2.07 Graded Assignment: Lab Questions Saving More Tomorrow

1. Shlomo Benartzi begins his talk by outlining three things that we as a people are not doing well. What are these three things? Do you agree or disagree with his evaluation of these things?

2. What is behavioral finance? What does behavioral finance have to do with personal and family finance?

3. What are some of the behavioral obstacles that influence personal finance as described by Benartzi?

4. What is Benartzi’s solution to all of these behavioral challenges that effect personal finance? How does improved personal finance benefit the economy in general?

What We Learned from Teetering on the Fiscal Cliff

1. Based on what Davidson says, how would you describe the term ’fiscal cliff’?

2. Davidson describes two fundamentally different economic philosophies that both impact the debt crisis that the US faces. What are these philosophies? Do you agree with one more than the other?

3. Davidson offers several solutions to the major issues, stating that fiscally we are actually not a nation that is divided on the major issues. What are some of the fiscal solutions that he mentions tweaking?

4. While Davidson outlines several issues that the parties are actually not terribly divided on, he also outlines two issues that are hyper-partisan. What are these fiscal issues and why do you think that the parties are so divided? Do you lean towards the Democrat or Republican view on these issues?

5. Towards the end of his talk, Davidson discusses a fear. What is this fear? How does this fear, as well as his entire discussion of the fiscal cliff, relate back to economic factors that influence our personal finances?

Ida sidha karya company is a family-owned company located on the island of bali in indonesia. the company produces a handcrafted balinese musical instrument called a gamelan that is similar to a xylophone. the gamelans are sold for $860. selected data for the company’s operations last year follow: units in beginning inventory 0 units produced 320 units sold 285 units in ending inventory 35 variable costs per unit: direct materials $ 135 direct labor $ 355 variable manufacturing overhead $ 30 variable selling and administrative $ 15 fixed costs: fixed manufacturing overhead $ 64,000 fixed selling and administrative $ 27,000 the absorption costing income statement prepared by the company’s accountant for last year appears below: sales $ 245,100 cost of goods sold 205,200 gross margin 39,900 selling and administrative expense 31,275 net operating income $ 8,625 required: 1. under absorption costing, how much fixed manufacturing overhead cost is included in the company's inventory at the end of last year? 2. prepare an income statement for last year using variable costing. what is the amount of the difference in net operating income between the two costing methods?

At the end of year 2, retained earnings for the baker company was $3,550. revenue earned by the company in year 2 was $3,800, expenses paid during the period were $2,000, and dividends paid during the period were $1,400. based on this information alone, retained earnings at the beginning of year 2 was:

Cooper sues company a in state court in south carolina, where he lives, for negligence alleging personal injury and property damage of $100,000 after a truck driven by an employee of company a rear-ended his pickup truck. company a is incorporated in delaware, has its headquarters in new york, but does a substantial amount of business in south carolina. claiming diversity of citizenship, company a seeks removal to federal district court, but cooper opposes the motion. which of the following is true regarding whether the case may be properly removed to federal district court? the amount in controversy satisfies diversity requirements; and if company a's nerve center is in a state other than south carolina, then the case may be properly removed to federal court. the amount in controversy satisfies diversity requirements; and because company a is incorporated and has its headquarters in a state other than south carolina, the case may be properly removed to federal court. because the amount in controversy satisfies diversity requirements and company a is incorporated in a state other than south carolina, the case may be properly removed to federal court regardless of where company a's headquarters, nerve center, or principal place of business is located. because the amount in controversy satisfies diversity requirements and company a is headquartered in a state other than south carolina, the case may be properly removed to federal court regardless of where company a is incorporated and regardless of the location of its nerve center. because the amount in controversy fails to satisfy jurisdictional requirements, regardless of the location of company a, the case may not be removed to federal court.