Application of economic principles in decision-making

The Microeconomic Paper tests your ability to apply economic principles to a business decision. Complete the paper on the selected situation as specified below. The completed paper is a professional report (150 points). See the grading rubric at the end of this document.  For sources of data, you can choose from the list presented at the end of this document.

Grading Rubric

Each of the scenarios has a list of macroeconomic areas you are to address, with sources, in your answer. Research and show how these apply to your scenario: GDP growth rate (20 points), the business cycle, unemployment, and inflation (40 points), fiscal policy and level of unemployment (40 points), monetary policy and interest rates (40 points), and demographics (10 points).

Situation A

Jenny, your niece, is a smart high-school student who wants to make smart choices for her future. Hearing of your course in Business Economics, she has emailed you asking for advice on whether to become a medical doctor and on the best location to practice it. She recognizes the high costs of tuition and the years of study involved in becoming a doctor. She wants to evaluate if that career choice is an optimum decision for her. So she has asked you for advice.

Having read the introduction to Chapter 1 on page 3 of the textbook, you recognize the significance of such a career decision for Jenny. You decide to examine the significance of the influence that macroeconomic conditions can have on the success of a profession. So you research the economy in terms of GDP growth rate, interest rates, level of unemployment, the business cycle, fiscal policy, monetary policy, international trade, and demographics. You want to provide Jenny with the most informed advice possible. In addition to macroeconomic issues, you also evaluate the career choice from longer-term perspectives.

Data Sources

1. DeVry Online Library:
2. Data bases for related articles
3. Data bases for industry reports; IBISWorld in particular.
4. ProQuest Statistical Abstracts of U.S.:  http://library.devry.edu/pdfs/STATISTICAL_ABSTRACTS__US.pdf

• Industry Associations
• Association of American Medical Colleges: https://www.aamc.org/
• American Medical Association (AMA): http://www.ama-assn.org/ama
• Council on Graduate Medical Education (COGME): http://www.hrsa.gov/advisorycommittees/bhwadvisory/cogme/
• National Center for Health Statistics (NCHS): http://www.cdc.gov/nchs/
• Solar Energy Industries Association: http://www.seia.org/
• The Solar Foundation: http://www.thesolarfoundation.org/
• The National Restaurant Association: http://www.restaurant.org/
• NACS - The Association for Convenience & Fuel Retailing: http://www.nacsonline.com/Pages/default.aspx

• Private Research Groups
• The Rand Corporation: http://www.rand.org/
• University of Michigan: http://css.snre.umich.edu/; http://www.sca.isr.umich.edu/
• The Conference Board: https://www.conference-board.org/data/bcicountry.cfm?cid=1
• OECD: http://www.oecd.org/eco/economicoutlook.htm
• IMF: http://www.imf.org/external/pubs/ft/weo/2015/01/

• U.S. Government Websites:
• Statistical Abstracts of U.S.: https://catalog.data.gov/dataset/statistical-abstract-of-the-united-states
• International Trade Administration: http://www.trade.gov/
• National Renewable Energy Laboratory: http://www.nrel.gov/
• National Center for Health Statistics: http://www.cdc.gov/nchs/
• U.S. Department of Energy: http://www.energy.gov/
• U.S. Energy Information Administration: http://www.eia.gov/
• Bureau of Labor Statistics: http://www.bls.gov/
• Bureau of Economic Analysis: http://www.bea.gov/
• Lawrence Berkeley National Laboratory (Berkeley Lab): https://www.lbl.gov/
• U.S. Census Bureau: http://www.census.gov/; http://www.census.gov/econ/bes/; http://www.census.gov/economic-indicators/
• U.S. Department of Commerce: http://www.commerce.gov/; http://export.gov/; http://business.usa.gov/; http://www.esa.doc.gov/content/indicators
• Statistical Abstracts of U.S.: https://catalog.data.gov/dataset/statistical-abstract-of-the-united-states; https://catalog.data.gov/dataset?q=business+expense&sort=none&ext_location=&ext_bbox=&ext_prev_extent=-142.03125%2C8.754794702435617%2C-59.0625%2C61.77312286453146