Nthe economy of mungo, discussed in your workbook, there is a third person called ike. ike has a red income of 56 and a blue income of 10. (recall that blue prices are 1 bcu [blue currency unit] per unit of ambrosia and 1 bcu per unit of bubblegum. red prices are 2 rcus [red currency units] per unit of ambrosia and 6 rcus per unit of bubblegum. you have to pay twice for what you buy, once in red currency, once in blue currency.) if ike spends all of his blue income, but not all of his red income, then it must be that: (a) he consumes at least 9 units of bubblegum.(b) he consumes at least 1 units of ambrosia.(c) he consumes exactly twice as much bubblegum as ambrosia.(d) he consumes at least 17 units of bubblegum.(e) he consumes equal amounts of ambrosia and bubblegum. the correct answer is (b)he consumes at least 1 units of ambrosia. explain how you solve this.

Ajustification for job training programs is that they improve worker productivity. suppose that you are asked to evaluate whether more job training makes workers more productive. however, rather than having data on individual workers, you have access to data on manufacturing firms in ohio. in particu- lar, for each firm, you have information on hours of job training per worker (training) and number of nondefective items produced per worker hour (output). (i) carefully state the ceteris paribus thought experiment underlying this policy question. (ii) does it seem likely that a firm’s decision to train its workers will be independent of worker characteristics? what are some of those measurable and unmeasurable worker characteristics? (iii) name a factor other than worker characteristics that can affect worker productivity. (iv) if you find a positive correlation between output and training, would you have convincingly established that job training makes workers more productive? explain.

You are the manager in charge of global operations at bankglobal – a large commercial bank that operates in a number of countries around the world. you must decide whether or not to launch a new advertising campaign in the u.s. market. your accounting department has provided the accompanying statement, which summarizes the financial impact of the advertising campaign on u.s. operations. in addition, you recently received a call from a colleague in charge of foreign operations, and she indicated that her unit would lose $8 million if the u.s. advertising campaign were launched. your goal is to maximize bankglobal’s value. should you launch the new campaign? explain. pre-advertising campaign post-advertising campaign total revenues $18,610,900 $31,980,200 variable cost tv airtime 5,750,350 8,610,400 ad development labor 1,960,580 3,102,450 total variable costs 7,710,930 11,712,850 direct fixed cost depreciation – computer equipment 1,500,000 1,500,000 total direct fixed cost 1,500,000 1,500,000 indirect fixed cost managerial salaries 8,458,100 8,458,100 office supplies 2,003,500 2,003,500 total indirect fixed cost $10,461,600 $10,461,600

If the findings and the results are not presented properly, the research completed was a waste of time and money. true false