Question 2

1. Differentiate with appropriate examples between contractionary and expansionary monetary policies.                                                                                    

2. (i)Suppose that there are no crowding-out effects and the MPC is 0.9. By how

much must the government increase expenditures to shift the aggregate demand curve right by RM10 billion?

2. Suppose that the government increases expenditures by RM150 billion while increasing taxes by RM150 billion. Suppose that the MPC is 0.80 and that there are no crowding out effects. What is the combined effect of these changes? Why is the combined change not equal to zero?            

A) $6.00

B) $0.12

C) $10.90

D) $9.63

E) $8.45

Suppose we know that a policy did not produce any change in a household’s real per capita consumption expenditure. List at least five ways the policy might nonetheless have improved the household’s well-being. That is, suggest at least five stories regarding how the household’s circumstances might have changed, and how the household responded to those changes, that are consistent with the household’s well-being rising even while its per capita consumption expenditure remains constant.

A company's income statement showed the following: net income, $134,000; depreciation expense, $40,000; and gain on sale of plant assets, $14,000. An examination of the company's current assets and current liabilities showed the following changes as a result of operating activities: accounts receivable decreased $11,400; merchandise inventory increased $28,000; prepaid expenses increased $8,200; accounts payable increased $5,400. Calculate the net cash provided or used by operating activities.

Multiple Choice

$140,600.

$183,000.

$157,000.

$155,000.

$161,800.

A firm has the following production function:

Q = K^0.8L^0.1

1. Show if this is a constant, decreasing, or increasing returns to scale production function? Explain.
2. Find the marginal rate of technical substitution (MRTS) and discuss how MRTS changes as the firm uses more L, holding output constant.
3. Suppose that the wage rate is $10 per hour and the rental rate of capital is $10 per hour. If the firm wants to produce 500 units of output, what is the cost-minimizing bundle of capital and labor?

As you look back on the course, consider how marketing affects your daily life and how your understanding of marketing has changed. To illustrate some of the marketing components that you have learned, identify a specific product that could benefit from a new marketing strategy. Describe this product and explain how you could use the information from this course to recommend changes. Make sure to include what research strategies you would recommend the company use to inform the new strategies. 

As you look back on the course, consider how marketing affects your daily life and how your understanding of marketing has changed. To illustrate some of the marketing components that you have learned, identify a specific product that could benefit from a new marketing strategy. Describe this product and explain how you could use the information from this course to recommend changes. Make sure to include what research strategies you would recommend the company use to inform the new strategies. 

Assume that a business was started on January 1, 2003 when it

acquired $60,000 cash from its owner(s). During 2003 the

company generated $29,000 of cash services revenue,

incurred $19,000 of cash expenses, and distributed $4,000

cash to the owner(s).

•

Prepare a statement of changes in equity for this partnership:

–

Carl Link and Bill Morgan established the business as a

partnership. Link contributed 60% of the capital, Morgan

40%. The partners agreed to share profits and withdrawals

in proportion to their capital investments

Think of a toy model of a dimeric receptor binding with a divalent ligand. The K_Ds for binding between a two-armed compound LL1 (this is the ligand) and individual receptors R1 and R2 are:

R1 … 7.9 nM             R2 … 50.1 nM

Now think of a protein R1-R2, which is a protein comprised of both R1 and R2. At a temperature 300K, if there is no loss of energy/entropy to induce conformational changes of the protein and ligand during the binding, what is the expected K_D between LL1 and R1-R2 and corresponding deltaG?