MEL 1

​Real-Time Data Analysis​ Exercise* Consider the following data for the United​ States: Year Real GDP ​($ billion) 2014 16 comma 899.8 2015 17 comma 386.7 ​*Real-time data provided by Federal Reserve Economic Data​ (FRED), Federal Reserve Bank of Saint Louis. The percentage change in real GDP from 2014 to 2015 equals _______​%. ​(Enter your response rounded to two decimal places and include a minus sign if necessary.​) This percentage change in real GDP is also known as A. the economic growth rate. Your answer is correct.B. revenue. C. marginal analysis. D. profit.

2.88 A. the economic growth

Every society faces​ trade-offs because we live in a world of scarcity. Suppose a​ student-athlete has the opportunity to earn ​$600 comma 000 next year playing for a minor league baseball​ team, ​$900 comma 000 next year playing for a European professional football​ team, or​ $0 returning to college for another year. The opportunity cost of the​ student-athlete returning to college next year is ​$ ____________. ​(Enter your response as an​ integer.)

900,000

Teachers often wish that students came to class prepared having read the upcoming material. A teacher could design the grading system to motivate students to come to class prepared by _______________ the grade weight assigned to being prepared. A. increasing B. decreasing

A. increasing

Canada has a market economy. As​ such, Canada​'s economy​ (relative to centrally planned​ economies) tends to result in A. productive efficiency and allocative efficiency but not necessarily equity. Your answer is correct.B. allocative efficiency but not necessarily productive efficiency or equity. C. equity but not necessarily productive efficiency or allocative efficiency. D. productive efficiency but not necessarily allocative efficiency or equity. E. allocative efficiency and equity but not necessarily productive efficiency.

A. productive efficiency and allocative efficiency but not necessarily equity

In the​ circular-flow diagram showing how a market system​ works, A. income flows to households and the government through product markets. B. income flows to households through factor markets. C. firms and households are both suppliers in product markets. D. households purchase output produced by firms in product and factor markets. E. households are demanders and firms are suppliers in factor markets.

B

Which of the following shows a negative nonlinear ​relationship? ​ (assume values of x greater than 0​) A. y equals negative 30 plus 5.1 x B. y equals StartFraction 29 Over x EndFraction Your answer is correct.C. y equals negative 30 plus StartRoot x EndRoot D. y equals 29 minus 7.9 x

B

​Trade-offs force society to answer questions such as what goods and services will be​ produced, how will the goods and services be​ produced, and who will receive the goods and services produced. Which of the following countries has an economy where the government makes these​ decisions? A. The United States B. Cuba Your answer is correct.C. Japan D. Canada

B. Cuba

A large corporation that runs nursing homes estimates that changes to Medicare will result in lower payments by Medicare to nursing homes for​ short-term stays by patients that require therapy or care upon leaving hospitals. Assume the corporation is considering expanding the number of​ "beds" it offers at its nursing homes. Given the changes to​ Medicare, if the marginal benefit of offering an additional bed is ​$5 comma 000 and the marginal cost is ​$8 comma 000 per​ bed, then the corporation ____________ offer additional beds. A. should B. Should not

B. Should not

The grading system used by a teacher can affect the incentives of students to learn the course material by A. uniformly weighting all course components. B. altering the payoffs to achieving success on the various components of the course. C. doubling points assigned to each component of the course. D. none of the above since student performance is based on innate intelligence.

B. altering the payoffs to achieving success on the various components of the course

Macroeconomics is most likely to include the study of A. household choices. B. inflation. Your answer is correct.C. religious decisions. D. firm interaction. E. consumer choices.

B. inflation

What are the two main categories of participants in​ markets? A. Households and entrepreneurs. B. Households and the government. C. Firms and households. D. Firms and banks. E. Domestic participants and international participants.

C

Regarding the question of whether health insurance provides people with an incentive to become​ obese, the finding of Bhattacharya and Bundorf seems A. irrelevant since a multitude of other factors besides the presence of health insurance can cause obesity. B. irrelevant since correlation does not establish causation. C. ​"off the​ wall," because​ it's common knowledge that obesity is a​ disease, like cancer. D. relevant since the link between insurance and obesity was established while holding many other variables constant.

D. relevant since the link between insurance and obesity was established while holding many other variables constant

Jay Bhattacharya and M. Kate Bundorf of Stanford University have found evidence that people who are obese and work for firms that have​ employer-provided health insurance receive lower wages than people working at those firms who are not obese. At firms that do not provide health​ insurance, obese workers do not receive lower wages than workers who are not obese. Firms that provide workers with health insurance may pay a lower wage to obese workers than to workers who are not obese because the former tend to be less healthy and consequently. A.less productive at work. B.more costly to insure and therefore employ due to their higher claim submission rate. C.experience higher rates of absenteeism and early retirement. D.all of the above. E. A and B only.

D. All the above

What is the​ circular-flow diagram and what does it​ illustrate? A. The​ circular-flow diagram shows the maximum attainable combinations of two products that may be produced with available resources and current technology. B. The​ circular-flow diagram shows the​ government's role in markets through taxes and transfer payments. C. The​ circular-flow diagram shows how households are linked through product and factor markets. D. The​ circular-flow diagram shows how households and firms are linked through factor markets. E. The​ circular-flow diagram shows how households and firms are linked through product and factor markets.

E

In​ economics, the term capital refers to A. the difference between a​ firm's assets and its liabilities. B. goods used to produce other goods. C. funds comma including cash comma used by businesses to hire resources. D. the process of raising funds from venture capitalists.

b

Which participants are of greatest importance in determining what goods and services are​ produced? A. Entrepreneurs. B. Firms. C. Households. .D. The government. E. The financial sector.

c

Examining the most efficient way to reduce air pollution is most likely an issue in _____________________

microeconomics

The diagram to the right illustrates a supply curve. As with all supply ​curves, this​ curve's slope is .

positive

Suppose an analyst estimates the cost to businesses from minimum wage laws. This is an example of ________________

postivie analysis

Marginal utility is the change in total utility a person receives from consuming one additional unit of a good or service.

true