5. Assume a firm has a market value of $500, it has 50 units of capital with a price of $8 per unit. Compute Tobin’s q to determine whether the firm should invest in more capital.

    q = __________.    Invest? (Yes or no) __________

     6 – 7 Assume G = 50, T = 55, B = 200 and i = 5%.

6. What is the primary budget balance and dollar value of the balance?

Balance (surplus of deficit)? ___________ Amount of surplus or deficit = $________.

7. What is the total budget balance and balance amount?

Balance (surplus of deficit)? ___________ Amount of surplus or deficit = $________.