An economist is working for a Wall Street firm 12 hours a day and he makes $400 per hour. He sleeps 6 hours per day and he can spend the rest hours in whatever he wants. He receives an increase in his hourly wage of 25% and he decides to cut back the hours he works to 8 per day to dedicate more time to his family. Required:
a. Show in a graph his initial budget constraint (BC) and his combination of hours at home and market goods before the raise in wage.
b. Show in a graph how the BC changes with the change in hourly wage.
c. Show in a graph his new combination of hours at home and market goods after the raise in wage.
d. Explain with words the difference in the substitution effect and in the income effect in this case. Which effect was larger?

Case in point 1.2 suppose you work in the it department of global hotels, a multinational hotel chain. global hotels runs several specialized business support systems, including a guest reservations system that was developed in-house to meet the requirements of a large company with worldwide operations. guests can make one-stop online reservations by visiting global's website, which has links to all major travel industry sites. global hotels just acquired momma's, a regional chain of 20 motels in western canada. momma's uses a vertical reservations package suitable for small- to medium-sized businesses and a generic accounting and finance package. should momma's use global hotels' information systems or continue with its own? in your answer, consider issues such as business profiles, business processes, system interactivity, edi, ecommerce, and the characteristics of both information systems. what additional information would be to you in making a recommendation?

Blue spruce corp. has the following transactions during august of the current year. aug. 1 issues shares of common stock to investors in exchange for $10,170. 4 pays insurance in advance for 3 months, $1,720. 16 receives $710 from clients for services rendered. 27 pays the secretary $740 salary. indicate the basic analysis and the debit-credit analysis.

Russell's is considering purchasing $697,400 of equipment for a four-year project. the equipment falls in the five-year macrs class with annual percentages of .2, .32, .192, .1152, .1152, and .0576 for years 1 to 6, respectively. at the end of the project the equipment can be sold for an estimated $135,000. the required return is 13.2 percent and the tax rate is 23 percent. what is the amount of the aftertax salvage value of the equipment assuming no bonus depreciation is taken