Consider the utility functions of three individuals: u(x) = x^1/2, v(x) = ln x, and h(x) = x – 0.01 x², where x represents wealth.

Consider also the following lotteries: X = (w₀ + x₁, w₀ + x_2, w₀ + x_{3; ¼, ½, ¼ )} = (4, 16, 25; ¼, ½, ¼), where w₀ = $2, and lottery Y in which w₁ = $10, so that Y = (12, 24, 33; ¼, ½, ¼). Note that Y = X + (10; 1)

1. Tell whether u(x), v(x) and h(x) are risk averse, risk neutral or risk lovers individuals.

2. Compare individuals u(x) and v(x) with respect to their degree of risk aversion. Tell who is more risk averse.

3. Calculate the risk premium of individuals u(x) and v(x) with respect to lottery X. Did you obtain that the risk premium of v((x) is larger than that of u(x)? Is that result expected? Why?

4. Compare the risk premium of individual u(x) with respect to lotteries X and Y. Did you obtain that the risk premium with respect to lottery X is larger than that with respect to Y? Is that result expected? Why?

5. Compare the risk premium of individual h(x) with respect to lotteries X and Y. Did you obtain that the risk premium with respect to lottery X is larger than that with respect to Y? Is that result expected? Why?

1. Sexual orientation and gender can best be described as examples of which of the following?

a. Group of answer choices

b. Individual characteristics that are not influenced by social factors

c. Identity categories that have personal and group meaning but can also be used for demographic research

d. Agents of socialization that allow developing individuals to understand their culture

e. Social categorizations imposed by researchers

2. An individual's social class is LEAST likely to be affected by…

a. Group of answer choices

b. Inheriting a large sum of money

c. Attaining a higher level of education

d. Starting volunteer work in a homeless shelter

e. Being elected to state legislature

3. Which of the following characteristics are associated with classical conditioning?

1. Reward and punishment
2. Reinforcement schedules
3. Conditioned and unconditioned responses

Group of answer choices:

a. 3 only

b. 1 and 2 only

c. 1, 2, and 3

d. only

4. According to Erikson’s psychosocial stages of development, an individual who does not successfully resolve his issue of identity likely experiences…a.

a. Inferiority

b. Mistrust

c. Role Confusion

d. Guilt

5. A new server notice that all the other new servers wear their aprons united, so she decides to leave her own apron untied. Which of the following phenomena does this situation best demonstrate?

a. Assimilation

b. Obedience

c. Compliance

d. Conformity

Hardee Transportation

Hardee’s line-haul tractors currently are equipped with the Qualcomm Satellite system. This allows Hardee to maintain real-time visibility of its tractors while they are either in motion or at rest. Trailer visibility is only available when it is hooked to a tractor. Hardee does not currently have electronic visibility of manifest/bill of landing (BOL) data in its trailers. In other words, Hardee’s satellite system will tell it that tractor #3235 is currently hooked to trailer #13145. What the system does not tell it is who the driver is, what the vehicle weight is, or which BOLs are on the trailer. To this point, Hardee’s system has served them well.

Hardee services many large manufacturers in the consumer goods industry whose main customers are large discount and specialty retailers. A current movement in this industry is the adoption of radio frequency identification (FRID) tags for full, real-time, visibility of inventory in the supply chain. Most of these efforts have taken place in manufacturing facilities, distribution centers, and retail stores. Some initiatives have placed RFID tags on pallets, cases, and individual consumer units. On of the disadvantages of these tags is the cost. Because of current low demand of these tags, each one can cost anywhere from $0.5 to $1. This cost could be prohibitive for large-volume customers.

One of Jim O’Brien’s large customers (a manufacturer of consumer products) has begun a major initiative with one of its retailers to place RFID tags on their pallets. A future pilot program will start placing these tags on each individual shipping case. Jim’s customer wants Hardee to become part of the pallet pilot because of the strategic role the carrier plays in this retail supply chain.

Jim knows little about RFID technology. What he does know is that the tags are expensive, require special receivers, and have a limited transmission distance (5 to 10 feet for passive tags). Hardee would need to develop the technology to track these pallets not only while sitting in Hardee’s yard or on its dock but also while they are in transit. Jim is really not sure what this will mean for Hardee and how it will change its technology requirements.

What would you tell Jim about RFID? How will this technology impact his carrier’s operations? How will he implement it while not incurring a huge expense? What will happen when the tags are placed on individual case?

Summary and Thoughts about this article (please, without copying it from another article, resource or whatever, your own words). (It doesn't have to be long, at least 4 paragraphs).

People in Economics

Man with a Mission

Hyun-Sung Khang profiles Princeton’s Atif Mian, who sees the fight against inequality as a moral imperative

Everyone knows someone who buys more than he or she can afford. This has been characterized mockingly as millennials spending beyond their means on avocado toast and expensive lattes, often borrowing to fund those wants. But in the modern era, dependence on credit isn’t a sign of profligacy, according to Atif Mian, a Princeton professor of economics, public policy, and finance. Rather, he argues, excessive borrowing is evidence of an economic system that has become distorted by widening income inequality.

“It’s almost as though the modern economy has become addicted to credit,” Mian says. “We need to understand how, and why, that happened.”

The 44-year-old Pakistani-American has done much to shed fresh light on our modern-day addiction to debt, and in the process, to proffer a new thesis for the greatest economic downturn in more than half a century. He and coauthor Amir Sufi, a University of Chicago finance professor, offer a novel take on the Great Recession in their 2014 book, House of Debt. The book helped land Mian on that year’s list of the world’s 25 most influential young economists, compiled by the IMF.

The authors parse vast amounts of data to show that a dramatic rise in household debt among borrowers least able to repay helped precipitate the greatest global financial crisis since the Great Depression. In their book, they argue that policymakers erred by focusing excessively on the banking system and in bailing out banks, not borrowers.

Sufi says their research has helped put household debt much more prominently on the radar of the IMF, the Federal Reserve, the Bank of England, and central banks of Australia, China, and Israel.

In the five years since the book’s publication, Mian and Sufi have broadened the scope of their research, focusing on household debt and economic inequality. Their more recent work links the worsening of household debt since 1980 to the rise of the
superrich. They connect increased income inequality to the concentration of vast amounts of wealth, which has flooded the economic system with easy credit that fuels consumption, rather than contributing to economic growth through real investment.

Passion for efficiency

In broadcast interviews and in the presence of his coauthor, Mian’s quieter, more reserved style is overshadowed by his fluent, fast-talking writing partner. But in person, and away from the camera, Mian’s mildness comes across as kind, thoughtful, and charming. He brings an easily overlooked passion to the dismal science and is attracted by the allure of the greater efficiencies it promises.

“The reason I get so excited about economics is—and this is my definition of economics: how can we better organize ourselves to do something where the sum is bigger than the parts?” says Mian. “I think economics is the unique field that exactly focuses on those kinds of questions.”

Mian’s wife of almost 20 years, Ayesha, jokes that the pursuit of efficiency prevails even in his personal life, manifesting itself in an obsession with “space utilization around the house,” during frequent evenings hosting guests.

“If there’s a three-seater [sofa], he wants three people to sit on it,” she says with a laugh. “But if there are two people sitting comfortably on it, he sees it as inefficient. Small things like that, he cannot get out of his head.”

And if a third person fails to fill the allotted slot? “You can see the pain on his face.”

Mian came to economics by accident. Born into a solidly upper-middle-class family in Pakistan as the only son of government physicians, Mian typically would have been expected to become either a doctor or an engineer, he says. As he had no interest in medicine, he chose engineering. Such was the value the family attached to education that Mian’s mother moved to Lahore, Pakistan’s second largest city, for the children’s education while his father remained posted a couple of hundred miles away.

At the age of 17, encouraged by his father, the young Mian applied to a handful of US schools and won a full scholarship to study electrical engineering at the Massachusetts Institute of Technology. He describes receiving MIT’s letter of acceptance as “one of the happiest (and luckiest) moments of my life.”

MIT was Mian’s first real exposure to life outside Pakistan and his first experience of independent living. Although he was a diligent student, engineering didn’t inspire him. Mian switched to mathematics and computer science and stumbled across economics while fulfilling his humanities requirement.

He saw in economics a field of study where he could address the big sociopolitical questions growing out of his childhood in 1980s Pakistan, a nation emerging from dictatorship, riven by violence, extremism, and internal sectarian tensions.

“You’re sort of wondering, like, is this really how the world is supposed to work in terms of the violence, in terms of the way the society seems to be splitting apart, and can one do better?” Mian says. “That was something that always resonated with me, that I wanted to do something about.”

After completing his undergraduate degree in mathematics and computer science with a perfect grade-point average and following a short sojourn at Princeton, Mian opted to return to MIT for his PhD. He earned his degree in 2001 with a dissertation on banking and governance. He then served as an assistant and associate finance professor at the University of Chicago business school until 2009 and as a professor of economics, finance, and international business at the University of California, Berkeley, until 2012, before coming to Princeton.

Research partnership

The partnership with Sufi, a Pakistani-American born in Detroit and reared in Topeka, Kansas, emerged from an introduction by a mutual friend, who suggested they had similar interests. According to Sufi, that interest was in “using applied microeconomic techniques to answer important questions at the intersection of finance and macroeconomics.”

It is this use of micro, or granular, data to answer macroeconomic questions that the authors view as their special contribution to economics. “This empirical approach has really taken off since our early work on the 2008 recession,” says Mian.

From that shared interest grew their book, which was short-listed for the Financial Times 2014 Business Book of the Year, although Thomas Piketty’s Capital in the Twenty-First Century ultimately won.

Former US Treasury Secretary Larry Summers suggested that the work “could be the most important book to come out of the 2008 Financial Crisis and subsequent Great Recession.” In a review, Summers expresses some sympathy for the authors’ assertion that there should have been greater consideration given to households during the Great Recession.

In discussions with Mian, there is almost a sense of a philosophical underpinning to his work, a belief that the well-being of a community or society depends on all individuals thriving. “When we talk about stuff like the Great Recession, you know, it really matters that we are able to absorb each other’s shocks, that we realize how we’re all ultimately connected to each other,” he says.

Summers agrees that all future work on financial crises will have to consider household balance sheets. At the same time, he defends the policymakers of the day.

“Mian and Sufi’s error is a common one among academic economists, many of whom are unwilling to try to understand policy choices that arise from considerations outside simple models,” Summers writes.

“This is exactly the kind of political timidity and failure to understand the gravity of the situation that has led to these kinds of problems,” retorts Mian.

Mian and Sufi write that policymakers could have done a better job of managing the financial crisis if they had facilitated bailouts for indebted households. The authors are sharply critical of the determination to rescue banks at the expense of households that were underwater.

“You could have said to the banks: ‘We, the central bank and the Treasury, we are giving you free money. You must pass that on to the borrower,’” Mian says. In addition, the government could have ordered a moratorium on house foreclosures. “There was no one to absorb the 4 million homes that were actually put on the market by banks.” Mian knows that because the data tell him so.

Data is always king, wife Ayesha says, but Mian is open to reasoned argument. When their two young daughters resisted attending a private school on the grounds that it was elitist, they spoke to their father and explained their views.

His response, according to Ayesha, was “There’s no way we are sending the girls there. As long as they give me a good reason, I’m OK with any decision they make.”

The two have known each other from a young age. They married in Lahore after Mian visited Pakistan to propose. Ayesha describes her husband as very serious and straightforward. Even as a student in his early 20s, “it was like talking to a 40–45-year-old.” She describes their early relationship as “practical” and “pragmatic.” “The romance came later,” she says.

Late last year, their 14- and 12-year-old daughters were joined by a brother. According to Ayesha, with the security of tenure and a major publication under his belt, Mian is relishing this third experience of fatherhood.

“He’s always been a phenomenal father, but now he’s lightened up more and is much more accessible,” she says.

Inequality and household debt

Mian’s and Sufi’s work on debt focuses on the reasons for and consequences of the steady and continued rise in debt relative to GDP. At the beginning of the 1980s, debt to GDP in the United States was about 30 percent. Since then, the figure has ballooned to more than 100 percent, a pattern duplicated in countries around the world.

The metanarrative the researchers are now exploring is the notion that the wealthiest in societies around the world make more money than they can possibly spend consuming. Rather than funding investment, the surplus is channeled through financial markets for lending to fuel consumption, Mian says.

“We’ve become a global economy dependent on credit creation to generate sufficient demand for growth,” he says.

With ever-increasing credit flowing through the system, to encourage more borrowing, interest rates are driven lower and lower, Mian suggests. But with interest rates at record low levels, there is a limit to how much further they can fall, creating the current liquidity trap, with low growth bedeviling countries around the globe. Mian suggests ominously that this credit “supercycle” is nearing an end.

From this thesis flow dismaying sociopolitical repercussions, including growing inequality, widespread discontent, and angry populism around the world, Mian says.

“You now have a relatively struggling global economy, against the background of more inequalities and inequities,” he says. “And so that raises political tensions. There’s something wrong. People sense that, and they want answers.”

Mian identifies unequal growth as the “fundamental disease” behind this credit supercycle, leading to a sense of disenfranchisement from society. The social costs are high and far-reaching. He cites examples ranging from child hunger in the United States, to high incarceration rates among black men, to low public investment in infrastructure.

“If you were to come from Mars and look at this situation, you would say, ‘What? Are these people crazy?’” Mian says.“‘They are forgetting millions of their population who have huge potential to make a difference; they are literally throwing them off the curbside.’ To the extent people like me matter, I see our role as trying to convey what is happening and why it’s happening.”

Inclusive prosperity

While pondering these questions, Mian became embroiled in a bitter, personal controversy in his native country. Last September, Pakistan’s newly elected Prime Minister Imran Khan named Mian to the Economic Advisory Council. Though widely praised internationally, Mian’s nomination was vehemently attacked by the religious right in Pakistan because of his membership in the minority Ahmadi religious community. After three days of street protests, the government reversed its decision. It was a bitter disappointment to Mian, who was looking forward to being of service to a country he loves.

Mian’s research, fueled by moral conviction, has led him to passionate advocacy for the fruits of growth to be shared more widely because, he says, economics shows us that our fortunes are linked.

Earlier this year, he added his name as one of 11 founding members of “Economics for Inclusive Prosperity,” a network of economists pledged to come up with policy solutions that will generate prosperity for all.

“While prosperity is the traditional concern of economists, the ‘inclusive’ modifier demands both that we consider the interest of all people, not simply the average person, and that we consider prosperity broadly, including nonpecuniary sources of well-being, from health to climate change to political rights,” the group’s website declares.

The reason for his support of the group? “Because we are all in it together,” Mian says. “Whatever ‘it’ is, we are all in it together.”

Prepare the necessary adjusting entries at December 31, 2018, for the Microchip Company for each of the following situations. Assume that no financial statements were prepared during the year and no adjusting entries were recorded.

1.On October 1, 2018, Microchip lent $90,000 to another company. A note was signed with principal and 6% interest to be paid on September 30, 2019.

2.On November 1, 2018, the company paid its landlord $9,300 representing rent for the months of November through January. Prepaid rent was debited.

3.On August 1, 2018, collected $15,300 in advance rent from another company that is renting a portion of Microchip’s factory. The $15,300 represents one year’s rent and the entire amount was credited to rent revenue.

4.Depreciation on office equipment is $5,600 for the year.

5.Vacation pay for the year that had been earned by employees but not paid to them or recorded is $9,100. The company records vacation pay as salaries expense.

6.Microchip began the year with $3,100 in its asset account, supplies. During the year, $7,600 in supplies were purchased and debited to supplies. At year-end, supplies costing $3,800 remain on hand.

Required: 2-a. If Microchip’s accountant employed reversing entries for prepaid expenses, prepare the original transactions creating the prepayments for only those entries that would be reversed.

2-b. If Microchip’s accountant employed reversing entries for prepaid expenses, prepare the adjusting entries at the end of 2018 for only those entries that would be reversed.

3. Prepare the appropriate reversing entries at the beginning of 2019

If no entry is required for a transaction/event, select "No journal entry required" in the first account field, and i want to know why it is no journal entry required or required. detail please

College students nationwide crave and rave about the sandwiches served up at their campus Jimmy John's Gourmet Sandwiches, but what they likely don't know is that the restaurant's founder was merely a fresh-faced high school graduate when he opened the chain's first location.

Using a loan of $25,000 from his father, Jimmy John Liautaud planned to open a Chicago-style hot dog stand in Charleston, Ill. But when he realized the equipment involved exceeded his budget, the 19-year-old turned his attention to dell-style sandwiches, opening the first Jimmy John's outlet in 1983 on the campus of Eastern Illinois University in Charleston.

Liautaud worked open to dose, usually by himself, in what was then a single-unit restaurant serving four sandwiches and 25-cent sodas. He has since grown the Champaign, Ill.-based brand into the second fastest-growing sandwich chain in the United States based on percentage growth in systemwide sales, according to Nation's Restaurant News' Top 200 census. In 2011 systemwide sales reached $1.01 billion, a 30-percent increase from the prior year.

The company currently has 26 corporate units and 1,415 franchised locations, and it continues to expand, opening approximately one new store every day.

Liautaud, who refers to himself as "a 30-year overnight success," didn't have a business plan when he started, and he claims he still doesn't. He attributes the brand's success to keeping it simple and staying informed.

"I didn't have a business philosophy or plan," he said. "What I did do was balance the checkbook every day and keep a bank balance. I was very keen on understanding what drove that balance up and down."

He grew that understanding by listening to Jamie Coulter, then a Pizza Hut franchisee who would go on to lead Lone Star Steakhouse. In 1987, after opening his second and third Jimmy John's units on the campus of Western Illinois University, Liautaud began attending monthly operations-review meetings that Coulter was holding for Pizza Hut franchisees.

"I told him to take notes and not ask any questions," said Coulter, chief executive and chairman of Coulter Enterprises Inc. "After the fourth meeting he did ask me some questions and showed me a financial statement. I was impressed with his numbers. He left with a lot of confidence, and he has just grown into a giant."

As he continued to expand the brand, Liautaud sold the first Jimmy John's franchise in 1994 and made a point to put his time and energy into developing a strong system of franchisees, which he maintains to this day with an intense hands-on approach.

"From my experience, Jimmy's attention to detail is without comparison," said Peter Fox, a Jimmy John's franchisee and part owner of the company, which he bought into when Liautaud sold a 33-percent stake to private equity firm Weston Presidio in 2007.

Fox, who was formerly a Wendy's franchisee and partner at Bear Steams, explained that corporate officials audit each franchised unit every 28 days. That audit includes the findings of a full day spent in the store rating and evaluating every detail. It is a process that Fox cited as drastically different and more involved than the one at Wendy's, and one that Liautaud himself continues to take part in because of mistakes made early in his career.

"I didn't lead by example and set people up to fail," he said. "I thought the definition of a good employee was someone that you didn't have to tell what to do and they just did it. Now I realize a good employee does exactly what you tell them to do."

Meticulous standards outlining how restaurants appear and are managed have helped Liautaud move closer to his goal of having every outlet, regardless of location, provide the same experience, environment and product.

"I really want them to be the same all the time, and I really want to be good at what I do," he said.

For this reason he sticks to a core menu and follows his guiding principles no matter what his competition is doing. While the product line has grown beyond the four original sandwiches--the cold-cut deli sandwich and sub remain the chain's bread and butter--Liautaud has resisted the temptation to add items such as hot sandwiches to better compete with brands like Potbelly Sandwich Shop and Subway.
"He's never deviated from trying to keep it simple," Fox said.

In line with its slogan, "Subs so fast you'll freak," Jimmy John's has also differentiated itself from competitors in the sandwich segment by investing time, training and money in its POS system to make sure that delivery is as quick and efficient as possible.

Liautaud claims to not know how he stands out from his competitors, who he says "are all great." He said he does not spend a lot of time thinking about what others in the business are doing. However, the difference is evident to those around him.

"I talk to Jimmy several times a week," Coulter said. "He just seems to have acquired more knowledge about the restaurant business than most of his competitors, and he executes his concept."

In addition to finance, Liautaud said he learned from Coulter that surrounding himself with good people was as important as anything else. That lesson has prompted Liautaud to eschew large development deals and big money and instead to focus on growing intelligently.

"I have no interest in being the biggest; I want to be the best," he said. "I'm going to focus on the people, focus on the team and focus on the franchisees being successful."

The company, which expanded outside of college campuses in the late 1990s, currently has more than 2,000 units in development. Despite that apparent success, however, Liautaud said he remains focused on keeping his business simple and developing strong business relationships.

"It's kind of old school, and it's not sexy," Liautaud said. "I wish I had a big, macro, super Harvard-Stanford-Yale plan to tell you about, but I just don't have one."

This case is about Jimmy John Liautaud, the founder and CEO of Jimmy John’s Gourmet Sandwiches and the evolution of his business. He began in 1983 with a single store. During the 1980s, the number of company owned stores grew, and in 1994, he began franchising. He shares how he built a strong brand so the in-store experience is consistent.

Answer the following questions: When he started his business, did Jimmy have a business plan? What was his focus to ensure success in the beginning? How has Jimmy built such a strong brand such that the customer experience is consistent regardless of location? What types of control are evident in the company’s franchise system?

In a perfectly competitive market, a profit-maximizing firm produces 2000 pounds of butter per week in the long run equilibrium. Answer each of the following questions with two diagrams, one for the butter market and another for the individual butter firm. If the market demand for butter increases …

a) How does it affect the butter market and the individual butter firm in the short run?

b) In the long run, how does the butter market adjust, and what will be the impacts on the individual butter firm?        

An individual buys 10 raffle tickets in hopes of winning one of 15 prizes to be given away by drawing tickets without replacement. The total number of raffle tickets sold is 168. Lt X be the number of prizes won by the individual.

A) Find the probability the individual wins at least one prize

B) Calculate the expected value E(X) accurate to 4 decimal places

C) Calculate the standard deviation SD(X) accurate to 4 decimal places

How would each of the following developments affect the exchange rate of the US dollar (state whether the US dollar will get stronger or weaker)? Support your answer discussing the effects on the demand and supply of a foreign currency or dollars and using appropriate diagrams.

a. Increase in the expected inflation rate in the economies of US trading partners

b. Increase in the expected future exchange rate (US $ is expected to grow stronger)

c. Americans are traveling less abroad because of the Covid 19 situation

d. The European Union interest rate rises relative to the US interest rate

e. Less foreign tourists are coming to the Florida beach for fear of covid 19.