1. In the Harrod-Domar model, if the savings rate is 20% and the incremental capital output ratio is five, abstracting from depreciation, what is the implied growth rate? 2. Why must projects be appraised? What do we learn from project appraisals? 3. How does the Washington Consensus differ from the Santiago Consensus? 4. What economic benefits might a developing country gain by reducing corruption? Discuss only economic benefits and provide examples from specific developing countries. 5. Briefly explain the major argument of the factor endowment trade theory. 6. Provide a concise statement about the relationship between a developing country’s emphasis on the export of traditional commodities and: (a) export earnings stability; (b) comparative advantage; (c) terms of trade.

Mandalay hotel bases its budgets on guest-days. the hotel's static budget for august appears below: budgeted number of guest-days 4,300 budgeted variable costs: supplies (@$9.60 per guest-day) $ 41,280 laundry (@$9.40 per guest-day) 40,420 total variable cost 81,700 budgeted fixed costs: wages and salaries 57,190 occupancy costs 52,030 total fixed cost 109,220 total cost $ 190,920 the total cost at the activity level of 5,200 guest-days per month should be:

Ryan is deciding between attending western state university and eastern state university. he cannot attend both universities simultaneously. both are fine universities, but the reputation of western is slightly higher, as is the tuition. let mu subscript upper e and mu subscript upper w be ryan's marginal utilities from attending eastern and western state universities respectively and upper p subscript upper e and upper p subscript upper w be the prices of attending eastern and western state universities. using the rule of consumer optimum, ryan will decide to attend eastern state university, if mue/pe exceeds muw/pw attend eastern state university if mue/pe is less than muw/pw attend western state university, if pe/mue< pw/muw attend western state university, since it gives him more utility.

Dera diamonds inc. is a premium jeweler. its clientele includes movie stars, politicians, businessmen, and popular socialites. it has a team of jewelry experts that designs jewelry for each of its client from scratch. everything is made to meet the specific requirements of the clients, and no two jewelry pieces produced by this company has ever been identical. this is an example of