The Economist collects data each year on the price of a Big Mac in various countries around the world. A sample of McDonald's restaurants in Europe in July 2016 resulted in the following Big Mac prices (after conversion to U.S. dollars).

The mean price of a Big Mac in the U.S. in July 2016 was $5.04. For purposes of this exercise, you can assume it is reasonable to regard the sample as representative of European McDonald's restaurants. Does the sample provide convincing evidence that the mean July 2016 price of a Big Mac in Europe is less than the reported U.S. price? Test the relevant hypotheses using

α = 0.05.

(Hint: See Example 12.12.)

Find the test statistic and P-value. (Use a table or technology. Round your test statistic to one decimal place and your P-value to three decimal places.)

t=  

P-value = 0.000

State the conclusion in the problem context.

We reject H₀. We have convincing evidence that the mean July 2016 price of a Big Mac in Europe is less than the reported U.S. price.

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North Bank has been borrowing in the U.S. markets and lending abroad, thereby incurring foreign exchange risk. In a recent transaction, it issued a one-year $2.00 million CD at 4 percent and is planning to fund a loan in British pounds at 6 percent for a 2 percent expected spread. The spot rate of U.S. dollars for British pounds is $1.450/£1.

a. However, new information now indicates that the British pound will appreciate such that the spot rate of U.S. dollars for British pounds is $1.43/£1 by year-end. Calculate the loan rate to maintain the 2 percent spread.
b. The bank has an opportunity to hedge using one-year forward contracts at 1.46 U.S. dollars for British pounds. Calculate the net interest margin if the bank hedges its forward foreign exchange exposure.
c. Calculate the loan rate to maintain the 2 percent spread if the bank intends to hedge its exposure using the forward rates.

GNP measures: Select one: a. production by U.S. citizens wherever they work in the world. b. the production of both intermediate and final goods and services. c. the same things as GDP, but also includes financial assets. d. goods and services produced by foreign businesses inside U.S. borders. Which option best defines Gross Domestic Product (GDP)? Select one: a. The market value of all the final goods and services produced within a country b. The total amount of sales from U.S. own companies c. The value of all the private spending on products made by corporations d. The total amount of profits earned by U.S. firms from production over the year. determinant demand TF 3: An increase in demand will cause the demand curve for an inferior good to increase (shift right). Select one: True False Which statement is true. In the aggregate sense: Select one: a. Total spending will be larger than total income b. Total income will be larger than total spending c. Total spending + total income will equal the value of the output d. Total spending will equal total income

1. Which of the following would increase prices for U.S. consumers?

​ 2. The larger the MPC:

3. Suppose that the U.S. can make 15 cars or 20 bottles of wine with one year's worth of labor. France can make 10 cars or 18 bottles of wine with one year's worth of labor. From these numbers, we can conclude

4. Which of the following is an example of a pure market economy?

In an article in Marketing Science, Silk and Berndt investigate the output of advertising agencies. They describe ad agency output by finding the shares of dollar billing volume coming from various media categories such as network television, spot television, newspapers, radio, and so forth. (a) Suppose that a random sample of 401 U.S. advertising agencies gives an average percentage share of billing volume from network television equal to 7.49%, and assume that σ equals 1.43 percent. Calculate a 95% confidence interval for the mean percentage share of billing volume from network television for the population of all U.S. advertising agencies. (Round your answers to 3 decimal places.) The 95% confidence interval is [ , ]. (b) Suppose that a random sample of 401 U.S. advertising agencies gives an average percentage share of billing volume from spot television commercials equal to 12.40%, and assume that σ equals 1.52 percent. Calculate a 95% confidence interval for the mean percentage share of billing volume from spot television commercials for the population of all U.S. advertising agencies. (Round your answers to 3 decimal places.) The 95% confidence interval is [ , ]. (c) Compare the confidence intervals in parts a and b. Does it appear that the mean percentage share of billing volume from spot television commercials for U.S. advertising agencies is greater than the mean percentage share of billing volume from network television? Explain. , confidence interval in (b) is totally the confidence interval in (a).

In an article in Marketing Science, Silk and Berndt investigate the output of advertising agencies. They describe ad agency output by finding the shares of dollar billing volume coming from various media categories such as network television, spot television, newspapers, radio, and so forth.

(a) Suppose that a random sample of 405 U.S. advertising agencies gives an average percentage share of billing volume from network television equal to 7.42%, and assume that σ equals 1.44 percent. Calculate a 95% confidence interval for the mean percentage share of billing volume from network television for the population of all U.S. advertising agencies. (Round your answers to 3 decimal places.)

The 95% confidence interval is            [, ].

(b) Suppose that a random sample of 405 U.S. advertising agencies gives an average percentage share of billing volume from spot television commercials equal to 12.40%, and assume that σ equals 1.56 percent. Calculate a 95% confidence interval for the mean percentage share of billing volume from spot television commercials for the population of all U.S. advertising agencies. (Round your answers to 3 decimal places.)

The 95% confidence interval is            [, ].

(c) Compare the confidence intervals in parts a and b. Does it appear that the mean percentage share of billing volume from spot television commercials for U.S. advertising agencies is greater than the mean percentage share of billing volume from network television? Explain.

(Click to select)YesNo , confidence interval in (b) is totally (Click to select)belowabove the confidence interval in (a).

In an article in Marketing Science, Silk and Berndt investigate the output of advertising agencies. They describe ad agency output by finding the shares of dollar billing volume coming from various media categories such as network television, spot television, newspapers, radio, and so forth.

(a) Suppose that a random sample of 396 U.S. advertising agencies gives an average percentage share of billing volume from network television equal to 7.48 percent, and assume that σ equals 1.49 percent. Calculate a 95 percent confidence interval for the mean percentage share of billing volume from network television for the population of all U.S. advertising agencies. (Round your answers to 3 decimal places.) The 95 percent confidence interval is [    ,    ].

(b) Suppose that a random sample of 396 U.S. advertising agencies gives an average percentage share of billing volume from spot television commercials equal to 12.49 percent, and assume that σ equals 1.55 percent. Calculate a 95 percent confidence interval for the mean percentage share of billing volume from spot television commercials for the population of all U.S. advertising agencies. (Round your answers to 3 decimal places.)

The 95 percent confidence interval is [    ,      ].

(c) Compare the confidence intervals in parts a and b. Does it appear that the mean percentage share of billing volume from spot television commercials for U.S. advertising agencies is greater than the mean percentage share of billing volume from network television? Explain. (Click to select)Yes or No , confidence interval in (b) is totally (Click to select)above or below the confidence interval in (a).

Consider a Ricardian world consisting of U.S. and Japan. Both countries produce and consume the same two goods: cars and computers. In U.S., it takes 400 hours of labor to make a car, and 100 hours of labor to make a computer. In Japan, it takes 400 hours of labor to make a car, and 200 hours of labor to make a computer. Each country has 2 billion hours of labor.

            a. What would the autarky equilibrium (i.e., the amount of each good produced and consumed as well as the relative price of each good) in these two countries be if each devotes 80% of its labor force to the production of cars and the rest to the production of computers? Show the autarky equilibrium for each country in a graph with the respective numbers on the graph.

            b. Which country has absolute advantage in cars? In computers? Why?

            c. Given the answer to b, would U.S. have any incentive to trade with Japan? Who has comparative advantage in what? Why?

            d. If there is free trade, what would the world relative price of a car be if both countries produce cars?

            e. If there is free trade, what would the wages in Japan relative to the wages in U.S. be if both countries completely specialize?

            f. Suppose there is free trade and the world demand for cars exceeds 5 million. Who would produce what? What would the U.S.'s commodity terms of trade be? What would the Japan's commodity terms of trade be? Which country would be `small'? Explain.

You can do the graphs by hand but your explanation/text has to be typed.

QUESTION 45

1. All of the following may be sources of revenue for a revenue bond EXCEPT

   		airports
   		user fees
   		tolls
   		property taxes

1 points   

QUESTION 46

1. Which of the following are factors that affect the marketability of municipal GO bonds?

   I. The quality

   II. Call features

   III. The issuer’s name

   IV. Credit enhancements

   		I and II
   		I, II, III, and IV
   		II and III
   		I, II, and III

1 points   

QUESTION 47

1. Investors who have international investments are subject to

   I. political risk

   II. currency risk

   III. regulatory risk

   		II and III
   		I and II
   		I and III
   		I, II, and III

1 points   

QUESTION 48

1. If the U.S. dollar has fallen in comparison with foreign currencies, which of the following statements is TRUE?

   		U.S exports increase.
   		Foreign currencies buy fewer U.S. dollars.
   		U.S. products cost more for foreign consumers.
   		U.S. exports are likely to fall.

1 points   

QUESTION 49

1. A registered representative may open all of the following customer account EXCEPT

   		a corporate account by a designated officer
   		a partnership account by a designated partner
   		a minor’s account by a custodian
   		an account in the name of Mr. Wegner for Mrs. Wegner

1 points   

QUESTION 50

1. Which of the following partnership documents needs to be filed with the secretary of state in the home state of the partnership?

   I. The certificate of limited partnership

   II. The partnership agreement

   III. The subscription agreement

   		I only
   		I and III
   		II and III
   		I, II, and III