(1-4) Assume that consumers all around the world only consume Big Macs at MacDonald's. An American tourist found that 50 USD can purchase 30 Big Macs in India, but the same amount of money can only purchase 25 Big Macs in China. The real exchange rate between China and India is A) 1 unit of consumption goods in 5/6 unit of consumption goods in China B) 1 unit of consumption goods in 5/6 unit of consumption goods in India C) 1 unit of consumption goods in India = 2 unit of consumption goods in China D) 1 unit of consumption goods in =

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If the details of the quantity to be produced for a period are as follows, how many units are produced? The opening inventory is 160 units; units sold are estimated to be 200 units; the desired closing stock is 100 units. a. 200 units b. 260 units c. 460 units d. 140 units

Costs and revenues (in thousands) 99 15 30 45 60 75 901052013550165 80195 Quantity per period (in thousands) Tools 1 O A

None

The future value of 1000 Rand for 8% interest rate over 6 years is a certain value. At what interest rate will you get the same future value when you change the period to 3 years for the same 1000 Rand? Hint use goal seek

Given the following information for an insurance company that writes 24-month term policies: Number of Vehicles 50 100 Policy Group A B Effective Date January 1, 2010 Expiration Date December 31, 2011 July 1, 2010 June 30, 2012 All policies within each group have the same effective date. (a) Calculate the earned car-years for calendar year 2011. (b) Calculate the earned car-years for policy year 2010 evaluated as of December 31, 2010 and as of December 31, 2011. (c) Assume Policy Group B cancels on January 1, 2011. Calculate the 2010 policy year written car- years evaluated as of December 31, 2010 and as of December 31, 2011 for Policy Group B. (d) Assume Policy Group B cancels on July 1, 2011. Calculate the 2010 and 2011 calendar year written car-years for Policy Group B.

Price (dollars per gallon) $5.50 3.50 2.50 0 30 40 45 D S2 S₁ Quantity (millions of gallons per month)