Test Bank for The Macroeconomy Today, 17th Edition by Bradley Schiller| All Chapters 1-21 Covered, Complete Solutions

Test Bank

The Macroeconomy Today,
By Bradley Schiller


17th Edition

,Table Of Contents

Part 1: The Economic Challenge
Chapter 1: Economics: The Core Issues
Appendix: Using Graphs
Chapter 2: The U.S. Economy: A Global View
Chapter 3: Supply And Demand
Chapter 4: The Role Of Government

Part 2: Measuring Macro Outcomes
Chapter 5: National Income Accounting
Chapter 6: Unemployment
Chapter 7: Inflation

Part 3: Cyclical Instability
Chapter 8: The Business Cycle
Chapter 9: Aggregate Demand
Appendix: The Keynesian Cross
Chapter 10: Self-Adjustment Or Instability?

Part 4: Fiscal Policy Tools
Chapter 11: Fiscal Policy
Chapter 12: Deficits And Debt

Part 5: Monetary Policy Options
Chapter 13: Money And Banks
Chapter 14: The Federal Reserve System
Chapter 15: Monetary Policy

Part 6: Supply-Side Options
Chapter 16: Supply-Side Policy: Short-Run Options
Chapter 17: Growth And Productivity: Long-Run Possibilities

Part 7: Policy Constraints
Chapter 18: Theory Versus Reality

Part 8: International Economics
Chapter 19: International Trade
Chapter 20: International Finance
Chapter 21: Global Poverty

,Chapter 1: Economics: The Core Issues
Student name:
True/false - write 't' if the statement is true and 'f' if the statement is false.
1) Scarcity results when available resources cannot satisfy all desired uses of those
resources.

⊚ true
⊚ false


2) Critics of government regulation argue that government interference in the marketplace
stifles the "animal spirits" of entrepreneurship.

⊚ true
⊚ false


3) Opportunity cost is a theoretical concept with no practical application.

⊚ true
⊚ false


4) Every time we use scarce resources in one way, we give up the opportunity to use them in
other ways.

⊚ true
⊚ false


5) Production possibilities in an economy decrease as more resources and better technology
are utilized.

⊚ true
⊚ false


6) All output combinations that lie outside a production possibilities curve are attainable
with available resources and technology.

⊚ true
⊚ false

, 7) Output combinations that lie inside the production possibilities curve are characterized by
efficient use of resources.

⊚ true
⊚ false


8) If the economy is inside the production possibilities curve, then more output can be
produced using existing resources.

⊚ true
⊚ false


9) All economies must make decisions concerning what to produce, how to produce it, and
for whom to produce.

⊚ true
⊚ false


10) The essential feature of the market mechanism is the price signal.

⊚ true
⊚ false


11) Government failure occurs when government intervention fails to improve economic
outcomes or makes them worse.

⊚ true
⊚ false


12) Microeconomics is concerned with individual performance as well as the economy as a
whole.

⊚ true
⊚ false