:Answer all questions correctly.

33.Monthly labor market reports issued by the Bureau of Labor Statistics primarily are based upon:

(a) initial claims for unemployment insurance reported by the 50 states;

(b) the National Income and Product Accounts; (c) an Establishment Survey and a Household Survey;

(d) data collected by each of the 12 Federal Reserve Banks.

34.In recent years, the labor force participation rate in the United States is closest to:

(a) 45%;

(b) 65%;

(c) 85%;

(d) 90%.

35.The top chemist for an industrial company loses her job because the company goes out of business. This chemist is now teaching high school chemistry. We might say that she is:

(a) under-employed;

(b) a discouraged worker;

(c) only marginally-attached to the labor force;

(d) structurally unemployed.

36. Which of the following puts a virtual floor under the unemployment rate (a level below which it is unlikely to fall)? (a) there will always be cyclical unemployment;

(b) there always will be unemployment among children;

(c) there always will be discouraged workers;

(d) there always will be "structural" unemployment (frictional plus structural unemployment).

37. Rising income inequality exacerbates rising wealth inequality partly because individuals with relatively higher incomes:

(a) almost always pay less in taxes than individuals with relatively lower incomes;

(b) tend to save more than their lower-income neighbors and can earn more non-wage and salary income;

(c) tend to live predominantly in low-cost areas of the country;

(d) tend to have more children than their lower-income counterparts who can contribute the their family's well-being.

38. Which of the following is the BEST way to define "Say's Law?"

(a) supply creates its own demand;

(b) continue to add capital until the marginal product of capital is zero;

(c) equilibrium takes place at the intersection of a supply curve and a demand curve;

(d) the act of producing output in a closed economy generates enough income to buy back all of the output produced.

39. Which of the following is NOT generally considered a determinant of the U.S. labor force participation rate? (a) the level of "discouragement" among unemployed persons;

(b) cultural factors, such as the willingness and ability of caregivers to work;

(c) frictional unemployment;

(d) demographics.

40. China and India tend to have higher sustained growth in real GDP than most developed market countries, because: (a) China and India have relatively more rapid population growth;

(b) China's and India's growth rates are measured off a smaller base than those of developed economies;

(c) China and India have made rapid real economic growth a top national priority;

(d) all of the above.

41. The M-1 monetary aggregate includes only the forms of money that are:

(a) most liquid;

(b) in savings accounts;

(c) the highest interest-earning assets;

(d) backed up by the gold reserves of the United States.

42. The Solow model implies all of the following, except:

(a) supply creates its own demand;

(b) countries that devote a relatively larger share of output to investment will be wealthier;

(c) growth will be faster the farther away a country's capital stock is from its steady-state;

(d) new ideas are the driving force behind long-run economic growth.

A Company had total assets and total liabilities at the beginning of the period of $7,300,000 and $4,000,000, respectively. At the end of the period the totals were $8,000,000 (total assets) and $3,600,000 (total liabilities). The company issued Common Stock for $600,000 and paid dividends of $250,000. What was the net income for the period if there were no other changes affecting Stockholders' Equity

Group of answer choices

$250,000

$350,000

$500,000

$750,000

A company reported total Stockholders' Equity of $540,000 at December 31, 2019, with 120,000 common shares outstanding. During the year ended December 31, 2020, the company reported the following:

3/31/2020- Issued 10,000 shares of $3 par value common stock at $42 per share.

7/1/2020- Purchased for treasury 1,000 shares of $3 par value common stock at $10 per share.

8/31/2020- Incurred an Other Comprehensive Loss of $12,000.

9/30/2020- Paid a cash dividends of $.50 per common share.

Net Income for the year $58,900.

What is the amount of Stockholders' Equity as of December 31, 2020?

Group of answer choices

$938,900

$560,900

$948,900

$932,400

ABC Inc., a calendar year retailer that sold ice skates, had the following amounts at December 31, 2020:

Net Sales $938,500

COGS 475,300

Operating Expenses 123,700

Other Income and (expense) 10,200

Other Comprehensive Loss (4,400)

Current taxes payable 20,800

Net Income 221,900

What was ABC's provision for income taxes?

Group of answer choices

$107,800

$123,400

$117,600

$127,800

ABC Corp. had $65 million in pretax accounting income this year. This included estimated warranty expense of $7 million, which is not deductible for tax purposes. Instead, ABC may deduct $5 million of actual warranty costs on its tax return. There were no other temporary or permanent book-tax differences. What is ABC's taxable income for the year?

Group of answer choices

$67 million

$60 million

$72 million

$70 million

RST Incorporated purchased 15,000 shares of its $2 par value common stock on September 23, 2018, for $24 per share. They plan to hold these shares in treasury. RST sold 10,000 of these shares on January 10, 2019, for $22 per share. Which of the following is true regarding the sale on January 10, 2019?

Group of answer choices

Equity increases $360,000.

Equity increases $240,000.

Equity increases $20,000.

Equity increases $220,000.

Foodsource Company purchased a sanitizing machine from the manufacturer by agreeing to pay $15,000 every three months during the next three years beginning three months after the purchase date. The effective market interest rate for this type of arrangement is 8%. Additional information:

PV of $1 PVA of $1

n/i 2% 8% 2% 8%

3 .94232 .79383 2.88388 2.57710

9 .83676 .50025 8.16224 6.24689

12 .78849 .39711 10.57534 7.53608

What value should Foodsource record for the liability (and the machine) on the purchase date? (Round to nearest dollar).

Group of answer choices

$113,041

$50,205

$158,630

$122,434

XYZ, Inc. uses the indirect method for the operating section of the Statement of Cash Flows. What is the net cash flow from operations based on the following information?

Accounts Receivable increased $4,000

Wages payable increased$5,000

Depreciation Expense$9,000

Net Income$125,000

Dividends Paid$33,000

Prepaid Rent decreased$1,500

Gain on the sale of equipment$1,200

Group of answer choices

$135,300

$137,700

$131,500

$103,500

On January 1, 2019, QRS Company granted 80,000 stock options to certain executives. The options may be exercised on or after December 31, 2022, and expire on January 1, 2026. Each option can be exercised to acquire one share of $1 par common stock for $5. The fair value of each options was estimated to be $3 on the grant date. What amount should QRS recognize as compensation expense for 2020?

Group of answer choices

$240,000

$60,000

$80,000

$100,000

During its first year of operations, ABC Co. reported income before taxes of $550,000 and taxable income of $600,000. The difference was due solely to book depreciation of $250,000 and tax depreciation of $200,000. The effective tax rate for the current and future years is 25%. Assuming this is the only temporary or permanent difference in book and taxable income, what amount of Deferred Tax Asset (DTA), or Deferred Tax Liability (DTL), would ABC record at year end?

Group of answer choices

$12,500 DTA

$12,500 DTL

$150,000 DTL

$137,500 DTA

Smith, Inc. issued $20,000,000 of its 5% bonds at par. Two weeks later the bonds were trading on the exchange at 102 (102% of face value.) Which explanation of a change in the market rate between the issue date and two weeks later is most likely?

Group of answer choices

The change in the market rate cannot be determined.

The market rate stayed the same.

The market rate decreased.

The market rate increased.

Alden Trucking Company purchased some trucks from Kenworthy Co. by issuing an installment note for $37,908,000 on January 1, 2018. The note agreement requires Alden to pay $10 million annually, starting on December 31, 2018 and continuing for a total of four more years (final payment December 31, 2022). Kenworthy charges the market interest rate of 10%. After the first payment was made on December 31, 2018, what was the installment note liability for the trucks on Alden's books? (Round to the nearest dollar).

Group of answer choices

$40,000,000

$32,908,000

$27,908,000

$31,698,800

QUESTION 4 A total of n 2 2 car drivers wish to travel from Start to End. There are two routes (see Figure 1 below): one North, through city A and the other South, through city B. The travel time in minutes on the road from Start to city A is equal to the number of drivers who have chosen that route (T,) divided by 10, while on the road from Start to city B it is a constant 45 minutes; then the road times switch from A and B to End: it is a constant 45 minutes from city A to End, while from city B to End it is equal to the number of drivers who have chosen that route (T,) divided by 10. View this situation as a simultaneous game where each of the n drivers simultaneously chooses whether to take the A route or the B route and each driver's objective is to minimize the amount of time it takes to go from Start to End. 10 1 = 45 START END START END 01 = 1 1 = 45 10 B B Figure 1 Figure 2 (a) (a.1) Find all the pure-strategy Nash equilibria of this game when n is an odd number. [ Prove your claim.] (a.2) List all the pure-strategy Nash equilibria of this game when n = 3. (b) Find all the pure-strategy Nash equilibria of this game when n is an even number. [Prove your claim.] (c) What is the average travel time (or the travel time per driver) at a Nash equilibrium when n = 400? From now on assume that # = 400. A two-way road has just been added between city A and city B and it takes 10 minutes to travel from one city to the other along this new road (see Figure 2 above). Thus each driver has now four choices: (1) go to A and continue on from there to End (call this route A), (2) go to A then drive to B along the new road and then continue from B to End (call this route AB), (3) go to B and continue from there on to End (call this route B), (4) go to B then drive to A along the new road and then continue from A to End (call this route BA). Travel times are as explained above; thus, for example, taking the AB route takes + 10+ ," minutes, where , is the number of drivers who take route x). Suppose that each driver has to irrevocably decide at the beginning (that is, at Start) which route to take (e.g. these are driverless cars that have to be programmed at the beginning of the journey). (d) Are there any pure strategies that are strictly dominated? (e) Find a pure-strategy Nash equilibrium (one is enough for this part). (f) Comparing the average travel time at the Nash equilibrium of part (e) with the average travel time found in part (c), has the new road between cities A and B made the drivers better off ? (g) Write a system of inequalities that are necessary and sufficient for finding all the pure-strategy Nash equilibria. (h) Find all the pure-strategy Nash equilibria (that is, find all the solutions to the system of inequalities of part (@)).4: [25 points] Consider the following epidemic model (Kermack and Mck- endrick, 1927), which is called the "SIR" model: ds SI. it N (4.1) N SI - VI, dt (4.2) dR = VI. (4.3) dt Here, S, I, and R denote susceptible, infected, and recovered individuals, respectively. Three parameters, 8 > 0, > > 0, and N > 0, represent a transmission rate, a recovery rate, and a fixed population ( N = S + / + R), respectively. Complete the following derivations to convert Eqs. (4.1)-(4.3) into the following equations: S = S(0)e (R()-R(0)) (4.4) I = N - S(D)e No (R()-R(0)) - R, (4.5) dR dt =V N - R - S(Oje (R(t)-8(0) ), (4.6) where S(0) and R(0) represent the initial values of S and R, respectively. (a) Show S + I + R = constant = N (4.7) (i.e., 18+1+8) = 0). (b) Apply Eqs (4.1) and (4.3) to obtain the following: R' NV Integrate the above Eq. to obtain Eq. (4.4), yielding S = S(R). (c) Apply Eqs. (4.4) and (4.7) to find Eq. (4.5) for /, which is a function of R. (d) Apply the above to obtain Eq. (4.6). (e) Briefly discuss how to analyze Eq. (4.6) to reveal the characteristics of the solution. Note that based on Eqs. (4.4)-(4.6), we can obtain the solutions by solving a single first order ODE in Eq. (4.6) for R(t), and then compute S(t) and R(t) using Eqs. (4.4) and (4.5), respectively.Chapter 6, Problem 3CP 3 Bookmarks Show all steps: ON CKG Auto compact car manufacturing assembly plants rely on parts from multiple outside vendors and internal subassembly plants. Currently, these parts are all transported via independent trucking firms for negotiated fees based on actual tons shipped and miles. The operations management group has been dissatisfied lately with the service levels provided by these outside trucking companies, as well as with the rising costs of roughly 6.0% per year for the last two years. These costs are expected to rise in the foreseeable future at similar rates, according to industry analysts. The operations management group is beginning a study to determine if purchasing or leasing a fleet of trucks would be a more cost-effective solution over the next seven years. To do so, the group has compiled some of the costs for each transport option, as follows: (1) Trucking by others-Using several different trucking carriers, the CKG Auto compact car manufacturing group currently pays $12,000,000 annually in trucking fees. Again, these costs are expected to rise at an annual rate of 6%. So in year 1, the cost is expected to be $12 million plus an additional 6%. All costs are considered expenses, which can be used to reduce income for purposes of calculating taxes. (2) Buying trucks-If CKG Auto purchased a fleet of 20 trucks, the cost of such a purchase would be based on the following: . The model of truck being considered with trailers is estimated to cost $125,000 per truck. This amount will be spent in year 0 (now). . This purchase would be funded using a bank loan. The bank is willing to lend the money at a 4.75% annual interest rate compounded quarterly over the next four years. A 10% down payment will be required, which can be funded from current assets. . The operations management group has been directed to assume that if CKG Auto purchases this fleet, it would be depreciated using straight line depreciation over the full seven-year period, assuming a salvage value of 8% of the original purchase price. . Operating costs for year 1 are estimated at $3.80 per mile; this includes driver wages, gas, insurance, maintenance, fees, and licenses. It is also assumed that each truck will average 150,000 miles per year. For year 2 and all subsequent years, assume a cost increase of 3.5% per year above the previous year. . For the calculation of taxes, CKG Auto can deduct from each year's income the following: operating costs, the interest portion of the loan payments, and depreciation