Chapter Answer Keys

Chapter 1 – The Role and Method of Economics

Section 1.1 and 1.2

Section 1.3 and 1.4

Section 1.5 and 1.6

Section 1.7 and 1.8

Chapter 2 – Scarcity, Trade-offs, and Production Possibilities

Section 2.1 and 2.2

Section 2.3

Section 2.4

Chapter 3 – Supply and Demand

Section 3.1 – Markets

Section 3.2 – Demand

Section 3.3 – Shifts in the Demand Curve

Section 3.4- Supply

  • Please ensure that you label all graphs. Supply curves can be denoted by the letter “S”

Section 3.5 – Shifts in the Supply Curve

Chapter 4 – Bringing Supply and Demand Together

Section 4.1 – Market Equilibrium and Price

Section 4.2 – Changes in Equilibrium Price and Quantity

  • key-section-4.2-questions-1-6.pdf
  • Questions 7 and 8

Section 4.3 – Price Controls

Chapter 5 – Introduction to the Macroeconomy

Section 5.1 – Macroeconomic Goals

Section 5.2 – Employment and Unemployment

Section 5.3 – Different Types of Unemployment

Section 5.4 – Inflation

Section 5.5 – Economic Fluctuations

Chapter 6 – Measuring Economic Performance

Section 6.1 – National Income Accounting: Measuring Economic Performance

Section 6.2 – The expenditure Approach to Measuring GDP

Section 6.3 –

Section 6.4 – Issues with calculating an accurate GDP

Section 6.5 – Problems with GDP as a measure of economic welfare

Chapter 7 – Economic Growth in the Global Economy

Section 7.1 – Economic Growth

Section 7.2 – Determinants of Economic Growth

Section 7.3 – Public Policy and Economic Growth

Section 7.4 – Population and Economic Growth

CHAPTER 11: MONEY AND THE BANKING SYSTEM

Section 11.1 What is money?

Section 11.2 Measuring Money

Section 11.3 How Banks Create Money

Section 11.4 The Money Multiplier