the premise that, other things equal, countries would prefer a fixed exchange rate, which of the following statements is NOT true?

A) Fixed rates provide stability in international prices for the conduct of trade.

B) Fixed exchange rate regimes necessitate that central banks maintain large quantities of international reserves for use in the occasional defense of the fixed rate.

C) Fixed rates are inherently inflationary in that they require the country to follow loose monetary and fiscal policies.

D) Stable prices aid in the growth of international trade and lessen exchange rate risks for businesses.

10) According to the terminology associated with changes in currency values, which of the following choices is the case when a currency's value relative to other currencies is changed by a government?

A) depreciation and revaluation

B) devaluation and appreciation

C) devaluation and revaluation

D) depreciation and appreciation

11) The "Impossible Trinity" is defined as the inability to achieve simultaneously the goals of exchange rate stability, full financial integration, and monetary independence. If a country chooses to have a pure float exchange rate regime, which two of the three goals is a country most able to achieve?

A) monetary independence and exchange rate stability

B) exchange rate stability and full financial integration

C) full financial integration and monetary independence

D) A country cannot attain any of the exchange rate goals with a pure float exchange rate regime.

12) What is the single most important mandate of the European Central Bank?

A) Promote international trade for countries within the European Union.

B) Price, in euros, all products for sale in the European Union.

C) Promote price stability within the European Union.

D) Establish an EMU trade surplus with the United States.

For this task you will write a persuasive letter, create a PowerPoint presentation, or create a video presentation to respond to a scenario.

Scenario

You just got hired as an economic advisor to the President of the United States. You have a difficult task ahead of you. Currently the country is stuck in a crippling recession. The unemployment rate has risen to 8%, and your predecessor made the unwise decision of printing more money to solve the problem. Now, along with the high level of unemployment, the inflation rate is rising rapidly. The President has given you full access to all of the resources the government has to offer. You are tasked with stabilizing the economy within one year. If you succeed, the President will make you his next Secretary of Commerce. If you fail, you will be sent to the basement of the White House to alphabetize old documents for the rest of your career.

Performance Task Options

1. Persuasive letter: Write a persuasive letter to the president explaining your plan for fixing the economy.
2. Presentation: Create a PowerPoint or Google Slides presentation you would share with the president, outlining your plan to fix the economy.
3. Video presentation: Create a video presentation you would share with the president, outlining your plan to fix the economy.

Requirements

In your response, you must include the following:

• The involvement of at least one regulatory agency with specifics on how it will help.
• The involvement of the Federal Reserve in creating a successful monetary policy.
• A strategy to redistribute wealth to the people who are struggling.
• A proposed budget for the upcoming year that focuses on the economic needs of the American people.
• A strategy to stabilize the economy and reverse the rise in unemployment and inflation.
• A proposed tax plan that will spark the economy and relieve the financial burden of people with a lower income.