NETA ASSESSMENT
Test Bank
to accompany
Test Bank prepared
by Constantin
Colonescu
MacEwan
University
,NETA Assessment: Test Bank to accompany Principles of Macroeconomics,
Sixth Canadian Edition
By N. Gregory Mankiw / Ronald D. Kneebone / Kenneth J. McKenzie
Test Bank prepared by Constantin Colonescu, MacEwan University
NETA copy editor: Frances Robinson
Available on Instructor’s Resource CD ISBN . 0-17-655440-8
COPYRIGHT ©2014 by Nelson Education Ltd. Nelson is a registered trademark used
herein under licence. All rights reserved.
For more information contact Nelson, 1120 Birchmount Road, Toronto, Ontario M1K
5G4. Or you can visit our Internet site at www.nelson.com.
ALL RIGHTS RESERVED. No part of this work covered by the copyright hereon
may be reproduced or used in any form or by any means—graphic, electronic, or
mechanical, including photocopying, recording, taping, web distribution or
information storage and retrieval systems—without the written permission of the
publisher
ii
, TABLE OF CONTENTS
Part 1 Introduction
Chapter 1 Ten Principles of Economics 1-1
Chapter 2 Thinking Like an Economist 2-1
Chapter 3 Interdependence and the Gains from Trade 3-1
Part 2 Supply And Demand: How Markets Work
Chapter 4 The Market Forces of Supply and Demand 4-1
Part 3 The Data of Macroeconomics
Chapter 5 Measuring a Nation’s Income 5-1
Chapter 6 Measuring the Cost of Living 6-1
Part 4 The Real Economy in the Long Run
Chapter 7 Production and Growth 7-1
Chapter 8 Saving, Investment, and the Financial System 8-1
Chapter 9 Unemployment and Its Natural Rate 9-1
Part 5 Money And Prices in the Long Run
Chapter 10 The Monetary System 10-1
Chapter 11 Money Growth and Inflation 11-1
Part 6 The Macroeconomics of Open Economies
Chapter 12 Open-Economy Macroeconomics: Basic Concepts 12-1
Chapter 13 A Macroeconomic Theory of the Small Open Economy 13-1
Part 7 Short-Run Economic Fluctuations
Chapter 14 Aggregate Demand and Aggregate Supply 14-1
Chapter 15 The Influence of Monetary and Fiscal Policy on Aggregate Demand 15-1
Chapter 16 The Short-Run Tradeoff between Inflation and Unemployment 16-1
Part 8 Final Thoughts
Chapter 17 Five Debates over Macroeconomic Policy 17-1
iii
, PREFACE
In most post-secondary courses, a large percentage of student assessment is based on
multiple- choice testing. Many instructors use multiple-choice reluctantly, believing
that it is a methodology best used for testing what a student remembers rather than
what she or he has learned.
Nelson Education Ltd. understands that a good quality multiple-choice test bank can
provide the means to measure higher-level thinking skills as well as recall.
Recognizing the importance of multiple-choice testing in today’s classroom, we have
created NETA—the Nelson Education Teaching Advantage program—to ensure
the value of our high quality test banks.
The NETA program was created in partnership with David DiBattista, a 3M National
Teaching Fellow, professor of psychology at Brock University, and researcher in the
area of multiple- choice testing. NETA ensures that subject-matter experts who
author test banks have had training in two areas: avoiding common errors in test
construction, and developing multiple- choice test questions that “get beyond
remembering” to assess higher-level thinking.
All NETA test banks include David DiBattista’s guide for instructors, “Multiple
Choice Tests: Getting Beyond Remembering.” This guide has been designed to assist
you in using Nelson test banks to achieve your desired outcomes in your course.
The Test Bank for Principles of Macroeconomics, Sixth Canadian Edition has been
revised for Canadian students by Constantin Colonescu, MacEwan University. The
multiple-choice questions were written and edited to conform to NETA guidelines,
which emphasize the development of higher-order thinking and the effective
construction of questions. NETA principles of question construction help eliminate
ambiguity, arguable answers, guesswork, and unconscious cues to test-savvy
students, resulting in a test that accurately reflects student understanding. The Test
Bank offers over 3510 questions, including about 2822 multiple choice, about 362
true/false, about 162 problems, and about 164 short answer questions.
In addition to providing a variety of questions related to each chapter objective, this
test bank also employs a series of tags that can help design effective, balanced tests by
the measure of course outcomes. All of the tags are included with the question in the
test bank. These tags include:
ANS: The correct answer. (Suggested answers are provided for the short answer
questions.)
4
Test Bank
to accompany
Test Bank prepared
by Constantin
Colonescu
MacEwan
University
,NETA Assessment: Test Bank to accompany Principles of Macroeconomics,
Sixth Canadian Edition
By N. Gregory Mankiw / Ronald D. Kneebone / Kenneth J. McKenzie
Test Bank prepared by Constantin Colonescu, MacEwan University
NETA copy editor: Frances Robinson
Available on Instructor’s Resource CD ISBN . 0-17-655440-8
COPYRIGHT ©2014 by Nelson Education Ltd. Nelson is a registered trademark used
herein under licence. All rights reserved.
For more information contact Nelson, 1120 Birchmount Road, Toronto, Ontario M1K
5G4. Or you can visit our Internet site at www.nelson.com.
ALL RIGHTS RESERVED. No part of this work covered by the copyright hereon
may be reproduced or used in any form or by any means—graphic, electronic, or
mechanical, including photocopying, recording, taping, web distribution or
information storage and retrieval systems—without the written permission of the
publisher
ii
, TABLE OF CONTENTS
Part 1 Introduction
Chapter 1 Ten Principles of Economics 1-1
Chapter 2 Thinking Like an Economist 2-1
Chapter 3 Interdependence and the Gains from Trade 3-1
Part 2 Supply And Demand: How Markets Work
Chapter 4 The Market Forces of Supply and Demand 4-1
Part 3 The Data of Macroeconomics
Chapter 5 Measuring a Nation’s Income 5-1
Chapter 6 Measuring the Cost of Living 6-1
Part 4 The Real Economy in the Long Run
Chapter 7 Production and Growth 7-1
Chapter 8 Saving, Investment, and the Financial System 8-1
Chapter 9 Unemployment and Its Natural Rate 9-1
Part 5 Money And Prices in the Long Run
Chapter 10 The Monetary System 10-1
Chapter 11 Money Growth and Inflation 11-1
Part 6 The Macroeconomics of Open Economies
Chapter 12 Open-Economy Macroeconomics: Basic Concepts 12-1
Chapter 13 A Macroeconomic Theory of the Small Open Economy 13-1
Part 7 Short-Run Economic Fluctuations
Chapter 14 Aggregate Demand and Aggregate Supply 14-1
Chapter 15 The Influence of Monetary and Fiscal Policy on Aggregate Demand 15-1
Chapter 16 The Short-Run Tradeoff between Inflation and Unemployment 16-1
Part 8 Final Thoughts
Chapter 17 Five Debates over Macroeconomic Policy 17-1
iii
, PREFACE
In most post-secondary courses, a large percentage of student assessment is based on
multiple- choice testing. Many instructors use multiple-choice reluctantly, believing
that it is a methodology best used for testing what a student remembers rather than
what she or he has learned.
Nelson Education Ltd. understands that a good quality multiple-choice test bank can
provide the means to measure higher-level thinking skills as well as recall.
Recognizing the importance of multiple-choice testing in today’s classroom, we have
created NETA—the Nelson Education Teaching Advantage program—to ensure
the value of our high quality test banks.
The NETA program was created in partnership with David DiBattista, a 3M National
Teaching Fellow, professor of psychology at Brock University, and researcher in the
area of multiple- choice testing. NETA ensures that subject-matter experts who
author test banks have had training in two areas: avoiding common errors in test
construction, and developing multiple- choice test questions that “get beyond
remembering” to assess higher-level thinking.
All NETA test banks include David DiBattista’s guide for instructors, “Multiple
Choice Tests: Getting Beyond Remembering.” This guide has been designed to assist
you in using Nelson test banks to achieve your desired outcomes in your course.
The Test Bank for Principles of Macroeconomics, Sixth Canadian Edition has been
revised for Canadian students by Constantin Colonescu, MacEwan University. The
multiple-choice questions were written and edited to conform to NETA guidelines,
which emphasize the development of higher-order thinking and the effective
construction of questions. NETA principles of question construction help eliminate
ambiguity, arguable answers, guesswork, and unconscious cues to test-savvy
students, resulting in a test that accurately reflects student understanding. The Test
Bank offers over 3510 questions, including about 2822 multiple choice, about 362
true/false, about 162 problems, and about 164 short answer questions.
In addition to providing a variety of questions related to each chapter objective, this
test bank also employs a series of tags that can help design effective, balanced tests by
the measure of course outcomes. All of the tags are included with the question in the
test bank. These tags include:
ANS: The correct answer. (Suggested answers are provided for the short answer
questions.)
4
