You can either take a bus or drive your car to work. A bus pass costs $5 per week, whereas driving your carto work costs $60 weekly (parking, tolls, gas, etc.). You spend half an hour less on a one-way trip in your carthan on a bus. How would you prefer to travel to work if your wage rate is $10 per hour? Will you change3 your preferred mode of transportation if your wage rate rises to $20 per hour? Assume you work five days aweek and time spent riding on a bus or driving a car does not directly enter your utility.

When a government sees that local industry is threatened by imports, it can threaten to erect import barriers to stop or reduce these imports. this is an example of a driver of international business activity?

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.

Oerstman, inc. uses a standard costing system and develops its overhead rates from the current annual budget. the budget is based on an expected annual output of 120,000 units requiring 480,000 direct labor hours.(practical capacity is 500,000 hours)annual budgeted overhead costs total $772,800, of which $556,800 is fixed overhead. a total of 119,300 units, using 478,000 direct labor hours, were produced during the year. actual variable overhead costs for the year were $260,400 and actual fixed overhead costs were $555,450.required: 1. compute the fixed overhead spending variance and indicate if favorable or unfavorable.2. compute the fixed overhead volume variance and indicate if favorable or unfavorable.