One activity historically undertaken by local government tourism organizations is that of marketing. In established and popular destinations, should spending on marketing and promotion now be left in the hands of the private sector, which are the businesses that gain from tourism spend. Discuss

Simple discussion, about 200-400 words

• Discuss how changes in the Federal Reserve’s monetary policy affect at least 1 of the 4 components of GDP (consumption, investment, government spending, net exports).
• Have the Federal Reserve’s countercyclical monetary policies been effective in moderating business cycle swings? Justify your response.

(You will receive more credit for being “quantitative” with your answers, not just “qualitative”):

The role of government in the U.S. economy has grown over time. Provide some evidence of this fact. Also, the composition of government spending has changed over time. Provide some evidence of this fact.

AD AS problem

6) Government increases its spending and reduces personal income tax rates (assume no

crowding out). The economy is far from potential (recession). (Use the neoclassical

synthesis)

7) The economy experiences a significant increase in production technology (show a

classical model (LRAS))

1. Describe the ‘crowding out’ perspective on fiscal policy in your own words. In your opinion, what are the strengths and weaknesses of this argument?
2. Why might government spending create a larger multiplier effect when unemployment is high and have a smaller multiplier effect when the economy is at full employment?

Show what happens to interest rate, output, prices and wages as

i. Government spending decreases within a general equilibrium framework

ii. Money Supply decreases within a general equilibrium framework

iii. Autonomous consumption (or autonomous investment) decreases within a general equilibrium framework

1. Three market structures: perfect competition, monopoly, and monopolistic competition.
– In each of these, would you expect to see firms spending money to advertise their products?
Why or why not?

2. Is advertising good or bad from society’s viewpoint? Try to think of at least one “pro” and “con.

Define capital stock. Use the aggregate demand and supply model to show the effects of a decrease in interest rates in the short run and in the long run. Explain why each curve shifts. Also explain why an increase in consumer spending would not have the same effect in the long run.

Sharp Company manufactures a product for which the following standards have been set:

During March, the company purchased direct materials at a cost of $52,740, all of which were used in the production of 2,750 units of product. In addition, 4,500 direct labor-hours were worked on the product during the month. The cost of this labor time was $40,500. The following variances have been computed for the month:

Required:

1. For direct materials:

a. Compute the actual cost per foot of materials for March.

b. Compute the price variance and the spending variance.

2. For direct labor:

a. Compute the standard direct labor rate per hour.

b. Compute the standard hours allowed for the month’s production.

c. Compute the standard hours allowed per unit of product.

For direct materials, compute the actual cost per foot of materials for March. (Round your answer to 2 decimal places.)

For direct materials, compute the price variance and the spending variance. (Do not round intermediate calculations. 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.)

2a. For direct labor, compute the standard direct labor rate per hour. (Round your answer to the nearest whole dollar.)

2b. For direct labor, compute the standard hours allowed for the month’s production. (Do not round your intermediate value.)

2c. For direct labor, compute the standard hours allowed per unit of product. (Round your answer to 1 decimal place.)

ACME manufacturing is a low-cost producer of a single, commodity product: RGL-01. Standard overhead cost information for one unit of this product is presented below:

Required

3. What is the total overhead variance for the year when the overhead application rate per machine hour is determined under each of the following options: (a) budgeted output, (b) normal capacity, and (c) practical capacity? Indicate whether each variance is favorable (F) or unfavorable (U). (Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.)

5. What is the Overhead Efficiency Variance (= Variable Overhead Efficiency Variance) for the year when the overhead application rate per machine hour is determined under each of the following options: (a) budgeted output, (b) normal capacity, and (c) practical capacity? Indicate whether each variance is favorable (F) or unfavorable (U).

7. What is the total Overhead Spending Variance for the year under each of the following assumptions regarding the denominator activity level used to set the overhead application rate for the year:

a) budgeted output, (b) normal capacity, and (c) practical capacity? State whether each variance is favorable (F) or unfavorable (U).

8. Break down the Total Overhead Spending Variance (as determined in requirement 7) into: (a) a Fixed Overhead Spending Variance, and

(b) a Variable Overhead Spending Variance. State whether each variance is favorable (F) or unfavorable (U).