ECON240 Final Exam Fall 2019

ECON240 Final Exam Fall 2019 –
Do All Problems (note there are 110 points, you will be graded out of 100)
1) 5 pt Wanda’s will power is 25% in convincing people to vote for her. She needs 50% of
the vote to win. Assuming everyone votes, in order for Wanda to win what percentage of
people must already be planning on voting for her?
2) 10pt Paula wants to help plan for environmental protection for the next hundred
years. Her financial expert is currently using a discount rate of 10% to determine the
present value of several different projects. Relative to today, what must the environment
be worth in 100 years to be counted of equal value ? Discuss how realistic this would be.
What would the discount rate have to be so that so that an environment worth twice as
much as today, would be counted as of equal value?
3) 25pt Take the (correct) answers from problem 4 of Homework 8/9, and answer the
following:
i) Assume M = 500, P
f = 25, Pt = 100, and the person starts with no training: What is
the optimal quantity of food, morsel size, number of bites, training, and savoring factor?
ii) What are the optimal amounts if the person started with 4 hours of training?
iii) Assume that training (when not used) atrophies at 2 units of year. Given the answer
for i) and ii) how much would utility decline after one year of atrophy? Does this change
optimal behavior?
iv) Describe and explain what might be missing from the model used.
v) Attempt to use formulas to represent your answer for iv)

4) 40 pt Consider two-person households, which run on the principle each should
experience the same utility from consumption. Let C
1 = Person 1’s consumption, and
C
2 = Person 2’s consumption. They have $90/day to spend on consumption for the whole
household.
a) Assume the individual’s utility equals how much they consume. Determine how much
each will consume, and what their utility levels will be
b) In this case the first person feels competitive with the second, but the second feels
compersion for the first. Their respective utility functions are as follows:
U
1 (C1,C2) = C1 * ( C1/C2), U2(C1,C2) = C1 * C2
Determine how much each will consume, and what their utility levels will be.
c) Let the household be as if in part b. However, person 1 can increase the second
person’s sense of compersion by giving a small gift that costs k. When they do utility
functions become:
U
1 (C1,C2) = (C1 – k) * [ (C1 – k) / (C2 + k) ] , U2(C1,C2) = (C1 – k)2 * (C2 + k)
Determine the formulas for C
1 and C2. If k = .5, determine how much each consumes
and their utility levels.
d) Describe how the gift changed their relationship and shares of consumption.
e) Assume that a person must consume at least $5/day to sustain the household. Which of
the above scenarios are sustainable as they are. Are there any where the gift giving
becomes problematic ? What endogenous constraints would be required to make it
sustainable (determine the new consumptions levels and utilities be, can the household
still run by the equal utility principle?)

5) 30 pt Imagine the following: A new social media platform “Space2Pace” has an
architecture where messages are delayed by m minutes before being sent. The sender
can cancel the message within those m minutes. Researchers show that the fraction of
regrettable messages cancelled by users (r) based on the following formula:
r = .10 * m
1/2
the users utility was based on the formula:
U = n – x
2
Where n = number of messages they write an hour ,
x = number of messages they wish they hadn’t sent per hour.
When expressing physically, messages take 1 minute to write, but 50% are regrettable.
When expressing emotionally, messages take 3 minutes to write, and 20% are regrettable
When expressing rationally, messages take 11 minutes to write, and 5% are regrettable
p = probability of message being regrettable, g = number of regrettable messages written
Users can work (or wait) on only one message a time (hint: how are g and x related?)
i) Fill in the following table:

Mindset m t p n g r x Utility
Physical 0
Emotional 0
Rational 0
Physical 1
Emotional 1
Rational 1
Physical 4
Emotional 4
Rational 4
Physical 9
Emotional 9
Rational 9

ii) For each mindset state the optimal available delay time.
iii) For each delay time, state the optimal mindset
iv) Given this information, how would you market “Space2Pace”?
Keep in mind that m =0 implies it is the same as regular email.

Business Outcomes Ethics Questions

You are the general manager of a regional chemical company. In the course of producing your bulk chemicals, large amounts of particles and smoke are emitted through your plant’s smokestack.

· The level of pollutants is below current EPA regulations, and you are violating no laws,

· but neighborhood groups are complaining about minor health problems caused by the smoke.

After investigating numerous alternatives, you find the most effective solution would be to install a “scrubber” system which will remove 90% of the pollutants and ash. Coat =$1 million. Do you install the system?

Identify three stakeholders and at least two specific ethical considerations or questions for each of the stakeholders you select.

Assignment 1.2: A Changing World Final Paper

Assignment 1.2: A Changing World Final Paper Due Week 5 and worth 140 points  The discovery of America and that of the passage to the East Indies by the Cape of Good Hope, are the two (2) greatest events recorded in the history of [human] kind” – Adam Smith, in The Wealth of Nations,1776. Think about why he and many other notables supported this statement, especially concerning the discovery of America. What was so important about this New World across the Atlantic Ocean from Europe?  How did it change globalization in terms of trade, culture, societies, innovations, new and old world exchanges, and in other ways?  You have already developed a thesis statement and developed an outline in which you identify three (3) main points relevant to your topic. Now you will develop the final paper in which you explore your main points in detail.  Write a three to five (3-5) page paper in which you: Introduce your paper with your previously crafted thesis statement. Identify three (3) major aspects that demonstrate Old and New World exchanges. Explain your responses with specific examples and details. Identify three (3) specific groups that were affected by this global event and provide two (2) examples for each group describing how the group was affected. Summarize how this discovery affected the life of the average working American during the colonial period. Use specific examples and details. Use at least three (3) academic references besides or in addition to the textbook. Note: Wikipedia and other similar websites do not qualify as academic resources. Your assignment must follow these formatting requirements: This course requires use of Strayer Writing Standards (SWS). The format is different than other Strayer University courses. Please take a moment to review the SWS documentation for details. The specific course learning outcomes associated with this assignment are: Recognize the main factors that led to America’s early development. Use technology and information resources to research issues in American history to 1865. Write clearly and concisely about American history to 1865 using proper writing mechanics. Click here to view the grading rubric.

Financial Statements

Conduct research and compare two companies’ financial statements.

(Adapted from CT9-4, A, B, and C in Survey of Accounting.)

Complete the following steps:

1.Choose a pair of two competing companies from the list below:

  • Coca-Cola and PepsiCo
  • Home Depot and Lowes
  • Walmart and Target
  • Nike and Adidas

2. Go to the address below:

3. Type in the first company’s stock symbol or name. (Use “symbol lookup”.)

4. Under the “Fundamentals” heading, use the Growth, Profitability, Financial health, Price ratios, and Management effectiveness tabs to respond to the requirements below.

5. Enter the second company’s stock symbol or name, and repeat the process.

6. Write a 750–1,000-word report that provides an evaluation of the liquidity, solvency and profitability for each company, relative to each other and to industry averages.

Be sure to cite three-five relevant sources in support of your content.

Negotiation Event

Negotiation Event

Most individuals have participated in several larger negotiation events at some time or other. For example, you might have negotiated a car purchase, a home purchase, an apartment rental, the planning of a wedding, a business partnership, a babysitting arrangement, or even an agreement to take care of someone’s yard for the summer.

Reflect on your negotiation history and identify a significant negotiation experience (in terms of size and scope).

For the first paragraph of your initial post, describe the negotiation event, including the participants, the key issues, and the outcome.

For the second part of your initial post, evaluate any one of the following starter bullet points, using research on course concepts to support your analysis.

Negotiations tend to follow stages or phases similar to the stages in decision making,      including preparation, information sharing, problem-solving, and resolution. How would you categorize the events of your negotiation example into those stages? How did behaviors of the parties involved change during each stage?

What BATNAs were available in your negotiation example? How were BATNAs determined? How were the BATNAs used? How did the integrative approach versus the distributive approach to the negotiation influence the role of the BATNAs in your scenario?

What interests were evident in your example? Which ones were substantive interests? Which  ones were process interests? Which ones were relational interests? How did the parties reveal or discover the interests?

How did the interests impact the negotiation?

How did stereotyping influence the negotiation? How did other types of perception,      selective perception, or perceptual distortions impact the process?

What positive and negative emotions impacted the negotiation? Why did those emotions  surface? Did they come about because of:

  1. The process being used
  2. The way the negotiation developed
  3. The relationship between the parties
  4. The outcomes being discussed
  5. The alternatives that existed

How could emotions have been used to enhance the negotiation (positive impact), or      what could be done to reduce the effect of negative emotions in your negotiation?

How did the parties show their familiarity or lack of familiarity with the building      blocks of negotiation?

How might the negotiation have been different if the parties had been familiar with the building blocks?

What types of leverage were available in the scenario? In what ways was the leverage used or not used? How was leverage used in an ethical or unethical way?      How did leverage alter the negotiation?

Conclude your posting with a summary paragraph that synthesizes one or two key issues or points of your initial post.

· Your initial post should be 1–2 pages (500–1,000 words) long.

· Cite any sources you use in APA format.