TEST BANK
Economics, 12th Edition
by David C. Colander
ST
U
D
YL
AB
, Table of Content
Chapter 1: Economics and Economic Reasoning
Part 1 Introduction: Thinking Like an Economist
Chapter 2: The Production Possibility Model, Trade, and Globalization
Chapter 3: Economic Institutions
Chapter 4: Supply and Demand
Chapter 5: Using Supply and Demand
Chapter 6: Describing Supply and Demand: Elasticities
PART II Microeconomics
Chapter 7: Taxation and Government Intervention
Chapter 8: Market Failure versus Government Failure
Chapter 9: Comparative Advantage, Exchange Rates, and Globalization
Chapter 10: International Trade Policy
Chapter 11: Production and Cost Analysis I
ST
Chapter 12: Production and Cost Analysis II
Chapter 13: Perfect Competition
Chapter 14: Monopoly and Monopolistic Competition
Chapter 15: Oligopoly and Antitrust Policy
Chapter 16: Real-World Competition and Technology
U
Chapter 17: Work and the Labor Market
Chapter 18: Who Gets What? The Distribution of Income
Chapter 19: The Logic of Individual Choice: The Foundation of Supply and Demand
D
Chapter 20: Game Theory, Strategic Decision Making, and Behavioral Economics
Chapter 21: Thinking Like a Modern Economist
Chapter 22: Behavioral Economics and Modern Economic Policy
YL
Chapter 23: Microeconomic Policy, Economic Reasoning, and Beyond
Chapter 24: Economic Growth, Business Cycles, and Unemployment
PART III Macroeconomics
Chapter 25: Measuring and Describing the Aggregate Economy
Chapter 26: The Keynesian Short-Run Policy Model: Demand-Side Policies
AB
Chapter 27: The Classical Long-Run Policy Model: Growth and Supply-Side Policies
Chapter 28: The Financial Sector and the Economy
Chapter 29: Monetary Policy
Chapter 30: Financial Crises, Regulation, and the Crypto Challenge
Chapter 31: Deficits and Debt: The Austerity Debate
Chapter 32: The Fiscal Policy Dilemma
Chapter 33: Jobs and Unemployment
Chapter 34: Inflation, Deflation, and Macro Policy
Chapter 35: International Financial Policy
Chapter 36: Macro Policy in a Global Setting
Chapter 37: Structural Stagnation, Globalization, and the Post-COVID Blues
Chapter 38: Macro Policy in Developing Countries
,Student name:__________
TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false.
The answers to an economy's three central economic problems are determined by the interaction
of three forces: economic forces, political forces, and social forces.
true
false
Scarcity exists because economies cannot produce enough to meet the perceived desires of all
individuals.
ST
true
false
Only marginal costs, not sunk costs, affect economic decisions if individuals are rational.
U
true
D
false
The economic decision rule is to undertake an action only when the marginal benefits of that
YL
action are greater than its total costs.
true
false
AB
The opportunity cost of undertaking an activity includes any sunk cost.
true
false
The "invisible hand" is the price mechanism that guides people’s actions in the market.
true
false
Version 1 1
, Social and political forces affect the way in which the invisible hand works.
true
false
Macroeconomics is the study of how individual choices are affected by economic forces.
true
false
ST
Deciding what the distribution of income should be is an example of normative economics.
true
false
U
MULTIPLE CHOICE - Choose the one alternative that best completes the statement or
answers the question.
D
Say a pill existed that made people selfless. After taking it they were only interested in others,
not themselves. Under the coordination definition of economics:
YL
no economic problem would exist.
there still would be an economic problem.
there would be a political problem but not an economic problem.
AB
there would be a social problem but not an economic problem.
According to the text, economics is the study of how:
governments allocate resources in the face of constraints.
government policies can be used to meet individuals' wants and desires.
human beings coordinate their wants and desires.
scarce resources are allocated between capitalists and workers.
Dorm rooms usually are not allocated by markets. Allocating dorm rooms is:
Version 1 2
Economics, 12th Edition
by David C. Colander
ST
U
D
YL
AB
, Table of Content
Chapter 1: Economics and Economic Reasoning
Part 1 Introduction: Thinking Like an Economist
Chapter 2: The Production Possibility Model, Trade, and Globalization
Chapter 3: Economic Institutions
Chapter 4: Supply and Demand
Chapter 5: Using Supply and Demand
Chapter 6: Describing Supply and Demand: Elasticities
PART II Microeconomics
Chapter 7: Taxation and Government Intervention
Chapter 8: Market Failure versus Government Failure
Chapter 9: Comparative Advantage, Exchange Rates, and Globalization
Chapter 10: International Trade Policy
Chapter 11: Production and Cost Analysis I
ST
Chapter 12: Production and Cost Analysis II
Chapter 13: Perfect Competition
Chapter 14: Monopoly and Monopolistic Competition
Chapter 15: Oligopoly and Antitrust Policy
Chapter 16: Real-World Competition and Technology
U
Chapter 17: Work and the Labor Market
Chapter 18: Who Gets What? The Distribution of Income
Chapter 19: The Logic of Individual Choice: The Foundation of Supply and Demand
D
Chapter 20: Game Theory, Strategic Decision Making, and Behavioral Economics
Chapter 21: Thinking Like a Modern Economist
Chapter 22: Behavioral Economics and Modern Economic Policy
YL
Chapter 23: Microeconomic Policy, Economic Reasoning, and Beyond
Chapter 24: Economic Growth, Business Cycles, and Unemployment
PART III Macroeconomics
Chapter 25: Measuring and Describing the Aggregate Economy
Chapter 26: The Keynesian Short-Run Policy Model: Demand-Side Policies
AB
Chapter 27: The Classical Long-Run Policy Model: Growth and Supply-Side Policies
Chapter 28: The Financial Sector and the Economy
Chapter 29: Monetary Policy
Chapter 30: Financial Crises, Regulation, and the Crypto Challenge
Chapter 31: Deficits and Debt: The Austerity Debate
Chapter 32: The Fiscal Policy Dilemma
Chapter 33: Jobs and Unemployment
Chapter 34: Inflation, Deflation, and Macro Policy
Chapter 35: International Financial Policy
Chapter 36: Macro Policy in a Global Setting
Chapter 37: Structural Stagnation, Globalization, and the Post-COVID Blues
Chapter 38: Macro Policy in Developing Countries
,Student name:__________
TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false.
The answers to an economy's three central economic problems are determined by the interaction
of three forces: economic forces, political forces, and social forces.
true
false
Scarcity exists because economies cannot produce enough to meet the perceived desires of all
individuals.
ST
true
false
Only marginal costs, not sunk costs, affect economic decisions if individuals are rational.
U
true
D
false
The economic decision rule is to undertake an action only when the marginal benefits of that
YL
action are greater than its total costs.
true
false
AB
The opportunity cost of undertaking an activity includes any sunk cost.
true
false
The "invisible hand" is the price mechanism that guides people’s actions in the market.
true
false
Version 1 1
, Social and political forces affect the way in which the invisible hand works.
true
false
Macroeconomics is the study of how individual choices are affected by economic forces.
true
false
ST
Deciding what the distribution of income should be is an example of normative economics.
true
false
U
MULTIPLE CHOICE - Choose the one alternative that best completes the statement or
answers the question.
D
Say a pill existed that made people selfless. After taking it they were only interested in others,
not themselves. Under the coordination definition of economics:
YL
no economic problem would exist.
there still would be an economic problem.
there would be a political problem but not an economic problem.
AB
there would be a social problem but not an economic problem.
According to the text, economics is the study of how:
governments allocate resources in the face of constraints.
government policies can be used to meet individuals' wants and desires.
human beings coordinate their wants and desires.
scarce resources are allocated between capitalists and workers.
Dorm rooms usually are not allocated by markets. Allocating dorm rooms is:
Version 1 2
