The market for a particular chemical, called Negext, is described by the following equations.

Demand is given by:

$$Q^{\mathrm{D}}=100-5 P$$

Supply is given by:

$$Q^S=5 P$$

where Q is measured as units of Negext and P is price in dollars per unit.

Suppose that the government restricts emissions to 100 units of pollution. Graph the Negext market under this constraint. Find the new equilibrium price and quantity and show them on your graph. Compute how this policy affects consumer surplus, producer surplus, and the cost of pollution. Would you recommend this policy? Why?

Essence of Skunk Fragrances, Ltd., sells 7,900 units of its perfume collection each year at a price per unit of $385. All sales are on credit with terms of$1 / 10$, net$40$. The discount is taken by$65$percent of the customers. What is the amount of the company's accounts receivable? In reaction to sales by its main competitor, Sewage Spray, Essence of Skunk is considering a change in its credit policy to terms of$2 / 10$, net$30$ to preserve its market share. How will this change in policy affect accounts receivable?

Sam and Kolleen Hastings have two children. Sam was 30 years old when he first purchased a $125,000, 5-year term life insurance policy. He is now 35 years old and decides to increase the policy to$200,000. (a) What is his new annual premium? (b) What is his new monthly premium? (c) What total amount did he pay during the previous 5-year term? (d) What total amount will he pay for the next 5-year term?

Write true if the statement is true. If the statement is false, change the underlined word or words to make the statement true. Most logging in the United States today takes place on $\underline{\text{public}}$ lands.

Visit the web site of a retailer and check its prices and variety of products available online. Answer the following questions: (a) Does the site show pictures of the products? (b) Are you able to determine the full price, including shipping and other charges? (c) When can you expect to receive the goods ordered? (d) What are your payment options? (e) What types of personal information do you have to supply? (e) Does the site offer secure ordering and a privacy policy? (f) What is the return policy?

Fiscal and Monetary Policy Suppose that Congress passes a massive tax cut during an election year even though inflation is very high. What actions might the Fed take in response? Explain your answer.

Miami Solar manufactures solar panels for industrial use. The company budgets production of 5,000 units (solar panels) in July and 5,300 units in August. Each unit requires 3 pounds of direct materials, which cost $6 per pound. The company’s policy is to maintain direct materials inventory equal to 30% of the next month’s direct materials requirement. As of June 30, the company has 4,500 pounds of direct materials in inventory, which complies with the policy. Prepare a direct materials budget for July.

Do men and women differ in their attitudes toward public corruption and tax evasion? This was the question of interest in a study published in Contemporary Economic Policy (Oct. 2010). The data for the analysis were obtained from a representative sample of over 30,000 Europeans. Each person was asked how justifiable it is for someone to (1) accept a bribe in the course of their duties and (2) cheat on their taxes. Responses were measured as 0, 1, 2, or 3, where O = "always justified" and 3 = "never justified." The large-sample Wilcoxon rank sum test was applied in order to compare the response distributions of men and women. Again, women had a larger rank sum statistic than men. What does this imply about gender attitudes toward tax evasion?

Hospitalization Insurance An insurance policy pays an individual $\$ 100$ per day for up to 3 days of hospitalization and $\$ 25$ per day for each day of hospitalization thereafter. The number of days of hospitalization, $X$, is a discrete random variable with probability function

$$P(X=k)= \begin{cases}\frac{6-k}{15} & \text { for } k=1,2,3,4,5 \\ 0 & \text { otherwise. }\end{cases}$$

Calculate the expected payment for hospitalization under this policy. Choose one of the following. Source: Society of Actuaries.
a. $\$ 85$
b. $\$ 163$
c. $\$ 168$
d. $\$ 213$
e. $\$ 255$

Sagan became famous for helping the general public understand scientific concepts. How well does he explain the complex issues involved with nuclear weapons? Cite evidence to support your opinion.

Which is a way that the government is reducing ETS exposure? (a) Banning smoking in public places, (b) Distributing more tobacco licenses, (c) Forming youth antismoking groups, (d) Giving away air cleaners.

Compton Audio sells MP3 players. During 2019, Compton sold 1,750 units at an average of $225 per unit. Each unit costs Compton$150. At present, Compton offers no sales discounts. Compton’s controller suggests that a generous sales discount policy would increase annual sales to 2,200 units and also improve cash flow. She proposes 5/10, n/30 and believes that 70% of the customers will take advantage of the discount.

Required:

Explain why the sales discount policy might improve cash flow.

A donor wants to establish a fund that will pay the Marlin Public Library $10,000 per year for 20 years. If the fund earns 5% interest compounded annually, how much should be put into the fund?

Suppose a country enacts a tax policy that discourages investment, and the policy reduces the investment rate immediately and permanently from $\bar{s}$ to $\bar{s}^{\prime}$. Assuming the economy starts in its initial steady state, use the Solow model to explain what happens to the economy over time and in the long run. Draw a graph showing how output evolves over time (put $Y_t$ on the vertical axis with a ratio scale and time on the horizontal axis), and explain what happens to economic growth over time.