, Table of Contents
1 The Nature and Method of Economics ................................................................ 1
2 The Economizing Problem................................................................................. 31
3 Individual Markets: Demand and Supply........................................................... 69
3W Applications and Extensions of Supply and Demand Analysis ....................... 109
4 The Market System .......................................................................................... 125
5 The U.S. Economy: Private and Public Sectors ............................................... 141
6 The United States in the Global Economy ....................................................... 175
7 Measuring Domestic Output and National Income.......................................... 197
8 Introduction to Economic Growth and Instability............................................ 229
9 Basic Macroeconomic Relationships ............................................................... 253
10 The Aggregate Expenditures Model ................................................................ 289
11 Aggregate Demand and Aggregate Supply...................................................... 335
12 Fiscal Policy ..................................................................................................... 369
13 Money and Banking ......................................................................................... 403
14 How Banks and Thrifts Create Money............................................................. 433
15 Monetary Policy ............................................................................................... 455
16 Extending the Analysis of Aggregate Supply .................................................. 489
17 Economic Growth ............................................................................................ 515
18 Deficits, Surpluses, and the Public Debt .......................................................... 531
19 Disputes over Macro Theory and Policy.......................................................... 547
20 Elasticity of Demand and Supply..................................................................... 575
21 Consumer Behavior and Utility Maximization ................................................ 611
22 The Costs of Production................................................................................... 647
23 Pure Competition.............................................................................................. 687
24 Pure Monopoly................................................................................................. 731
25 Monopolistic Competition and Oligopoly........................................................ 773
26 Technology, R&D, and Efficiency................................................................... 819
27 The Demand for Resources .............................................................................. 843
28 Wage Determination ........................................................................................ 875
29 Rent, Interest, and Profit .................................................................................. 909
30 Government and Market Failure ...................................................................... 929
31 Public Choice Theory and Taxation................................................................. 953
32 Antitrust Policy and Regulation ....................................................................... 979
33 Agriculture: Economics and Policy................................................................ 1001
34 Income Inequality and Poverty ...................................................................... 1021
35 Labor Market Institutions and Issues: Unionism,
Discrimination, and Immigration ................................................................... 1047
36 The Economics of Health Care ...................................................................... 1077
37 International Trade ......................................................................................... 1097
38 Exchange Rates, the Balance of Payments, and Trade Deficits..................... 1127
39W The Economics of Developing Countries (Internet-Only Chapter) ............... 1157
40W Transition Economies: Russia and China (Internet-Only Chapter) ............... 1177
,Preface
Test Bank I contains more than 6,300 multiple-choice and true-false questions. We have created
approximately 670 new question for this edition; the remaining 5,630 have been checked and refined to
ensure compatibility with the 16th Edition.
Test Bank I continues to be accurate, functional, and user-friendly.
1. New questions: All new question are so identified. This will provide long-time users of
Economics with a fresh set of questions.
2. Grouping by topic: As in previous editions, all questions are grouped by topic and sequenced in
the same order as the text material. A table at the beginning of each Test Bank chapter lists the
topics and corresponding question numbers. Each topic has been numbered for easy reference.
This sequencing should reduce the time required to make up well-balanced exams.
3. Consider This and Last Word questions: Test Bank I contains and identifies two or three
questions on each Consider This and Last Word vignette.
4. Coding: Each item contains a code that identifies the particular type of question. For example,
A=application of concept; D=definition; G=graphical analysis, and so forth. These codes are
identified following this Preface, while the coding itself is found above each question. Former
users of Test Bank I have found these codes useful in preparing exams and in identifying the
types of questions missed by students.
5. Page references: Each question includes a 16th Edition page reference. To aid instructors who are
using the paperback split volumes, we list three separate page numbers: E indicates the
Economics page number; MA indicates the Macroeconomics split volume page number; and MI
indicates the Microeconomics split volume page number.
All Test Bank I questions are also available in a Brownstone test generating system for PCs and
Macintosh computers. Contact your McGraw-Hill/Irwin sales representative for more information.
We wish to thank Robert Jensen for assistance and Becky Szura for her expertise in creating the
Brownstone Diploma version.
Stanley L Brue
Campbell R. McConnell
, Conversion Chart
There are three versions of the 16th edition of McConnell/Brue Economics:
Macroeconomics, Microeconomics, and Economics. Test Bank I follows the Economics
chapter order. Use the following chart to see how Test Bank I/Economics chapters
correspond with the other two books:
Economics/TB I Chapter Macroeconomics Chapter Microeconomics Chapter
1-6 1-6 1-6
7-19 7-19 ***
20-36 *** 7-23
37-38 20-21 24-25
3W 3W 3W
39W 22W ***
40W 23W 26W
Bold type indicates chapters common to all three books.
*** indicates chapters that do not appear in a particular split version of the text.
W indicates chapters that are available only at the book’s website,
www.mcconnell16.com.
1 The Nature and Method of Economics ................................................................ 1
2 The Economizing Problem................................................................................. 31
3 Individual Markets: Demand and Supply........................................................... 69
3W Applications and Extensions of Supply and Demand Analysis ....................... 109
4 The Market System .......................................................................................... 125
5 The U.S. Economy: Private and Public Sectors ............................................... 141
6 The United States in the Global Economy ....................................................... 175
7 Measuring Domestic Output and National Income.......................................... 197
8 Introduction to Economic Growth and Instability............................................ 229
9 Basic Macroeconomic Relationships ............................................................... 253
10 The Aggregate Expenditures Model ................................................................ 289
11 Aggregate Demand and Aggregate Supply...................................................... 335
12 Fiscal Policy ..................................................................................................... 369
13 Money and Banking ......................................................................................... 403
14 How Banks and Thrifts Create Money............................................................. 433
15 Monetary Policy ............................................................................................... 455
16 Extending the Analysis of Aggregate Supply .................................................. 489
17 Economic Growth ............................................................................................ 515
18 Deficits, Surpluses, and the Public Debt .......................................................... 531
19 Disputes over Macro Theory and Policy.......................................................... 547
20 Elasticity of Demand and Supply..................................................................... 575
21 Consumer Behavior and Utility Maximization ................................................ 611
22 The Costs of Production................................................................................... 647
23 Pure Competition.............................................................................................. 687
24 Pure Monopoly................................................................................................. 731
25 Monopolistic Competition and Oligopoly........................................................ 773
26 Technology, R&D, and Efficiency................................................................... 819
27 The Demand for Resources .............................................................................. 843
28 Wage Determination ........................................................................................ 875
29 Rent, Interest, and Profit .................................................................................. 909
30 Government and Market Failure ...................................................................... 929
31 Public Choice Theory and Taxation................................................................. 953
32 Antitrust Policy and Regulation ....................................................................... 979
33 Agriculture: Economics and Policy................................................................ 1001
34 Income Inequality and Poverty ...................................................................... 1021
35 Labor Market Institutions and Issues: Unionism,
Discrimination, and Immigration ................................................................... 1047
36 The Economics of Health Care ...................................................................... 1077
37 International Trade ......................................................................................... 1097
38 Exchange Rates, the Balance of Payments, and Trade Deficits..................... 1127
39W The Economics of Developing Countries (Internet-Only Chapter) ............... 1157
40W Transition Economies: Russia and China (Internet-Only Chapter) ............... 1177
,Preface
Test Bank I contains more than 6,300 multiple-choice and true-false questions. We have created
approximately 670 new question for this edition; the remaining 5,630 have been checked and refined to
ensure compatibility with the 16th Edition.
Test Bank I continues to be accurate, functional, and user-friendly.
1. New questions: All new question are so identified. This will provide long-time users of
Economics with a fresh set of questions.
2. Grouping by topic: As in previous editions, all questions are grouped by topic and sequenced in
the same order as the text material. A table at the beginning of each Test Bank chapter lists the
topics and corresponding question numbers. Each topic has been numbered for easy reference.
This sequencing should reduce the time required to make up well-balanced exams.
3. Consider This and Last Word questions: Test Bank I contains and identifies two or three
questions on each Consider This and Last Word vignette.
4. Coding: Each item contains a code that identifies the particular type of question. For example,
A=application of concept; D=definition; G=graphical analysis, and so forth. These codes are
identified following this Preface, while the coding itself is found above each question. Former
users of Test Bank I have found these codes useful in preparing exams and in identifying the
types of questions missed by students.
5. Page references: Each question includes a 16th Edition page reference. To aid instructors who are
using the paperback split volumes, we list three separate page numbers: E indicates the
Economics page number; MA indicates the Macroeconomics split volume page number; and MI
indicates the Microeconomics split volume page number.
All Test Bank I questions are also available in a Brownstone test generating system for PCs and
Macintosh computers. Contact your McGraw-Hill/Irwin sales representative for more information.
We wish to thank Robert Jensen for assistance and Becky Szura for her expertise in creating the
Brownstone Diploma version.
Stanley L Brue
Campbell R. McConnell
, Conversion Chart
There are three versions of the 16th edition of McConnell/Brue Economics:
Macroeconomics, Microeconomics, and Economics. Test Bank I follows the Economics
chapter order. Use the following chart to see how Test Bank I/Economics chapters
correspond with the other two books:
Economics/TB I Chapter Macroeconomics Chapter Microeconomics Chapter
1-6 1-6 1-6
7-19 7-19 ***
20-36 *** 7-23
37-38 20-21 24-25
3W 3W 3W
39W 22W ***
40W 23W 26W
Bold type indicates chapters common to all three books.
*** indicates chapters that do not appear in a particular split version of the text.
W indicates chapters that are available only at the book’s website,
www.mcconnell16.com.
