Colanders Economics, 7th Edition
Answers to End-of-Chapter Questions
by David Colander
A Note about the Answers
The following answers are meant as guides to answering the end-of-chapter
questions, not as definitive answers. The same questions often have m
Gross Domestic Product is the market value of all final goods and services produced in a nation
in one year. It is considered to be the most important measurement of production and output.
GDP counts only final goods and services - not intermediate goods
The Economic Problem: Scarcity and Choice
Scarcity, Choice, and Opportunity Cost
Human wants are unlimited, but resources are not.
Three basic questions must be answered in order to understand an economic system:
What gets produced?
How is it produced?
What effects might each of the following have upon aggregate demand or aggregate supply? In each case sketch a
diagram to show the expected effects upon the equilibrium price level and level of real national output. Assume that
all other things remain con
Take Home Quiz
Assignment: From the last 2 HW assignments, Answer #1, 6, 13, 14, 18 on p. 653. To
receive full credit for any question, every part of the question must be correctly and