NETA ASSESSMENT
Test Bank
to accompany
Test Bank prepared by
Constantin Colonescu
MacEwan University
NETA Assessment: Test Bank to accompany Principles of Macroeconomics,
, Sixth Canadian Edition
By N. Gregory Mankiw / Ronald D. Kneebone / Kenneth J. McKenzie
Test Bank prepared by Constantin Colonescu, MacEwan University
NETA copy editor: Frances Robinson
Available on Instructor’s Resource CD ISBN . 0-17-655440-8
COPYRIGHT ©2014 by Nelson Education Ltd. Nelson is a registered trademark used herein under licence. All
rights reserved.
For more information contact Nelson, 1120 Birchmount Road, Toronto, Ontario M1K 5G4. Or you can visit our
Internet site at www.nelson.com.
ALL RIGHTS RESERVED. No part of this work covered by the copyright hereon may be reproduced or used in any
form or by any means—graphic, electronic, or mechanical, including photocopying, recording, taping, web
distribution or information storage and retrieval systems—without the written permission of the publisher
TABLE OF CONTENTS
Part 1 Introduction
Chapter 1 Ten Principles of Economics 1-1
Chapter 2 Thinking Like an Economist 2-1
Chapter 3 Interdependence and the Gains from Trade 3-1
Part 2 Supply And Demand: How Markets Work
Chapter 4 The Market Forces of Supply and Demand 4-1
Part 3 The Data of Macroeconomics
Chapter 5 Measuring a Nation’s Income 5-1
Chapter 6 Measuring the Cost of Living 6-1
Part 4 The Real Economy in the Long Run
Chapter 7 Production and Growth 7-1
Chapter 8 Saving, Investment, and the Financial System 8-1
Chapter 9 Unemployment and Its Natural Rate 9-1
Part 5 Money And Prices in the Long Run
Chapter 10 The Monetary System 10-1
Chapter 11 Money Growth and Inflation 11-1
ii
,Part 6 The Macroeconomics of Open Economies
Chapter 12 Open-Economy Macroeconomics: Basic Concepts 12-1
Chapter 13 A Macroeconomic Theory of the Small Open Economy 13-1
Part 7 Short-Run Economic Fluctuations
Chapter 14 Aggregate Demand and Aggregate Supply 14-1
Chapter 15 The Influence of Monetary and Fiscal Policy on Aggregate Demand 15-1
Chapter 16 The Short-Run Tradeoff between Inflation and Unemployment 16-1
Part 8 Final Thoughts
Chapter 17 Five Debates over Macroeconomic Policy 17-1
PREFACE
In most post-secondary courses, a large percentage of student assessment is based on
multiple- choice testing. Many instructors use multiple-choice reluctantly, believing that it is a
methodology best used for testing what a student remembers rather than what she or he has
learned.
Nelson Education Ltd. understands that a good quality multiple-choice test bank can provide
the means to measure higher-level thinking skills as well as recall. Recognizing the
importance of multiple-choice testing in today’s classroom, we have created NETA—the
Nelson Education Teaching Advantage program—to ensure the value of our high quality test
banks.
The NETA program was created in partnership with David DiBattista, a 3M National Teaching
Fellow, professor of psychology at Brock University, and researcher in the area of multiple-
choice testing. NETA ensures that subject-matter experts who author test banks have had
training in two areas: avoiding common errors in test construction, and developing multiple-
choice test questions that “get beyond remembering” to assess higher-level thinking.
All NETA test banks include David DiBattista’s guide for instructors, “Multiple Choice Tests:
Getting Beyond Remembering.” This guide has been designed to assist you in using Nelson
test banks to achieve your desired outcomes in your course.
The Test Bank for Principles of Macroeconomics, Sixth Canadian Edition has been revised for
Canadian students by Constantin Colonescu, MacEwan University. The multiple-choice
questions were written and edited to conform to NETA guidelines, which emphasize the
development of higher-order thinking and the effective construction of questions. NETA
principles of question construction help eliminate ambiguity, arguable answers, guesswork,
and unconscious cues to test-savvy students, resulting in a test that accurately reflects
iii
, student understanding. The Test Bank offers over 3510 questions, including about 2822
multiple choice, about 362 true/false, about 162 problems, and about 164 short answer
questions.
In addition to providing a variety of questions related to each chapter objective, this test bank
also employs a series of tags that can help design effective, balanced tests by the measure of
course outcomes. All of the tags are included with the question in the test bank. These tags
include:
ANS: The correct answer. (Suggested answers are provided for the short answer questions.)
PTS: The number of points an instructor can assign for each question. The default is 1
point.
BLM: The category from Bloom’s taxonomy for learning (Remember or Higher Order).
This category is included to assist instructors in assessing student’s higher-order
cognitive skills.
DIF: The difficulty level of question in terms of Easy, Moderate, Challenging.
REF: The related page number in the text.
The Computerized Test Bank
All items from this Test Bank are also available in ExamView®, a computerized testing
package with online capabilities. ExamView® helps you create, customize and deliver both
print and online tests in minutes. Its “what you see is what you get” interface and easy-to-
use test wizard guide you step-by-step through the test creation process. The ExamView®
Test Bank files and software are included on the Instructor’s Resource CD in Windows PC
and Macintosh platforms ISBN 0-17-655440-8.
Chapter 1—Ten Principles of Economics
MULTIPLE CHOICE
1. Which word comes from the Greek word for “one who manages a household”?
a. market
b. consumer
c. producer
d. economy
ANS: D PTS: 1 DIF: Easy REF: p. 3-4
BLM: Remember NOT: Macro TB_1-1
2. From which Greek word(s) is the word economy derived?
a. environment
b. one who manages a household
c. one who participates in a market
d. conservation
ANS: B PTS: 1 DIF: Easy REF: p. 3-4
BLM: Remember NOT: Macro TB_1-2
5
Test Bank
to accompany
Test Bank prepared by
Constantin Colonescu
MacEwan University
NETA Assessment: Test Bank to accompany Principles of Macroeconomics,
, Sixth Canadian Edition
By N. Gregory Mankiw / Ronald D. Kneebone / Kenneth J. McKenzie
Test Bank prepared by Constantin Colonescu, MacEwan University
NETA copy editor: Frances Robinson
Available on Instructor’s Resource CD ISBN . 0-17-655440-8
COPYRIGHT ©2014 by Nelson Education Ltd. Nelson is a registered trademark used herein under licence. All
rights reserved.
For more information contact Nelson, 1120 Birchmount Road, Toronto, Ontario M1K 5G4. Or you can visit our
Internet site at www.nelson.com.
ALL RIGHTS RESERVED. No part of this work covered by the copyright hereon may be reproduced or used in any
form or by any means—graphic, electronic, or mechanical, including photocopying, recording, taping, web
distribution or information storage and retrieval systems—without the written permission of the publisher
TABLE OF CONTENTS
Part 1 Introduction
Chapter 1 Ten Principles of Economics 1-1
Chapter 2 Thinking Like an Economist 2-1
Chapter 3 Interdependence and the Gains from Trade 3-1
Part 2 Supply And Demand: How Markets Work
Chapter 4 The Market Forces of Supply and Demand 4-1
Part 3 The Data of Macroeconomics
Chapter 5 Measuring a Nation’s Income 5-1
Chapter 6 Measuring the Cost of Living 6-1
Part 4 The Real Economy in the Long Run
Chapter 7 Production and Growth 7-1
Chapter 8 Saving, Investment, and the Financial System 8-1
Chapter 9 Unemployment and Its Natural Rate 9-1
Part 5 Money And Prices in the Long Run
Chapter 10 The Monetary System 10-1
Chapter 11 Money Growth and Inflation 11-1
ii
,Part 6 The Macroeconomics of Open Economies
Chapter 12 Open-Economy Macroeconomics: Basic Concepts 12-1
Chapter 13 A Macroeconomic Theory of the Small Open Economy 13-1
Part 7 Short-Run Economic Fluctuations
Chapter 14 Aggregate Demand and Aggregate Supply 14-1
Chapter 15 The Influence of Monetary and Fiscal Policy on Aggregate Demand 15-1
Chapter 16 The Short-Run Tradeoff between Inflation and Unemployment 16-1
Part 8 Final Thoughts
Chapter 17 Five Debates over Macroeconomic Policy 17-1
PREFACE
In most post-secondary courses, a large percentage of student assessment is based on
multiple- choice testing. Many instructors use multiple-choice reluctantly, believing that it is a
methodology best used for testing what a student remembers rather than what she or he has
learned.
Nelson Education Ltd. understands that a good quality multiple-choice test bank can provide
the means to measure higher-level thinking skills as well as recall. Recognizing the
importance of multiple-choice testing in today’s classroom, we have created NETA—the
Nelson Education Teaching Advantage program—to ensure the value of our high quality test
banks.
The NETA program was created in partnership with David DiBattista, a 3M National Teaching
Fellow, professor of psychology at Brock University, and researcher in the area of multiple-
choice testing. NETA ensures that subject-matter experts who author test banks have had
training in two areas: avoiding common errors in test construction, and developing multiple-
choice test questions that “get beyond remembering” to assess higher-level thinking.
All NETA test banks include David DiBattista’s guide for instructors, “Multiple Choice Tests:
Getting Beyond Remembering.” This guide has been designed to assist you in using Nelson
test banks to achieve your desired outcomes in your course.
The Test Bank for Principles of Macroeconomics, Sixth Canadian Edition has been revised for
Canadian students by Constantin Colonescu, MacEwan University. The multiple-choice
questions were written and edited to conform to NETA guidelines, which emphasize the
development of higher-order thinking and the effective construction of questions. NETA
principles of question construction help eliminate ambiguity, arguable answers, guesswork,
and unconscious cues to test-savvy students, resulting in a test that accurately reflects
iii
, student understanding. The Test Bank offers over 3510 questions, including about 2822
multiple choice, about 362 true/false, about 162 problems, and about 164 short answer
questions.
In addition to providing a variety of questions related to each chapter objective, this test bank
also employs a series of tags that can help design effective, balanced tests by the measure of
course outcomes. All of the tags are included with the question in the test bank. These tags
include:
ANS: The correct answer. (Suggested answers are provided for the short answer questions.)
PTS: The number of points an instructor can assign for each question. The default is 1
point.
BLM: The category from Bloom’s taxonomy for learning (Remember or Higher Order).
This category is included to assist instructors in assessing student’s higher-order
cognitive skills.
DIF: The difficulty level of question in terms of Easy, Moderate, Challenging.
REF: The related page number in the text.
The Computerized Test Bank
All items from this Test Bank are also available in ExamView®, a computerized testing
package with online capabilities. ExamView® helps you create, customize and deliver both
print and online tests in minutes. Its “what you see is what you get” interface and easy-to-
use test wizard guide you step-by-step through the test creation process. The ExamView®
Test Bank files and software are included on the Instructor’s Resource CD in Windows PC
and Macintosh platforms ISBN 0-17-655440-8.
Chapter 1—Ten Principles of Economics
MULTIPLE CHOICE
1. Which word comes from the Greek word for “one who manages a household”?
a. market
b. consumer
c. producer
d. economy
ANS: D PTS: 1 DIF: Easy REF: p. 3-4
BLM: Remember NOT: Macro TB_1-1
2. From which Greek word(s) is the word economy derived?
a. environment
b. one who manages a household
c. one who participates in a market
d. conservation
ANS: B PTS: 1 DIF: Easy REF: p. 3-4
BLM: Remember NOT: Macro TB_1-2
5
