US T
co hi
in py s w
st ri or
ru gh k
ct t is
or la p
s’ ws ro
us a te
e nd cte
on i d
ly s f by
. or
,Reproduced by Pearson Addison-Wesley from electronic files supplied by author.
Copyright © 2005 Pearson Education, Inc.
Publishing as Pearson Addison-Wesley, 75 Arlington Street, Boston, MA 02116
All rights reserved. This manual may be reproduced for classroom use only. Printed in the United States of America.
ISBN 0-321-23354-9
1 2 3 4 5 6 OPM 07 06 05 04
, P r e f a c e
Introduction
Seventh Edition Revisions
This book is one of six test banks, each carefully crafted We have made substantial revisions in preparing the
to be part of the most complete package of test banks test banks for the Seventh Edition:
ever offered to support a beginning economics text- i All the questions have been reviewed, to ensure
book. Three of the test banks are designed to accom- consistency with the text and clarity for the stu-
pany Michael Parkin’s Microeconomics, Seventh Edition dents. Questions dealing with material eliminated
and three accompany Michael Parkin’s Macroeconomics, from the seventh edition of the textbook were de-
Seventh Edition. The complete set of six books com- leted and a large number of new questions were
prises Microeconomics Test Bank, Volumes I, II, and III added to cover both the new as well as the old top-
and Macroeconomics Test Bank, Volumes I, II, and III. ics in the seventh edition. The new questions are
These books have undergone major revisions for this identified by an asterisk (*) following the style of
edition. Both the Microeconomics Test Bank Volumes I question.
and II and the Macroeconomics Test Bank Volumes I i The artwork was reviewed and changed to remain
and II now contain only multiple choice questions. consistent with the seventh edition of the text-
The multiple choice questions that in previous editions book.
were in Volume III of the test banks have now been
melded into Volumes I and II. Volume III for both the i To the greatest extent possible, the questions have
Microeconomics Test Bank and Macroeconomics Test been ordered so that they follow the order the ma-
Bank now contains large numbers of essay questions, terial is presented in the corresponding textbook
numerical questions, graphing questions, and extended chapter. You generally will find all questions on
problems. All of the different types of questions in the same topic clustered together so you can easily
Volume III have answers suitable for distribution to select the one you want. In addition, within each
your students. chapter the multiple choice questions are separated
by each major section of the text chapter so that if
you assign to the students only part of a chapter, it
Test Bank Principles
will be easy to select questions from that specific
Three principles guided the writing and revising of the part.
questions: i Many new essay, numeric, and graphing questions
i The questions should be “fail” insofar as the topic have been added, all with suggested answers. You
of the questions has been explained in the textbook. can use these answers to show students the type of
answer that you were expecting. Volume III is now
i A question should not be a guessing game forcing
specialized to include these types of questions.
the students to puzzle out what the question asks.
i The test banks are available in both a user-friendly
i An instructor must be absolutely secure in the
computerized test bank and in Word doc files. For
knowledge that each question contains material
some instructors, the ease of simply cutting and
covered in the textbook.
pasting from the Word files will exceed the utility
I endeavored to insure that all questions meet all the of the powerful computerized test bank. With this
criteria so that they are, as Donald Dutkowsky put it, edition, we accommodate both preferences.
“bullet proof.”
III
, IV PREFACE
Volumes I and II
question grouped together—that is, the essay questions
for each chapter are first, followed by the nu-
Taken together, there are nearly 15,000 multiple meric/graphing questions for each chapter, and so on.
choice questions in Volumes I and II of the test bank. In this fashion, if you want to write a strictly essay
These questions have been written by many contribu- question exam, it will be easy to do so. Of course,
tors. I have edited the questions to ensure that each within each chapter, the questions are arranged in the
conformed with the writing style established in the same order that the topics appear in the textbook.
book because this style has been carefully crafted for
maximum student comprehension. I also arranged the The extended problems need new to this edition of the
questions so that they are in the same order that the test banks. For each chapter there are 3 to 5 extended
topics are presented within the textbook. In addition, problems. These questions, are, as the name implies,
among questions dealing with a similar topic, the ques- longer questions. Sometimes the questions for a chapter
tions are ordered with non-numerical questions first, build upon each other; other times the questions are
questions dealing with a numerical table second, and independent. These questions can be used on exam.
questions dealing with a figure third. However, they may also be given to the students and
used as homework. I think the best way to view these
In addition to questions from the text, at the end of questions is as a valuable supplement to the out-
each chapter Volume I also contains multiple choice standing questions already in the textbook.
questions that are either the same as or else closely re-
lated to the questions in the Study Guide and on the
How to Assemble a Test
MyEconLab student website for the book. Each of these
questions is identified as to its source. So, if you have Because I have been teaching while working on these
assigned these student supplements to your class, you test banks, it has been natural to use them to create
have the means of “rewarding” students who are using tests for my class. Having thousands of excellent ques-
them by asking questions drawing on what they have tions immediately at hand made writing examinations
been studying. an easy and (almost) pleasant task.
The questions in each chapter of Volume I and Vol- Because my class consists of between 1,500 and 2,100
ume II are drawn from material covered only in that students a semester, I use exclusively multiple choice
chapter. A new feature of Volume II are “Part Review” questions. For each test, I decide a priori approximately
questions. These sections feature questions that are how many questions I want from each chapter. Clearly
drawn from material covered in more than one chapter my sense of the relative importance of the material
in each Part. These questions are all new. You can use plays a role here. I think this reflection is crucial be-
these questions if you want more integrative questions cause it ensures that my examinations cover the mate-
that lead students to think about broader issues. rial that I deem most important for my students to
I have been teaching principles classes for over two know.
decades, have written hundreds of exams, and won Because I write my tests using Word, I start the actual
several teaching awards. Nonetheless, I was stunned by writing process by taking an old test and eliminating all
the quality of the questions in the test banks. I lost but one question. Then, using the Word test bank files,
count of the number of times that I marveled at a ques- I locate a question that I want to use, copy the question
tion and wished that I had thought of it. While creat- from the test bank file to my test, and immediately
ing this test bank took significantly more effort than change the question number so that it is correct. As it
preparing an ordinary test bank, I am sure that the happens, I prefer a slightly different paragraph style for
quality you will find made the task worthwhile. my questions and answers than what is used in the test
bank. Using the Word “Format Painter” (the paint
Volume III
brush symbol) I copy the format I prefer from the old
question that I saved to the newly pasted question.
Volume III has been completely redone. It now con- Once I have a new question formatted with my pre-
sists of essay questions, numeric questions, graphing ferred paragraph style, I delete the old question.
questions, true or false questions, and extended prob-
I change the style of the question and answers because I
lems. Within each book, you will find each type of
prefer a slightly different font and because I format the
co hi
in py s w
st ri or
ru gh k
ct t is
or la p
s’ ws ro
us a te
e nd cte
on i d
ly s f by
. or
,Reproduced by Pearson Addison-Wesley from electronic files supplied by author.
Copyright © 2005 Pearson Education, Inc.
Publishing as Pearson Addison-Wesley, 75 Arlington Street, Boston, MA 02116
All rights reserved. This manual may be reproduced for classroom use only. Printed in the United States of America.
ISBN 0-321-23354-9
1 2 3 4 5 6 OPM 07 06 05 04
, P r e f a c e
Introduction
Seventh Edition Revisions
This book is one of six test banks, each carefully crafted We have made substantial revisions in preparing the
to be part of the most complete package of test banks test banks for the Seventh Edition:
ever offered to support a beginning economics text- i All the questions have been reviewed, to ensure
book. Three of the test banks are designed to accom- consistency with the text and clarity for the stu-
pany Michael Parkin’s Microeconomics, Seventh Edition dents. Questions dealing with material eliminated
and three accompany Michael Parkin’s Macroeconomics, from the seventh edition of the textbook were de-
Seventh Edition. The complete set of six books com- leted and a large number of new questions were
prises Microeconomics Test Bank, Volumes I, II, and III added to cover both the new as well as the old top-
and Macroeconomics Test Bank, Volumes I, II, and III. ics in the seventh edition. The new questions are
These books have undergone major revisions for this identified by an asterisk (*) following the style of
edition. Both the Microeconomics Test Bank Volumes I question.
and II and the Macroeconomics Test Bank Volumes I i The artwork was reviewed and changed to remain
and II now contain only multiple choice questions. consistent with the seventh edition of the text-
The multiple choice questions that in previous editions book.
were in Volume III of the test banks have now been
melded into Volumes I and II. Volume III for both the i To the greatest extent possible, the questions have
Microeconomics Test Bank and Macroeconomics Test been ordered so that they follow the order the ma-
Bank now contains large numbers of essay questions, terial is presented in the corresponding textbook
numerical questions, graphing questions, and extended chapter. You generally will find all questions on
problems. All of the different types of questions in the same topic clustered together so you can easily
Volume III have answers suitable for distribution to select the one you want. In addition, within each
your students. chapter the multiple choice questions are separated
by each major section of the text chapter so that if
you assign to the students only part of a chapter, it
Test Bank Principles
will be easy to select questions from that specific
Three principles guided the writing and revising of the part.
questions: i Many new essay, numeric, and graphing questions
i The questions should be “fail” insofar as the topic have been added, all with suggested answers. You
of the questions has been explained in the textbook. can use these answers to show students the type of
answer that you were expecting. Volume III is now
i A question should not be a guessing game forcing
specialized to include these types of questions.
the students to puzzle out what the question asks.
i The test banks are available in both a user-friendly
i An instructor must be absolutely secure in the
computerized test bank and in Word doc files. For
knowledge that each question contains material
some instructors, the ease of simply cutting and
covered in the textbook.
pasting from the Word files will exceed the utility
I endeavored to insure that all questions meet all the of the powerful computerized test bank. With this
criteria so that they are, as Donald Dutkowsky put it, edition, we accommodate both preferences.
“bullet proof.”
III
, IV PREFACE
Volumes I and II
question grouped together—that is, the essay questions
for each chapter are first, followed by the nu-
Taken together, there are nearly 15,000 multiple meric/graphing questions for each chapter, and so on.
choice questions in Volumes I and II of the test bank. In this fashion, if you want to write a strictly essay
These questions have been written by many contribu- question exam, it will be easy to do so. Of course,
tors. I have edited the questions to ensure that each within each chapter, the questions are arranged in the
conformed with the writing style established in the same order that the topics appear in the textbook.
book because this style has been carefully crafted for
maximum student comprehension. I also arranged the The extended problems need new to this edition of the
questions so that they are in the same order that the test banks. For each chapter there are 3 to 5 extended
topics are presented within the textbook. In addition, problems. These questions, are, as the name implies,
among questions dealing with a similar topic, the ques- longer questions. Sometimes the questions for a chapter
tions are ordered with non-numerical questions first, build upon each other; other times the questions are
questions dealing with a numerical table second, and independent. These questions can be used on exam.
questions dealing with a figure third. However, they may also be given to the students and
used as homework. I think the best way to view these
In addition to questions from the text, at the end of questions is as a valuable supplement to the out-
each chapter Volume I also contains multiple choice standing questions already in the textbook.
questions that are either the same as or else closely re-
lated to the questions in the Study Guide and on the
How to Assemble a Test
MyEconLab student website for the book. Each of these
questions is identified as to its source. So, if you have Because I have been teaching while working on these
assigned these student supplements to your class, you test banks, it has been natural to use them to create
have the means of “rewarding” students who are using tests for my class. Having thousands of excellent ques-
them by asking questions drawing on what they have tions immediately at hand made writing examinations
been studying. an easy and (almost) pleasant task.
The questions in each chapter of Volume I and Vol- Because my class consists of between 1,500 and 2,100
ume II are drawn from material covered only in that students a semester, I use exclusively multiple choice
chapter. A new feature of Volume II are “Part Review” questions. For each test, I decide a priori approximately
questions. These sections feature questions that are how many questions I want from each chapter. Clearly
drawn from material covered in more than one chapter my sense of the relative importance of the material
in each Part. These questions are all new. You can use plays a role here. I think this reflection is crucial be-
these questions if you want more integrative questions cause it ensures that my examinations cover the mate-
that lead students to think about broader issues. rial that I deem most important for my students to
I have been teaching principles classes for over two know.
decades, have written hundreds of exams, and won Because I write my tests using Word, I start the actual
several teaching awards. Nonetheless, I was stunned by writing process by taking an old test and eliminating all
the quality of the questions in the test banks. I lost but one question. Then, using the Word test bank files,
count of the number of times that I marveled at a ques- I locate a question that I want to use, copy the question
tion and wished that I had thought of it. While creat- from the test bank file to my test, and immediately
ing this test bank took significantly more effort than change the question number so that it is correct. As it
preparing an ordinary test bank, I am sure that the happens, I prefer a slightly different paragraph style for
quality you will find made the task worthwhile. my questions and answers than what is used in the test
bank. Using the Word “Format Painter” (the paint
Volume III
brush symbol) I copy the format I prefer from the old
question that I saved to the newly pasted question.
Volume III has been completely redone. It now con- Once I have a new question formatted with my pre-
sists of essay questions, numeric questions, graphing ferred paragraph style, I delete the old question.
questions, true or false questions, and extended prob-
I change the style of the question and answers because I
lems. Within each book, you will find each type of
prefer a slightly different font and because I format the
