Question: 1) Why should managers check the amount spent for overtime? 2) The new controller for TAG Company, a manufacturing firm, has suggested to management that

1) Why should managers check the amount spent for overtime?

2) The new controller for TAG Company, a manufacturing firm, has suggested to management that the business change from paying the factory employees in cash to paying them by check. What reasons would you offer to support this suggestion?

3) Why should management make sure that a firm has an adequate set of payroll records?

4) How can detailed payroll records help managers control expenses?

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=+ 2. In the steady state of the Solow model, at what rate does output per person grow?

=+ a. Express output per worker (y = Y/L) as a function of capital per worker (k = K/L) and the natural rate of unemployment (u).

=+ b. Write an equation that describes the steady state of this economy. Illustrate the steady state graphically, as we did in this chapter for the standard Solow model.