For an economy with a tax rate of 10%, the following is given: C = 60 + 0.8YD

G = 400

I = 140

NX = 10 - 0.20Y

(I) If the economy produces $1 of extra output, how much of it is;
(a). spent on domestic goods?
(b). import expenditure?
(c). saved?
(II)
(a). Compute the multiplier.
(b). Calculate the equilibrium level of national income?
(c). What is the value of consumption expenditure in equilibrium?
(d). Assume all taxes are collected. Is the Government experiencing a budget deficit in
equilibrium? Why?
(e). Is the economy experiencing a trade deficit? Why?
(f) What is the value of national asset formation when GDP is in equilibrium?
(g) If government increases its spending by 25%, what would be the equilibrium level of
national income when all spending rounds are exhausted?
(h). Assume that these results referred to the economy your country. Briefly discuss the
implications of each of the results for your country’s economy.

1. the political environment in india has proven to be critical to company performance for both pepsico and coca-cola india. what specific aspects of the political environment have played key roles? could these effects have been anticipated prior to market entry? if not, could developments in the political arena have been handled better by each company? 2. timing of entry into the indian market brought different results for pepsico and coca-cola india. what benefits or disadvantages accrued as a result of earlier or later market entry? 3. the indian market is enormous in terms of population and geography. how have the two companies responded to the sheer scale of operations in india in terms of product policies, promotional activities, pricing policies, and distribution arrangements? 4. “global localization” (glocalization) is a policy that both companies have implemented successfully. give examples for each company from the case.

The cost of the beginning work in process inventory was comprised of $3,000 of direct materials, $10,000 of direct labor, and $10,000 of factory overhead. costs incurred during the period were comprised of $15,000 of direct materials costs, and $100,000 of conversion costs. the equivalent units of production (eup) for the period were 9,000 for direct materials and 6,000 for conversion. the costs per eup were:

Gwen, a manager at exude apparels inc., received a message from a customer requesting a replacement for a purchased pair of shoes. exude apparels has a clearly stated no-return policy. gwen responded to the customer denying the request in a tactful and clear manner. despite this, the customer submitted a second request. in this scenario, which of the following is an appropriate response to the second request?