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