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Gdp & Economics as a Social Science

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Submitted By tsummers
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Discussion Questions Individual
Why is economics considered a social science? What role does economics play in your personal and professional lives?
According to Colander (2010), economics is the study of how people coordinate their wants and desires, given the decision-making mechanisms, social customs, and political realities of the society. There are three central problems in economics; what and how much to produce, how to produce, and for whom to produce. As a society of human beings, people make decisions based on cost and benefits (Colander, 2010). Because it analyzes how and what people do in certain circumstance typically involving money and goods, economics is considered a social science. In my personal and professional life, I am constantly making economic decisions when it comes to choosing between social parties with friends or work. Some of my friends are still in school and do not work. I work full time and go to school, so I cannot always afford to stay out as late as others. My choice is not so much about spending money, but based more on my time management and the need of getting sleep for work the next morning versus staying out late and partying with friends.

What is the difference between real and nominal GDP? Does GDP accurately reflect the nation’s welfare? Why or why not? How can a country’s GDP be manipulated? In your opinion, is the U.S. GDP being manipulated? Explain your answer. GDP stands for gross domestic product, and “is a measure of the total market value of aggregate production of goods and services produced in an economy in a year” (Colander, 2010). Nominal GDP calculates income at existing prices while the real GDP adjusts the nominal GDP for inflation. According to Colander (2010), GDP is used to compare one country’s production to another and one year’s production with another year. I do not believe that GDP accurately

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