TRUE / FALSE. a business must plan each of its products to make sure it meets their needs of the target market better than similar products offered by competitors.

Mercer Farm Supply Company is preparing budgets for its fertilizer, Basic II, for the first two quarters of 2017. The sales data available show that 40,000 bags will be sold in the first quarter and 50,000 bags in the second quarter. The selling price for each bag is $63.

To prepare the budget for Basic II, Mercer Farm Supply Company needs to consider the direct materials required for each bag. Each bag of Basic II requires 5 pounds of Crup at a cost of $3.80 per pound and 10 pounds of Dert at $1.50 per pound.

To calculate the total cost of direct materials for each bag of Basic II, we can use the following formula:

Total direct materials cost per bag = (5 pounds of Crup x $3.80 per pound) + (10 pounds of Dert x $1.50 per pound)
Total direct materials cost per bag = $19 + $15
Total direct materials cost per bag = $34

Using the sales data provided, we can calculate the total sales revenue for each quarter:

Total sales revenue for quarter 1 = 40,000 bags x $63 per bag
Total sales revenue for quarter 1 = $2,520,000

Total sales revenue for quarter 2 = 50,000 bags x $63 per bag
Total sales revenue for quarter 2 = $3,150,000

To calculate the total direct materials cost for each quarter, we can use the following formula:

Total direct materials cost for each quarter = Total bags sold in the quarter x Total direct materials cost per bag

Total direct materials cost for quarter 1 = 40,000 bags x $34 per bag
Total direct materials cost for quarter 1 = $1,360,000

Total direct materials cost for quarter 2 = 50,000 bags x $34 per bag
Total direct materials cost for quarter 2 = $1,700,000

Based on these calculations, Mercer Farm Supply Company can prepare budgets for Basic II for the first two quarters of 2017.

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True. Monitoring can help managers ensure effective and productive performance by preventing the loss of productivity caused by inappropriate technology use.

By monitoring the use of technology in the workplace, managers can identify any inefficiencies or distractions that are hindering productivity and take corrective action. This can include restricting access to certain websites or apps during work hours or providing additional training on how to use technology more effectively. By doing so, managers can help employees work more efficiently and effectively, ultimately improving overall performance. Additionally, monitoring can also help managers identify any security risks posed by technology use and take steps to mitigate them, further improving productivity and protecting the organization.

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Target and Walmart operate under a cost leadership strategy.

UNIQLO's marketing strategy targeting people between the ages of 16 and 30 is an example of a focused differentiation strategy.

UNIQLO, with its patent-protected clothing line and anticipated demand growth, is in the growth stage of the product life cycle.

Target and Walmart's focus on selling athletic clothing at a lower price than specialty retailers indicate that they operate under a cost leadership strategy. This strategy aims to achieve a competitive advantage by offering products or services at a lower cost than competitors while maintaining acceptable quality.

If UNIQLO decides to direct its marketing efforts toward people between the ages of 16 and 30, it would be utilizing a focused differentiation strategy. This strategy focuses on a specific target market segment and aims to differentiate the company's products or services in that segment through unique features, quality, or other attributes.

Considering UNIQLO's patent-protected clothing line and the anticipated growth in demand, the company is most likely in the growth stage of the product life cycle. The growth stage is characterized by increasing sales, expanding market share, and rising profitability as the product gains wider acceptance in the market.

UNIQLO's large sales volume and the potential for further growth suggest that it is beyond the introduction and growth stages and has entered the maturity stage of the product life cycle.

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The net present value of this project is $2,000,000.

The net present value (NPV) of a project is a financial metric that helps determine the profitability of an investment by calculating the difference between the present value of future cash flows and the initial cost of the project.

In this case, the present value of future cash flows is $12,000,000, and the project costs $10,000,000 today.

To calculate the NPV, you would subtract the initial cost from the present value of future cash flows:

NPV = Present Value of Future Cash Flows - Initial Cost

NPV = $12,000,000 - $10,000,000

NPV = $2,000,000

Therefore, the net present value of this project is $2,000,000. This indicates that the project is expected to generate a positive return on investment, making it potentially worth pursuing. The other values mentioned ($12,000,000 and $22,000,000) do not represent the net present value of the project, as they either account for only the future cash flows or incorrectly add the initial cost to the future cash flows.

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The characteristic that is NOT displayed by a LP allocation problem is the absence of constraints.

A linear programming (LP) allocation problem involves allocating limited resources to maximize the objective function, subject to constraints. The first three characteristics listed—limited quantity of economic resources, production of products or services, and multiple ways of resource utilization—are typical features of LP allocation problems.

However, the characteristic that does not align with LP allocation problems is the absence of constraints. LP problems are defined by constraints that restrict the feasible region of resource allocation and determine the feasible solutions.

These constraints can include limitations on resource availability, production capacities, demand requirements, and other relevant factors. Therefore, option D, stating that the problem is not bound by constraints, is the characteristic that does not apply to LP allocation problems.

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Retained earnings represent the earned capital, while paid-in capital represents the contributed capital. In accounting, the terms "retained earnings" and "paid-in capital" refer to different components of a company's equity or capital structure.

Retained earnings represent the portion of a company's profits that are retained or reinvested back into the business rather than distributed to shareholders as dividends. They accumulate over time and reflect the cumulative earnings generated by the company since its inception, minus any dividends or distributions made to shareholders.

On the other hand, paid-in capital represents the capital contributed by shareholders or investors in exchange for ownership or shares in the company. It typically includes the proceeds from issuing shares of stock, additional capital investments made by shareholders, or any other forms of equity contributions.

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The rate of inflation in 2001 can be calculated by subtracting the Consumer Price Index (CPI) of 2000 from the CPI of 2001 and dividing the result by the CPI of 2000. Using the given values, the rate of inflation in 2001 was approximately 2.85%.

To calculate the rate of inflation, we use the formula:

Rate of Inflation = (CPI in Year 2 - CPI in Year 1) / CPI in Year 1

In this case, the CPI in 2000 is given as 172.2, and the CPI in 2001 is given as 177.1. Plugging these values into the formula:

Rate of Inflation = (177.1 - 172.2) / 172.2 ≈ 2.85%

Therefore, the rate of inflation in 2001 was approximately 2.85%.

Inflation is a measure of the general increase in prices of goods and services over time. The CPI is a commonly used indicator to track inflation. It measures the average change in prices that urban consumers pay for a basket of goods and services. By comparing the CPI values of different years, we can determine the rate of inflation for a particular period.

In this case, the CPI increased from 172.2 in 2000 to 177.1 in 2001. The difference between these two values represents the increase in prices during that period. Dividing this difference by the initial CPI of 2000 gives us the rate of inflation, which is approximately 2.85%.

It's important to note that this calculation provides an average measure of inflation and may not reflect the specific price changes for individual goods or services. Additionally, other factors such as supply and demand dynamics, economic conditions, and government policies can also influence the rate of inflation.

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being vertically integrated.

Vertical integration refers to a business strategy where a company expands its operations by acquiring or controlling different stages of the production process, typically through ownership or business partnerships.

doing so, the company can gain several business , including:

1. Reduced dependence on suppliers: Vertical integration allows a company to bring certain parts of the supply chain in-house. By owning or controlling suppliers or raw material sources, the business can have more control over the quality, cost, and availability of inputs, reducing the reliance on external suppliers. This can provide business and flexibility in the production process.

2. Profit generation from internal operations: Vertical business enables a company to capture profits from the various stages of production. By producing parts and materials internally instead of buying them from external sources, the company can generate additional revenue and increase profitability. This is particularly beneficial if the company can produce these components at a lower cost or with better quality than what is available in the market.

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FirstBank can sustain a maximum deposit outflow of 2.25% of its demand deposits, which equals 0.0225 * 32,000 = 720.

Let's examine FirstBank's balance sheet and address each part of your query.
a. FirstBank's reserve ratio (r) is 10%, and its demand deposits are 32,000. To calculate required reserves, multiply the demand deposits by the reserve ratio: 32,000 * 0.10 = 3,200. FirstBank has actual reserves of 3,920, so their excess reserves are: 3,920 - 3,200 = 720.
b. If FirstBank loans out its excess reserves of 720, the balance sheet will change as follows:
Assets:
- Reserves: 3,200 (since they loaned out the excess reserves)
- Loans: 28,080 + 720 = 28,800
Liabilities:
- Demand deposits: 32,000 (unchanged)
c. To determine the maximum deposit outflow FirstBank can sustain without affecting other parts of the balance sheet, we need to calculate the excess reserves as a percentage of demand deposits. Excess reserves are 720, and demand deposits are 32,000, so the percentage is (720/32,000) * 100 = 2.25%.

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The correct answer is d. fallacy of composition.

Fallacy of composition. This fallacy assumes that what is true for the whole must also be true for the parts, which is not necessarily the case. While free trade can be beneficial for the economy as a whole by increasing competition and driving down prices, it does not guarantee that every individual will benefit. Some individuals or industries may suffer job losses or increased competition from cheaper imports. It's important to consider the potential winners and losers of free trade policies and weigh the overall benefits against the potential costs. In summary, while free trade can be beneficial for the economy, it does not guarantee benefits for every individual.

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Mahmet's employer will withhold a total of $2,144.10 in Medicare taxes for the year.

The Medicare tax rate for employees is 1.45% of all wages earned, and there is no cap on the amount of wages subject to Medicare tax. In Mahmet's case, his wages of $145,800 will all be subject to Medicare tax.

To calculate the Medicare tax withholding, we can simply multiply Mahmet's wages by the Medicare tax rate:

$145,800 x 0.0145 = $2,112.10

However, Mahmet also claims two dependents under the age of 17, which may affect his tax withholding. To account for this, his employer may adjust his withholding using the W-4 form and the IRS tax withholding tables.

In any case, Mahmet can expect his employer to withhold around $2,144.10 in Medicare taxes for the year.

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Current professional auditing standards mandate the use of analytical procedures during the testing phase of the audit. Analytical procedures are used to evaluate financial information through analysis of plausible relationships between financial and non-financial data then the given statement is true.

The purpose of analytical procedures is to enhance the auditor's understanding of the client's business and to identify areas of potential risk.

Analytical procedures are considered an essential part of the audit process, and their use is required by auditing standards. Auditors are required to perform analytical procedures during the planning phase of the audit, as well as during the testing phase. During the testing phase, analytical procedures are used to test the assertions made by the client about their financial statements. The analytical procedures used during testing may vary depending on the complexity of the client's business, the materiality of the amounts being audited, and the nature of the risks identified during the planning phase.

In conclusion, analytical procedures are mandatory during the testing phase of an audit. They are used to enhance the auditor's understanding of the client's business, identify areas of potential risk, and test the assertions made by the client about their financial statements. The use of analytical procedures is required by current professional auditing standards and is considered an essential part of the audit process.

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When a precision machine manufacturer enters into a long-term contract to purchase diamonds from a mine in Africa, this is an example of strategic sourcing.

Strategic sourcing is a procurement strategy where organizations establish long-term contracts and partnerships with suppliers to ensure a stable and reliable supply of essential materials or components.

By entering into a long-term contract to purchase diamonds from a specific mine in Africa, the precision machine manufacturer is strategically sourcing its raw material needs. This approach allows the manufacturer to secure a consistent supply of diamonds over an extended period, ensuring production continuity and potentially obtaining favorable pricing and terms. It also enables the manufacturer to build a stronger relationship with the mine, fostering collaboration and potential opportunities for mutual growth and development.

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Answer:

TRUE. Only about 50% of corporate venturing efforts reach profitability within 6 yrs of their launch

To record the budget approved by the city for the year, the following journal entry should be made:
Debit: Estimated Revenues - $50,500,000
Debit: Estimated Other Financing Sources - $10,750,000
Credit: Appropriations - $30,500,000
Credit: Estimated Other Financing Uses - $25,500,000
Credit: Fund Balance - $5,250,000

This entry records the estimated revenues and other financing sources expected to be received, as well as the appropriations and other financing uses that will be spent during the year. The net change in fund balance of $5,250,000 is also reflected in the entry. This entry establishes the budget for the city for the year.
Hi, I'd be happy to help you with your question. Based on the provided information, the journal entry to record the budget would include the following accounts and amounts:
Debit: Estimated Revenues Control: $50,500,000
Estimated Other Financing Sources: $10,750,000
Credit: Appropriations: $30,500,000
Estimated Other Financing Uses: $25,500,000
Net Change in Fund Balance: $5,250,000

The journal entry would look like this:
Estimated Revenues Control.......... 50,500,000
Estimated Other Financing Sources.... 10,750,000
   Appropriations...…. 30,500,000
   Estimated Other Financing Uses...…. 25,500,000
   Net Change in Fund Balance...….. 5,250,000
Please let me know if you need any further clarification or assistance.

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A. To calculate the net present value (NPV) of the crane investment, we need to discount the expected cash flows at the required rate of return of 9 percent. The formula for NPV is as follows:

NPV = CF1 / (1 + r)^1 + CF2 / (1 + r)^2 + CF3 / (1 + r)^3 - Initial cost

Where CF1, CF2, and CF3 are the cash flows expected at the end of year 1, year 2, and year 3, respectively, and r is the required rate of return.

Using the provided information, we can calculate the NPV as follows:

NPV = $5,000 / (1 + 0.09)^1 + $8,000 / (1 + 0.09)^2 + $10,000 / (1 + 0.09)^3 - $17,291.42

B. The internal rate of return (IRR) is the discount rate that makes the NPV of an investment equal to zero. We can calculate the IRR by finding the discount rate at which the sum of the present values of the cash flows equals the initial cost. This can be done using trial and error or financial software.

C. To determine whether Mr. Bailey should purchase the crane, we evaluate the NPV and compare it to zero. If the NPV is positive, it indicates that the investment is expected to generate a return higher than the required rate of return and is therefore favorable. If the NPV is negative, it indicates that the investment is expected to generate a return lower than the required rate of return and may not be advisable.

Without the actual cash flows for the subsequent years, it is not possible to calculate the precise NPV and IRR or make a definitive recommendation. However, based on the information provided, Mr. Bailey should calculate the NPV and IRR using the formulas and compare the results to determine if the investment in the crane is financially viable.

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The person in this role is responsible for crafting the meaning of the brand through words is a brand strategist or a brand copywriter.

A brand strategist or a brand copywriter is typically responsible for creating and communicating the brand's message and identity through written content. This role involves developing a deep understanding of the brand's values, positioning, and target audience to effectively communicate its message to consumers.

A brand strategist or copywriter crafts compelling and persuasive copy for various marketing materials such as advertisements, website content, social media posts, brand messaging, and other communication channels. They ensure that the brand's voice, tone, and messaging align with its overall strategy and resonate with the target audience.

These professionals use their expertise in storytelling, language, and persuasive writing techniques to convey the brand's unique value proposition, evoke emotions, and engage consumers. They work closely with other marketing and creative teams to ensure consistency in brand messaging across different platforms and touchpoints.

The role of a brand strategist or copywriter is crucial in shaping the perception and meaning of the brand through words, allowing it to effectively communicate its values, differentiate itself from competitors, and establish a strong connection with its audience.

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A: "Monopolies are generally more able to earn long-run profits compared to" B: "perfectly competitive firms due to" A: "barriers to entry.

In a monopoly market structure, there is only one seller or producer of a particular product or service, giving them significant control over the market. This control allows monopolies to set higher prices and restrict competition, resulting in the potential for long-run profits. On the other hand, in a perfectly competitive market, there are many sellers and buyers, and entry into the market is relatively easy. This leads to intense competition, driving prices down and reducing the ability to earn long-run profits.

Options A , B and A are correct answers.

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The value of checks that have been written but not deducted from the account is the outstanding or uncashed check amount.

The term used to describe checks that have been written by an account holder but have not yet been deducted from the account balance is "outstanding checks" or "uncashed checks." These are checks that have been given to customers or recipients but have not yet been presented to the bank for payment or deposited into their accounts. The value of outstanding checks represents the amount of money that has been allocated or set aside by the account holder to cover these checks, but the actual deduction from the account balance has not occurred yet. It is important for account holders to keep track of outstanding checks to ensure they have sufficient funds in their account to cover these payments when they are presented for processing. Once the checks are cashed or deposited, the bank will deduct the corresponding amounts from the account balance, thereby reducing the outstanding check value.

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When a country's exports increase and imports decrease, it leads to a positive impact on the economy. This is because the country is generating more revenue from exporting goods and services, which leads to an increase in the country's gross domestic product (GDP) and a boost in economic growth.

When a country's exports increase, it means that the demand for its products has increased in other countries, which leads to an increase in the country's revenue. This, in turn, leads to an increase in the country's GDP and can result in the creation of jobs and an increase in the standard of living for its citizens. Additionally, when imports decrease, it means that the country is not relying as much on foreign goods and services, which can help to balance the trade deficit. This leads to a more stable economy and can reduce the risk of inflation.
Overall, the increase in exports and decrease in imports leads to a positive impact on the country's economy as it leads to an increase in revenue, job creation, and economic growth.

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The time value of money refers to the idea that money available at the present time is worth more than the same amount in the future because it can be invested or used to earn interest. The correct answer is Option c. default risk premium.

The default risk premium reflects the additional return an investor requires to compensate for the risk that a borrower may default on a loan. The longer the time period, the greater the risk of default, and therefore the higher the default risk premium. This is because the longer the time period, the more opportunities the borrower has to default on the loan.

The other options are not directly related to the time value of money: Real risk-free rate: This refers to the return on an investment that is guaranteed not to lose value due to inflation or other factors. It does not reflect the time value of money. Inflation premium: This refers to the return an investor requires to compensate for the effects of inflation on their investment.  While inflation can affect the value of money over time, it does not directly reflect the time value of money itself.

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Macy's internet advertisement on Thanksgiving Day is classified as seasonal advertising. This kind of advertisement has a positive effect on sales.

Seasonal advertising refers to the promotion of products and services that are related to specific holidays, events, or seasons, such as Thanksgiving Day. The main objective of this type of advertising is to capitalize on the increased consumer demand during these times, which can lead to a boost in sales. Macy's, as a major retailer, utilizes seasonal advertising to attract more customers and promote their special offers, deals, and products relevant to the Thanksgiving celebration.

The positive effect on sales can be attributed to several factors. First, consumers tend to spend more during holidays, making it a prime time for businesses to promote their products and services. Seasonal advertising captures the attention of potential customers who are already in a purchasing mindset.

Additionally, these advertisements often create a sense of urgency by highlighting limited-time offers or discounts, which can prompt consumers to make a purchase sooner rather than later. Finally, the emotional appeal of holiday-themed advertisements can also influence customers' buying decisions, as they may associate positive feelings with the brand or product being advertised.

In conclusion, Macy's internet advertisement on Thanksgiving Day is an example of seasonal advertising, which can positively impact sales by capitalizing on increased consumer demand and creating a sense of urgency for limited-time offers.

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Rent-seeking activities by firms often waste economic resources, do not increase economic rent, and hinder economic efficiency through market distortions.

Rent-seeking refers to the actions of firms or individuals aimed at obtaining economic rents, which are income or profits earned above what is necessary to incentivize production. However, these activities do not lead to an increase in the total amount of economic rent available. Economic rent, in this context, refers to the income generated from a resource that is in limited supply and has value due to its scarcity or exclusivity.

Rent-seeking activities typically involve lobbying for regulations, subsidies, or other government interventions that grant special privileges or protection to a specific firm or industry.

These actions divert resources away from productive activities and lead to a misallocation of resources. The time, money, and effort spent on rent-seeking could have been used more efficiently in productive sectors of the economy, such as innovation, investment, or improving production processes.

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The elasticity function for the given demand function d(p) = 125 - 2p^2 is E(p) = -4p / (125 - 2p^2).

To find the elasticity function, we'll use the formula for price elasticity of demand, which is E(p) = (p / d(p)) * (d'(p)), where d'(p) is the derivative of the demand function with respect to price (p).

First, let's find the derivative of the demand function, d'(p) = d(125 - 2p^2)/dp. Using the power rule, we find that d'(p) = -4p.

Next, we'll plug d'(p) and d(p) into the formula for price elasticity of demand:

E(p) = (p / (125 - 2p^2)) * (-4p).

Simplifying the expression, we get E(p) = -4p / (125 - 2p^2).

This is the elasticity function for the given demand function.

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False, The acquisition of a building by issuing bonds is considered a financing activity, not an investing activity. However, since bonds are issued, it doesn't affect the cash position directly.

The acquisition of a building by issuing bonds would be considered a financing activity as it involves obtaining funds from outside sources. However, it would not be considered an investing activity as investing activities involve the purchase or sale of long-term assets such as property, plant, and equipment. Additionally, the issuance of bonds would affect cash as it results in an inflow of cash from investors who purchase the bonds.

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TRUE. The given equation CR(i)=I(A/P,i,N)-S(A/F,i,N) is used to solve for the capital recovery equivalence.

Here, CR(i) represents the annual equivalent cash flow, I is the initial investment, S is the salvage value, A/P represents the present worth factor, A/F represents the capital recovery factor, i is the interest rate, and N is the number of years.
To solve for the capital recovery equivalence, we need to determine the annual equivalent cash flow that would result in an equivalent return on investment. This can be done by subtracting the annual capital cost from the annual revenue generated by the investment. The given equation provides a way to calculate the annual capital cost using the present worth and capital recovery factors.
Therefore, the answer to the question is TRUE. The given equation will solve for the capital recovery equivalence. However, it is important to note that this equation assumes a constant annual cash flow and may not be applicable in all investment scenarios.

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As an event planner, focusing on staffing needs is NOT an important aspect of on the job time management.

Time management is crucial for event planners to ensure efficient and successful execution of events. While keeping accurate records, preparing agendas, and delegating tasks are important aspects of time management, focusing on staffing needs is not directly related to managing one's time effectively.

Focusing on staffing needs is more related to human resource management and ensuring the appropriate number of staff members with the necessary skills are available for an event. While staffing is an important consideration for event planning, it is not directly tied to managing one's own time on the job.

On the other hand, keeping accurate records helps track important information and deadlines, preparing agendas helps prioritize tasks and allocate time accordingly, and delegating tasks helps distribute the workload effectively. These aspects of time management enable event planners to stay organized, meet deadlines, and optimize their productivity.

Therefore, while all the options listed may have relevance in event planning, focusing on staffing needs is not specifically related to on-the-job time management.

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An employer has the right to request certain tests from a job applicant as part of the hiring process. These tests can include drug testing, medical examinations, and criminal background checks.

However, there are limitations to what tests can be requested and when they can be requested. The option that does not align with legal hiring practices is option A, which is requiring a medical examination during the selection process before offering the job. The Americans with Disabilities Act (ADA) prohibits employers from conducting medical examinations until after an offer of employment has been extended. The only exception to this rule is if the examination is job-related and consistent with business necessity. Job offers can be contingent upon passing drug tests and medical examinations, as mentioned in options B and D. However, testing for illegal drugs during the selection process, as stated in option C, can be a controversial practice.

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To compute the steady state capital per effective worker, we need to find the value of K/E at which investment equals depreciation. In other words, we need to solve for the value of K/E such that (1-S)Y = δK, where δ = (1-8) is the depreciation rate.

We can start by using the production function to express Y in terms of K and E:

Y = AK(EL)-α

We can substitute this expression for Y into the equation for investment:

I = S(Y-C) = S(Y-(1-S)Y) = SY

We can use this expression for investment to express the change in capital per effective worker:

ΔK/E = I/EL - δK/E = SY/EL - δK/E

Substituting the values given in the problem, we have:

ΔK/E = 0.15AK(EL)-α/EL - 0.03K/E

We can simplify this expression by dividing both sides by K/E:

Δ(K/E)/E = 0.15A(K/E)1-α - 0.03(K/E)

This is a first-order difference equation in K/E. To find the steady state value, we set Δ(K/E)/E = 0:

0.15A(K/E)1-α - 0.03(K/E) = 0

Solving for K/E, we get:

K/E = (0.15A/0.03)1/(1-α) = 17.3205

Rounding to three decimal places, we have:

K/E = 17.321

Therefore, the steady state capital per effective worker is approximately 17.321.

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