Test Bank Complete_
Principles Of Macroeconomics 11th Edition, (2026 Updates)
By N. Gregory Mankiw
All Chapters 1-24| Latest Version| Verified Answers| Rated A+
From: [Bestmaxsolutions.Stuvia
,Chapter 1. Ten Principles Of Economics ------------------------------------------------------------------------ 3
Chapter 2. Thinking Like An Economist ----------------------------------------------------------------------- 53
Chapter 3. Interdependence And The Gains From Trade ---------------------------------------------- 108
Chapter 4. The Market Forces Of Supply And Demand ------------------------------------------------- 166
Chapter 5. Elasticity and Its Application ------------------------------------------------------------------- 236
Chapter 6. Supply, Demand, And Government Policies ------------------------------------------------ 345
Chapter 7. Consumers, Producers, And The Efficiency Of Markets ---------------------------------- 402
Chapter 8. Application: The Costs Of Taxation ----------------------------------------------------------- 442
Chapter 9. Application: International Trade -------------------------------------------------------------- 501
Chapter 10. Measuring A Nation's Income ---------------------------------------------------------------- 558
Chapter 11. Measuring The Cost Of Living----------------------------------------------------------------- 602
Chapter 12. Production And Growth ------------------------------------------------------------------------ 651
Chapter 13. Saving, Investment, And The Financial System ------------------------------------------ 700
Chapter 14. The Basic Tools Of Finance -------------------------------------------------------------------- 753
Chapter 15. Unemployment ----------------------------------------------------------------------------------- 792
Chapter 16. The Monetary System -------------------------------------------------------------------------- 842
Chapter 17. Money Growth And Inflation ----------------------------------------------------------------- 888
Chapter 18. Open-Economy Macroeconomics: Basic Concepts -------------------------------------- 935
Chapter 19. A Macroeconomic Theory Of The Open Economy --------------------------------------- 989
Chapter 20. Aggregate Demand And Aggregate Supply---------------------------------------------- 1037
Chapter 21. The Influence Of Monetary And Fiscal Policy On Aggregate Demand ------------ 1093
Chapter 22. The Keynesian Cross ---------------------------------------------------------------------------- 1149
Chapter 23. The Short-Run Trade-off Between Inflation And Unemployment ------------------ 1165
Chapter 24. Five Debates Over Macroeconomic Policy------------------------------------------------ 1214
,Chapter 1. Ten Principles Of Economics
N. Gregory Mankiw: Principles of Macroeconomics 11th Edition, Test Bank
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
The Word Economy Comes From The Greek Term Oikonomos, Meaning “One Who
Manages A Household.” Economics Studies How Households—And Entire Societies—
Manage Limited Resources, Making This Term The Foundation Of The Discipline.
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
The Greek Roots Oikos (Household) And Nomos (Management Or Rule) Combine To
Mean “One Who Manages A Household.” This Reflects The Idea That Economics Is
About Managing Resources Wisely.
3. What Do Households And Economies Have In Common?
A. They Both Must Allocate Scarce Resources.
B. They Both Face Many Decisions.
C. They Both Must Allocate The Goods And Services They Produce.
D. They Both Must Have A Central Decision Maker.
ANS: D PTS: 1 DIF: Average REF: P. 3–4
BLM: Remember NOT: Macro TB_1-3
Households Typically Have A Central Decision Maker (Such As Parents), But
Economies Do Not Necessarily Have One Central Authority Making All Decisions.
, Instead, Decisions Are Often Made Through Markets Or Decentralized Systems, Making
Option D The Correct Choice.
4. What Concept Does Economics Primarily Deal With?
A. Scarcity
B. Poverty
C. Change
D. Power
ANS: A PTS: 1 DIF: Easy REF: P. 4
BLM: Remember NOT: Macro TB_1-4
Economics Is Fundamentally About Scarcity, Which Arises Because Resources Are
Limited While Human Wants Are Unlimited. This Scarcity Forces Individuals And
Societies To Make Choices.
5. Which Of The Following Is NOT Included In The Decisions That Every Society Must
Make?
A. What Goods Will Be Produced
B. Who Will Produce The Goods
C. What Determines Consumer Preferences
D. Who Will Consume The Goods
ANS: C PTS: 1 DIF: Average REF: P. 4
BLM: Remember NOT: Macro TB_1-5
Societies Must Decide What To Produce, How To Produce It, And Who Gets It.
Consumer Preferences Exist Independently And Are Shaped By Tastes, Culture, And
Income—Not By Societal Planning Decisions.
6. Why Do Both Households And Societies Face Many Decisions?
A. Because Resources Are Scarce
B. Because Populations May Increase Or Decrease Over Time
C. Because Wages For Households And Therefore Society Fluctuate With Business
Cycles
D. Because People, By Nature, Tend To Disagree
ANS: A PTS: 1 DIF: Average REF: P. 4
BLM: Remember NOT: Macro TB_1-6
Scarcity Means Resources Are Limited, So Choices Must Be Made About How To Use
Time, Money, Labor, And Materials. This Applies To Both Individual Households And
Entire Societies.
7. When Is A Good Considered Scarce In A Society?
A. When More Output Of The Good Is Possible
Principles Of Macroeconomics 11th Edition, (2026 Updates)
By N. Gregory Mankiw
All Chapters 1-24| Latest Version| Verified Answers| Rated A+
From: [Bestmaxsolutions.Stuvia
,Chapter 1. Ten Principles Of Economics ------------------------------------------------------------------------ 3
Chapter 2. Thinking Like An Economist ----------------------------------------------------------------------- 53
Chapter 3. Interdependence And The Gains From Trade ---------------------------------------------- 108
Chapter 4. The Market Forces Of Supply And Demand ------------------------------------------------- 166
Chapter 5. Elasticity and Its Application ------------------------------------------------------------------- 236
Chapter 6. Supply, Demand, And Government Policies ------------------------------------------------ 345
Chapter 7. Consumers, Producers, And The Efficiency Of Markets ---------------------------------- 402
Chapter 8. Application: The Costs Of Taxation ----------------------------------------------------------- 442
Chapter 9. Application: International Trade -------------------------------------------------------------- 501
Chapter 10. Measuring A Nation's Income ---------------------------------------------------------------- 558
Chapter 11. Measuring The Cost Of Living----------------------------------------------------------------- 602
Chapter 12. Production And Growth ------------------------------------------------------------------------ 651
Chapter 13. Saving, Investment, And The Financial System ------------------------------------------ 700
Chapter 14. The Basic Tools Of Finance -------------------------------------------------------------------- 753
Chapter 15. Unemployment ----------------------------------------------------------------------------------- 792
Chapter 16. The Monetary System -------------------------------------------------------------------------- 842
Chapter 17. Money Growth And Inflation ----------------------------------------------------------------- 888
Chapter 18. Open-Economy Macroeconomics: Basic Concepts -------------------------------------- 935
Chapter 19. A Macroeconomic Theory Of The Open Economy --------------------------------------- 989
Chapter 20. Aggregate Demand And Aggregate Supply---------------------------------------------- 1037
Chapter 21. The Influence Of Monetary And Fiscal Policy On Aggregate Demand ------------ 1093
Chapter 22. The Keynesian Cross ---------------------------------------------------------------------------- 1149
Chapter 23. The Short-Run Trade-off Between Inflation And Unemployment ------------------ 1165
Chapter 24. Five Debates Over Macroeconomic Policy------------------------------------------------ 1214
,Chapter 1. Ten Principles Of Economics
N. Gregory Mankiw: Principles of Macroeconomics 11th Edition, Test Bank
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
The Word Economy Comes From The Greek Term Oikonomos, Meaning “One Who
Manages A Household.” Economics Studies How Households—And Entire Societies—
Manage Limited Resources, Making This Term The Foundation Of The Discipline.
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
The Greek Roots Oikos (Household) And Nomos (Management Or Rule) Combine To
Mean “One Who Manages A Household.” This Reflects The Idea That Economics Is
About Managing Resources Wisely.
3. What Do Households And Economies Have In Common?
A. They Both Must Allocate Scarce Resources.
B. They Both Face Many Decisions.
C. They Both Must Allocate The Goods And Services They Produce.
D. They Both Must Have A Central Decision Maker.
ANS: D PTS: 1 DIF: Average REF: P. 3–4
BLM: Remember NOT: Macro TB_1-3
Households Typically Have A Central Decision Maker (Such As Parents), But
Economies Do Not Necessarily Have One Central Authority Making All Decisions.
, Instead, Decisions Are Often Made Through Markets Or Decentralized Systems, Making
Option D The Correct Choice.
4. What Concept Does Economics Primarily Deal With?
A. Scarcity
B. Poverty
C. Change
D. Power
ANS: A PTS: 1 DIF: Easy REF: P. 4
BLM: Remember NOT: Macro TB_1-4
Economics Is Fundamentally About Scarcity, Which Arises Because Resources Are
Limited While Human Wants Are Unlimited. This Scarcity Forces Individuals And
Societies To Make Choices.
5. Which Of The Following Is NOT Included In The Decisions That Every Society Must
Make?
A. What Goods Will Be Produced
B. Who Will Produce The Goods
C. What Determines Consumer Preferences
D. Who Will Consume The Goods
ANS: C PTS: 1 DIF: Average REF: P. 4
BLM: Remember NOT: Macro TB_1-5
Societies Must Decide What To Produce, How To Produce It, And Who Gets It.
Consumer Preferences Exist Independently And Are Shaped By Tastes, Culture, And
Income—Not By Societal Planning Decisions.
6. Why Do Both Households And Societies Face Many Decisions?
A. Because Resources Are Scarce
B. Because Populations May Increase Or Decrease Over Time
C. Because Wages For Households And Therefore Society Fluctuate With Business
Cycles
D. Because People, By Nature, Tend To Disagree
ANS: A PTS: 1 DIF: Average REF: P. 4
BLM: Remember NOT: Macro TB_1-6
Scarcity Means Resources Are Limited, So Choices Must Be Made About How To Use
Time, Money, Labor, And Materials. This Applies To Both Individual Households And
Entire Societies.
7. When Is A Good Considered Scarce In A Society?
A. When More Output Of The Good Is Possible
