On January 1, 2016, Sophie’s Internet Cafe owned 10 computer terminals valued at $8,000. During 2016, Sophie’s bought 5 new computer terminals at a cost of$1,000 each, and at the end of the year, the market value of all of Sophie’s computer terminals was $11,000. What was Sophie’s gross investment, depreciation, and net investment?

Use the following information to work Problems 8 to 10. IMF says it battled crisis well The International Monetary Fund (IMF) reported that it acted effectively in combating the global recession, especially in Eastern Europe. The IMF made $163 billion available to developing countries. The IMF required countries with large deficits to cut spending or not increase it, but it urged the United States, Western European countries, and China to run deficits to stimulate their economies.

The Center for Economic and Policy Research in Washington, D.C., claims that the IMF didn’t allow developing countries that were looking for loans to expand their deficits sufficiently. Would these countries have weathered the global recession better if they had obtained larger loans from the IMF?

Explain why the supply of loanable funds and the demand for loanable funds decreased during the global financial crisis of 2007–2008. Draw a graph of the loanable funds market before the crisis and use your graph to illustrate the source and effects of the crisis on saving, investment, and the real interest rate.

Financial capital is the ________.

A. money used to buy stocks and bonds

B. money used to buy physical capital

C. funds that savers supply and buyers of physical capital borrow

D. money in the bank

A dietitian in a hospital is to arrange a special diet composed of three basic foods. The diet is to include exactly 340 units of calcium, 180 units of iron, and 220 units of vitamin A. The numb er of units per ounce of each special ingredient for each of the foods is indicated in the table.

$$\begin{matrix} \text{} & \text{} & \text{Units per Ounce} & \text{}\\ \text{} & \text{Food A} & \text{Food B} & \text{Food C}\\ \text{Calcium} & \text{30} & \text{10} & \text{20}\\ \text{Iron} & \text{10} & \text{10} & \text{20}\\ \text{Vitamin A } & \text{10} & \text{30} & \text{20}\\ \end{matrix}$$

(A) How many ounces of each food must be used to meet the diet requirements? (B) How is the diet in part (A) affected if food C is not used? (C) How is the diet in part (A) affected if the vitamin A requirement is dropped?

On January 1, 2016, Terry’s Towing Service owned 4 tow trucks valued at $300,000. During 2016, Terry’s bought 2 new trucks for a total of$180,000. At the end of 2016, the market value of all the firm’s trucks was $400,000. What was Terry’s gross investment? Calculate Terry’s depreciation and net investment.

Two sociologists have grant money to study school busing in a particular city. They wish to conduct an opinion survey using 600 telephone contacts and 400 house contacts. Survey company A has personnel to do 30 telephone and 10 house contacts per hour; survey company B can handle 20 telephone and 20 house contacts per hour. How many hours should be scheduled for each firm to produce exactly the number of contacts needed?

Mary makes 10 pies and 20 cakes a day and her opportunity cost of producing a cake is 2 pies. Tim makes 20 pies and 10 cakes a day and his opportunity cost of producing a cake is 4 pies. If Mary and Tim specialize in producing the good in which each has a comparative advantage, ______.

A. Mary produces only pies

B. Tim produces both pies and cakes

C. Mary produces only cakes while Tim produces only pies

D. Tim produces only cakes while Mary produces only pies

Sort the items into four groups: those that change the production function, those that change the demand for labor, those that change the supply of labor, and those that do not change the production function, the demand for labor, or the supply of labor. Say in which direction each change occurs.

Draw a graph of the production functions in South Korea and the United States. Mark a point on each production function that shows potential GDP per hour of work in each economy. Explain the difference in the two production functions.

Draw a graph of the demand for and supply of labor in South Korea and the United States. Mark a point at the equilibrium quantity of labor per person per week and the real wage rate in each economy. Explain the difference in the two labor markets.

Country A and a country B both have the production function $Y=F(K, L)=K^{1 / 3} L^{2 / 3}$.

Does this production function have constant returns to scale? Explain.

A company markets exercise DVDs that sell for $19.95, including shipping and handling. The monthly fixed costs (advertising, rent, etc.) are$24,000 and the variable costs (materials, shipping, etc) are $7.45 per DVD. (A) Find the cost equation and the revenue equation. (B) How many DVD s must be sold each month for the company to break even? (C) Graph the cost and revenue equations in the same coordinate system and show the break-even point. Interpret the regions between the lines to the left and to the right of the break-even point.

Dr. J. D. Robinson published the following estimate of the ideal body weight of a woman: $49 \mathrm{kg}+1.7 \mathrm{kg}$ for each inch over 5 ft. (A) Find a linear model for Robinson's estimate of the ideal weight of a woman using $w$ for ideal body weight (in kilograms) and h for height over 5 ft (in inches). (B) Interpret the slope of the model. (C) If a woman is $5^{\prime} 4^{\prime \prime}$ tall, what do es the model predict her weight to be? (D) If a woman weighs 60 kg, what does the model predict her height to be?