Suppose the following list of events describes all of the economic activity resulting from an increase in government spending. Suppose that at each step after the initial one, the marginal propensity to consume is 0.77 and the tax rate is 13%. Step 0. The government spends $5500 on meat to host a very large dinner for foreign diplomats.
Step A. The butcher takes the income earned by selling the meat saves some and spends the rest on a wedding cake for his daughter.
Step B. The baker who produced the wedding cake saves some of her earnings and uses the rest to purchase beautiful candlesticks as gifts for all of her friends.
Step C. The local candlestick maker saves some of his revenue for retirement and spends the rest on building materials to improve his house.

Required:
a. How much does the candlestick maker earn for selling the candlesticks?
b. How much does the candlestick maker spend on building materials?

Match the vocabulary word to the correct definition. 1. compensation 2. corporate social responsibility 3. discrimination 4. benefits 5. biodegradable a. a business’s obligation to the community and the environment b. the ability to naturally break down or decompose c. treating someone differently because of his or her race, religion, gender, sexual orientation, or disabilities d. indirect and non-cash compensation paid to employees e. the salary and other benefits for doing a job

Shelby company produces three products: product x, product y, and product z. data concerning the three products follow (per unit): product x product y product z selling price $ 85 $ 65 $ 75 variable expenses: direct materials 25.50 19.50 5.25 labor and overhead 25.50 29.25 47.25 total variable expenses 51.00 48.75 52.50 contribution margin $ 34.00 $ 16.25 $ 22.50 contribution margin ratio 40 % 25 % 30 % demand for the company’s products is very strong, with far more orders each month than the company can produce with the available raw materials. the same material is used in each product. the material costs $8 per pound, with a maximum of 4,400 pounds available each month. required: a. compute contribution margin per pound of materials used. (round your intermediate calculations and final answers to 2 decimal places.) contribution margin per pound product x $ product y $ product z $ b. which orders would you advise the company to accept first, those for product x, for product y, or for product z? which orders second? third? product x product y product z

What two things do you consider when evaluating the time value of money