1-Six months after starting atorvastatin therapy, a person’s total and LDL cholesterol levels stayed higher than normal, and he continued to have anginal episodes in spite of good adherence to his angina drugs. His doctor will add ezetimibe. Which of the drugs is the most precise explanation of ezetimibe’s mechanism of an action?

Reduced lipid synthesis in adipose tissue

Amplified lipid hydrolysis by lipoprotein lipase

Decreased gastrointestinal absorption of cholesterol

Reduced secretion of VLDL by the liver

Amplified endocytosis of HDL by the liver

2-A 53-year-old man has a history of frequent cases of pain due to calcium-based renal stones. A careful examination shows that he has a problem in proximal tubular calcium reabsorption that leads to high levels of calcium salts in the urine. The most beneficial diuretic drug in the management of calcium stones is

Chlorthalidone

Ethacrynic acid

Diazoxide

Spironolactone

Mannitol

3-A patient will undergo a major orthopedic surgery two hours from now. He will not be able to walk for 2 months so he will need drug or drugs to prevent deep vein thrombosis. Which of the following should be started for this indication?

Heparin on the first day and warfarin on the seventh day

None of the listed

Warfarin and heparin on the seventh day

Warfarin on the first day and heparin on the seventh day

A Bloomberg Businessweek subscriber study asked, “in the past 12 months, when traveling for business, what type of airline ticket did you purchase most often?” A second question asked if the type of airline ticket purchased most often was for domestic or international travel. Sample data obtained are shown in the following table.

A) The study wants to test whether the type of ticket is independent of the type of flight. Clearly state the null and alternative hypotheses. (2 points)

B) Compute the expected frequencies by completing the table below. (3 points)

C) Compute the test statistic.

Please copy your R code and the result and paste them here.

D) At 5% significance level, compute the critical value for the test statistic and the p value for the test. Draw your conclusion. (5 points)

Please copy your R code and the result and paste them here.

E) Use the function chisq.test() in R to run the test directly to confirm your results above are correct. (4 points)

Please copy your R code and the result and paste them here.

1. If a demand shock causes an economy to operate at a point above potential GDP, then

Select one:

a. the aggregate supply curve will shift to return the economy to the original point of equilibrium

b. the economy will correct itself through rising wages and prices

c. this short-run equilibrium point will become the new long-run equilibrium GDP

d. the economy will correct itself through falling wage rates and prices

e. the shock is said to be a negative demand shock

2. One reason why economists often appear to disagree when asked about the impact of some macroeconomic policies is that

Select one:

a. they do not understand the economy very well

b. economics is a very difficult science, and so there are many incorrect economic projections being made

c. economists rarely disagree; people just think they are disagreeing because they do not understand the language of economics

d. economists often appear to be disagreeing when one is talking about long-run impact while the other is referring to short-run impacts

e. economists are by nature competitive individuals and they often disagree

3. An increase in government spending leads to a(n)

Select one:

a. downward shift of the aggregate expenditure line and a leftward shift of the money demand curve

b. upward shift of the aggregate expenditure line and a rightward shift of the money demand curve

c. downward shift of the aggregate expenditure line and a rightward shift of the money demand curve

d. upward shift of the aggregate expenditure line and a leftward shift of the money demand curve

e. upward shift of the aggregate expenditure line but no shift of the money demand curve

4. Which of the following would increase labor productivity?

Select one:

a. an increase in the physical capital stock per worker

b. an increase in human capital per worker

c. an increase in natural resources per worker

d. a technological improvement

e. All of the above are correct

5. If a firm bakes cookies and sells them for $900 while spending $150 on sugar, $250 on chocolate, $100 on other supplies, $100 on wages and $200 on rent, what is its value added?

Select one:

a. $100

b. $200

c. $300

d. $400

e. $500

6.The official measure of unemployment may underestimate actual unemployment because

Select one:

a. people may lie when reporting they are looking for jobs

b. the treatment of involuntary part-time workers and discouraged workers is misleading

c. the population sample employed by the Labor Department is too small to be representative

d.

e.

7. If domestic households purchased an imported car at $200,000, which of the following could have occurred, all else being the same?

Select one:

a. GDP decreases by $200,000, with a decrease of $200,000 in net exports

b. GDP increases by $200,000, with an increase of $200,000 in net exports

c. GDP remains unchanged

d. The consumption component of GDP increases by $200,000

e. Both c and d

8. Suppose the Federal Reserve wants to decrease the money supply by $100,000. If the required reserve ratio is 0.1, which of the following actions will achieve the Fed’s goal?

Select one:

a. The Fed must purchase $100,000 in bonds

b. The Fed must sell $100,000 in bonds

c. The Fed must purchase $10,000 in bonds

d. The Fed must sell $10,000 in bonds

e. The Fed must sell $90,000 in bonds

26. Which of the following types of inventory accounts would be used by a wholesaler or retailer?

A) Merchandise inventory

B) Finished good inventory

C) Work in process inventory

D) Raw material inventory

27. Items should be reported as part of the company’s “inventory” at the year end, if they are?

A) Sold during period

B) Determined to be part of cost of goods sold

C) Purchased from a creditor, available for sale, and paid for the following year

D) Held in anticipation of an increase in market value

28. Which of the following accounts most likely would appear on the income statement of a merchandise company, but not on the income statement of service company?

A) Income tax expense

B) Cost of goods sold

C) Selling Expense

D) Administrative Expense

29. Tavelli Co. sold merchandise to Trapani Co. on account $17,000 terms 2/15 net 45. The cost of merchandise sold is $15,400. Tavelli Co. issued a credit memo for $1,750 for merchandise returned that originally cost $1,400. The Trapani Co. paid the invoice within the discount period. What is the amount of net sales from the above transaction?

A) $17,000

B) $14,945

C) $15,250   D) None of the above

Morrisey & Brown, Ltd., of Sydney is a merchandising company that is the sole distributor of a product that is increasing in popularity among Australian consumers. The company’s income statements for the three most recent months follow:

Required:  

1. Identify each of the company’s expenses (including cost of goods sold) as either variable, fixed, or mixed.

2. Using the high-low method, separate each mixed expense into variable and fixed elements. State the cost formula for each mixed expense.

3. Redo the company’s income statement at the 5,000-unit level of activity using the contribution format.

Mikco, a foreign corporation, owns 100% of Flagco, a domestic corporation. Mikco manufactures a wide variety of fl ags for worldwide distribution. Flagco imports Mikco’s finished goods for resale in the United States. Flagco’s average fi nancial results for the last three years are as follows:

Flagco’s CFO has decided to use the comparable profits method to assess Flagco’s exposure to an IRS transfer pricing adjustment by testing the reasonableness of Flagco’s reported operating profit of $1 million. An analysis of fi ve comparable uncontrolled U.S. distributors indicates that the ratio of operating profits to sales is the most appropriate profitability measure. After adjustments have been made to account for material differences between Flagco and the uncontrolled distributors, the average ratio of operating profit to sales for each uncontrolled distributor is as follows: 6%, 8%, 10%, 10%, and 14%.

Using this information regarding comparable uncontrolled U.S. distributors, apply the comparable profits method to assess the reasonableness of Flagco’s reported profits. In addition, if an adjustment to Flagco’s reported profits is required, compute the amount of that adjustment.

Camino Company manufactures designer to-go coffee cups. Each line of coffee cups is endorsed by a high-profile celebrity and designed with special elements selected by the celebrity. During the most recent year, Camino Company had the following operating results while operating at 85 percent (85,000 units) of its capacity:

Camino’s cost of goods sold and operating expenses are 80 percent variable and 20 percent fixed. Camino has received an offer from a professional wrestling association to design a coffee cup endorsed by its biggest star and produce 14,000 cups for $10 each (total $140,000). These cups would be sold at wrestling matches throughout the United States. Acceptance of the order would require a $42,000 endorsement fee to the wrestling star, but no other increases in fixed operating expenses.

Required:
1. Complete the incremental analysis of the special order in the table provided below.
2. Should Camino accept this special order?
3. If Camino were operating at full capacity, what price would Camino require for the special order?

Morrisey & Brown, Ltd., of Sydney is a merchandising company that is the sole distributor of a product that is increasing in popularity among Australian consumers. The company’s income statements for the three most recent months follow:

Required:  

1. Identify each of the company’s expenses (including cost of goods sold) as either variable, fixed, or mixed.

2. Using the high-low method, separate each mixed expense into variable and fixed elements. State the cost formula for each mixed expense.

3. Redo the company’s income statement at the 5,000-unit level of activity using the contribution format.

Morrisey & Brown, Ltd., of Sydney is a merchandising company that is the sole distributor of a product that is increasing in popularity among Australian consumers. The company’s income statements for the three most recent months follow: Morrisey & Brown, Ltd. Income Statements For the Three Months Ended September 30 July August September Sales in units 4,000 4,500 5,000 Sales $ 400,000 $ 450,000 $ 500,000 Cost of goods sold 240,000 270,000 300,000 Gross margin 160,000 180,000 200,000 Selling and administrative expenses: Advertising expense 21,000 21,000 21,000 Shipping expense 34,000 36,000 38,000 Salaries and commissions 78,000 84,000 90,000 Insurance expense 6,000 6,000 6,000 Depreciation expense 15,000 15,000 15,000 Total selling and administrative expenses 154,000 162,000 170,000 Net operating income $ 6,000 $ 18,000 $ 30,000 Required: 1. Identify each of the company’s expenses (including cost of goods sold) as either variable, fixed, or mixed. 2. Using the high-low method, separate each mixed expense into variable and fixed elements. State the cost formula for each mixed expense. 3. Redo the company’s income statement at the 5,000-unit level of activity using the contribution format. References