Chapter 26 and 27
Problems
Week 3, Class 1
Iljazovic Jasmila
Problem no. 1
State whether the following provisions impair or preclude
negotiability, the instrument in each instance being
otherwise in p
Ch. 22 Performance
Problems
Iljazovic Jasmila
Problem No. 2
Smith,
having contracted to sell to
Beyer thirty tons of described fertilizer,
shipped to Beyer by carrier thirty tons
of fertilizer, which
AUB ECON 102
Ch.1- Limits, Alternatives and Choices
Ch.2- The Market System and the Circular Flow
1- Definition of Economics
2- The Economic Perspective (Ch 1)
Scarcity, Choices and Opportunity Cost
Exam
Name_
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the quest
Refer to the information provided in Figure 1.1 below to answer the questions that follow.
Ch 26- Problems Solutions
Problems p. 590
#1. Growth Rate in Real GDP= 4% [(31,200-30,000)/30,000 x 100]
Real GDP per capita (year 1) = 300
(30,000/100)
Real GDP per capita (year 2) = 305.9 (31,200/10
ECON 102
Ch. 31: Fiscal Policy, Deficits and Debt
1- Fiscal Policy and the AD-AS Model
a- Expansionary Fiscal Policy
Increased Government Spending(G)
Tax Reductions (T)
Combined G Increases and T R
ECON 102
Ch 32- Problems Solutions
Review Questions p.729
#1- d.
#3- a. it will rise by a third ($V= 1/ 0.75 = $1.33)
#6- b.
Problems p.730
#2- withdrawal of $200 of cash from a checking account
By wh
ECON 102
Ch. 28 - Problem on Multiplier
Assume the MPC is 0.8 and the change in Investment is $10.
a- Complete the following table
Change in
Income
Change in
Consumption
Change in
Saving
Increase in
I
Dr. Nabil Nehme
Contemporary Engineering Economics, Copyright 2010
Composite Cash
Flows
Situation 1: If you
make 4 annual deposits
of $100 in your savings
account which earns a
10% annual interest,
w
Dr. Nabil Nehme
Contemporary Engineering Economics, Copyright 2010
Economic Equivalence
What do we mean by economic
equivalence?
Why do we need to establish an economic
equivalence?
How do we measure
Dr. Nabil Nehme
Contemporary Engineering Economics, Copyright 2010
Types of Common Cash
Flows in Engineering
Economics
Single cash flow
Equal (uniform)
payment series at regular
intervals
Linear gr
Dr. Nabil Nehme
Contemporary Engineering Economics, Copyright 2010
Equal Payment Series
0
A
A
1
F
2
N
A
P
0
1
N
2
0
Dr. N. Nehme
N
2
Equal-Payment Series Compound Amount Factor
Formula
F
0
A
A
A
1
2
Dr. Nabil Nehme
Contemporary Engineering Economics, Copyright 2010
Commercial Loans
Amortized Loans
Effective compound interest rate is
specified
Paid off in installments over time
Examples: Home m
Dr. Nabil Nehme
Contemporary Engineering Economics, Copyright 2010
Linear Gradient Series
A Strict Gradient Series
Gradient Series as a Composite Series of a Uniform Series
of N Payments of A1 and the
Dr. Nabil Nehme
Contemporary Engineering Economics, Copyright 2010
Understanding Money and Its
Management Main Focus
1. If payments occur more frequently
than annual, how do you calculate
economic equ
Dr. Nabil Nehme
Contemporary Engineering Economics, Copyright 2010
Chapter
Opening Story
Take a Lump
Sum or Annual
Installments
Mr. Robert Harris won a
lottery worth $275 million.
He had two options:
Ch.25: Measuring Domestic Output and National Income
1- Assessing the Economys Performance: Macro Objectives
2- Gross Domestic Product (GDP)
Definition
Market value: a monetary measure, Example
Fin
Ch.26- Economic Growth (pp.568-578)
1- Definition
2- Growth as a Goal
3- Arithmetic of Growth
4- Institutional Structures that Promote Growth
Strong Property Rights; Patents and Copyrights;Efficient F
Chapter 23 (Problems) Transfer of
Title and Risk of Loss
Week 2 Class 1
Iljazovic Jasmila
Problem No. 2
Regan received a letter from Chase, the material
portion of which stated: Chase hereby places an
Preparation for the exam
Week 4, Class 1
Chapter 21 Introduction to
Sales and Lease
Nature of Sales and Leases
Goods
movable, tangible personal
property
Sale
transfer of title to goods from seller
t
ECON 102
Ch. 30- Problems Solutions
Review Questions:
1- d
2- b
4- a,c
5- a
6- Effect on AD and AS, PE and QE (assuming the price level is flexible upward
and downward)
abcdefghij-
AD shifts left => P
ECON 102
Ch. 28 - Problem on Multiplier
Assume the MPC is 0.8 and the change in Investment is $10.
a- Complete the following table
Increase in
Investment of $10
Change in
Income
Change in
Consumption
Ch. 27: Business Cycles, Unemployment and Inflation
1-Business Cycles
Definition
Phases of the business cycle: Peak, Recession, Trough, Expansion
Causes of Economic Shocks: Irregular innovations, Prod
ECON 102
Ch. 25- Problems Solutions
Review Questions
#2- a, e
#3- b. $1,100,000
Starting Capital= $1million; Gross I= $150,000; D= $50,000 so
Net I=$100,000
End of Year Capital= $1,100,000
#4- c. $20
ECON 102
Ch 27- Problems Solutions
Review Questions p. 611
#3- a- U= 10% (1million/10 million x100)
#4- a. Frictional
b. Cyclical
c. Structural
d. Structural
#9- d- Nominal i= 7% (4% real i + 3% expec
ECON 102
Ch. 33: Money Creation (bring book to class)
1- From the Goldsmiths to the Fractional Reserve System
2- A Single Commercial Bank Workings: Effect on Balance Sheet
Creating a Bank
Acquiring Pr
Ch. 29: The Aggregate Expenditures Model (bring book to class)
1- Simplifications
2- C and Ig Schedules
3- Equilibrium GDP (Private Closed economy): C +Ig = GDP
Tabular and Graphical Analysis(Table 29
ECON 102
Ch 31- Problems Solutions
#1- MPC= 0.8
Recession
Need to shift the AD to the right by $25billion
(a)
G should rise by: Change in AD/K = 25/5= 5
as K= 1/1-MPC = 1/0.2 = 5
(b)
T cut = Change in