NETA Assessment: Test Bank to accompany Principles of Macroeconomics, Sixth Canadian Edition

NETAASSESSMENT
n




Test Bank nn




to accompany
nn




Test Bank prepared
nn nn


by Constantin
nn nn


Colonescu MacEwan
nn nn


University
nn

,NETA Assessment: Test Bank to accompany Principles of Macroeconomics,
nn nn nn nn nn nn nn nn



Sixth Canadian Edition
nn nn




By N. Gregory Mankiw / Ronald D. Kneebone / Kenneth J. McKenzie
nn nn nn nn nn nn nn nn nn nn nn




Test Bank prepared by Constantin Colonescu, MacEwan University
nn nn nn nn nn nn nn




NETA copy editor: Frances Robinson
nn nn nn nn




Available on Instructor’s Resource CD ISBN . 0-17-655440-8
nn nn nn nn nn nn nn




COPYRIGHT ©2014 by Nelson Education Ltd. Nelson is a registered trademark used herein under licence.
nn nn nn nn nn nn nn nn nn nn nn nn nn nn


All
nn rights reserved.
n n nn




For more information contact Nelson, 1120 Birchmount Road, Toronto, Ontario
nn nn nn nn nn nn nn nn nn n n M1K 5G4. Or you can
nn nn nn nn


visit our
nn nnInternet site at www.nelson.com.
n n nn nn nn




ALL RIGHTS RESERVED. No part of this work covered by the copyright hereon may be reproduced or
nn nn nn nn nn nn nn nn nn nn nn nn nn nn nn nn


used in
nn any form or by any means—graphic, electronic, or mechanical, including photocopying,
nn n n nn nn nn nn nn nn nn nn nn nn


recording, taping, web
nn distribution or information storage and retrieval systems—without the written
nn nn n n nn nn nn nn nn nn nn nn


permission of the publisher
nn nn nn nn




ii

, TABLE OF CONTENTS nn nn




Part 1 Introduction
nn nn


Chapter 1 Ten Principles of Economics
nn nn nn nn nn 1-1
Chapter 2 Thinking Like an Economist
nn nn nn nn nn 2-1
Chapter 3 Interdependence and the Gains from Trade
nn nn nn nn nn nn nn 3-1

Part 2 Supply And Demand: How Markets Work
nn nn nn nn nn nn nn


Chapter 4 The Market Forces of Supply and Demand
nn nn nn nn nn nn nn nn 4-1

Part 3 The Data of Macroeconomics
nn nn nn nn nn


Chapter 5 Measuring a Nation’s Income
nn nn nn nn nn 5-1
Chapter 6 Measuring the Cost of Living
nn nn nn nn nn nn 6-1

Part 4 The Real Economy in the Long Run
nn nn nn nn nn nn nn nn


Chapter 7 Production and Growth
nn nn nn nn 7-1
Chapter 8 Saving, Investment, and the Financial System
nn nn nn nn nn nn nn 8-1
Chapter 9 Unemployment and Its Natural Rate
nn nn nn nn nn nn 9-1

Part 5 Money And Prices in the Long Run
nn nn nn nn nn nn nn nn


Chapter 10 The Monetary System
nn nn nn nn 10-1
Chapter 11 Money Growth and Inflation
nn nn nn nn nn 11-1

Part 6 The Macroeconomics of Open Economies
nn nn nn nn nn nn


Chapter 12 Open-Economy Macroeconomics: Basic Concepts
nn nn nn nn nn 12-1
Chapter 13 A Macroeconomic Theory of the Small Open Economy
nn nn nn nn nn nn nn nn nn 13-1

Part 7 Short-Run Economic Fluctuations
nn nn nn nn


Chapter 14 Aggregate Demand and Aggregate Supply
nn nn nn nn nn nn 14-1
Chapter 15 The Influence of Monetary and Fiscal Policy on Aggregate Demand
nn nn nn nn nn nn nn nn nn nn nn 15-1
Chapter 16 The Short-Run Tradeoff between Inflation and Unemployment
nn nn nn nn nn nn nn nn 16-1

Part 8 Final Thoughts
nn nn nn


Chapter 17 Five Debates over Macroeconomic Policy
nn nn nn nn nn nn 17-1




iii

, PREFACE




In most post-secondary courses, a large percentage of student assessment is based on
nn nn nn nn nn nn nn nn nn nn nn nn


multiple- choice testing. Many instructors use multiple-choice reluctantly, believing that
nn n n nn nn nn nn nn nn nn nn


it is a methodology best used for testing what a student remembers rather than
nn nn nn n n nn nn nn nn nn nn nn nn nn nn


what she or he has learned.
nn nn nn nn nn n n




Nelson Education Ltd. understands that a good quality multiple-choice test bank can
nn nn nn nn nn nn nn nn nn nn nn


provide the means to measure higher-level thinking skills as well as recall.
nn n n nn nn nn nn nn nn nn nn nn nn


Recognizing the importance of multiple-choice testing in today’s classroom, we have
nn nn n n nn nn nn nn nn nn nn nn


created NETA—the Nelson Education Teaching Advantage program—to ensure the
nn nn n n nn nn nn nn nn nn


value of our high quality test banks.
nn nn nn nn nn nn n n




The NETA program was created in partnership with David DiBattista, a 3M National
nn nn nn nn nn nn nn nn nn nn nn nn


Teaching Fellow, professor of psychology at Brock University, and researcher in the
nn n n nn nn nn nn nn nn nn nn nn nn


area of multiple- choice testing. NETA ensures that subject-matter experts who
nn nn nn n n nn nn nn nn nn nn nn


author test banks have had
nn training in two areas: avoiding common errors in test
nn nn nn nn n n nn nn nn nn nn nn nn nn


construction, and developing multiple- choice test questions that “get beyond
nn nn nn nn n n nn nn nn nn nn


remembering” to assess higher-level thinking.
nn nn nn nn nn




All NETA test banks include David DiBattista’s guide for instructors, “Multiple Choice
nn nn nn nn nn nn nn nn nn nn nn


Tests: Getting Beyond Remembering.” This guide has been designed to assist you in
nn n n nn nn nn nn nn nn nn nn nn nn nn


using Nelson test banks to achieve your desired outcomes in your course.
nn nn n n nn nn nn nn nn nn nn nn nn




The Test Bank for Principles of Macroeconomics, Sixth Canadian Edition has been
nn nn nn nn nn nn nn nn nn nn nn


revised for Canadian students by Constantin Colonescu, MacEwan University. The
nn nn n n nn nn nn nn nn nn nn


multiple-choice
nn questions were written and edited to conform to NETA guidelines,
n n nn nn nn nn nn nn nn nn nn


which emphasize the development of higher-order thinking and the effective
nn nn nn n n nn nn nn nn nn nn


construction of questions. NETA principles of question construction help eliminate
nn nn nn nn n n nn nn nn nn nn


ambiguity, arguable answers, guesswork,
nn and unconscious cues to test-savvy
nn nn nn n n nn nn nn nn


students, resulting in a test that accurately reflects student understanding. The Test
nn nn nn nn nn nn nn nn nn n n nn nn


Bank offers over 3510 questions, including about 2822 multiple choice, about 362
nn nn nn nn nn nn nn nn nn n n nn nn


true/false, about 162 problems, and about 164 short answer questions.
nn nn nn nn nn nn nn nn nn nn




In addition to providing a variety of questions related to each chapter objective, this
nn nn nn nn nn nn nn nn nn nn nn nn nn


test bank
nn also employs a series of tags that can help design effective, balanced tests
nn n n nn nn nn nn nn nn nn nn nn nn nn nn


by the measure of course outcomes. All of the tags are included with the question in
nn nn nn nn n n nn nn nn nn nn nn nn nn nn nn nn


the test bank. These tags include:
nn nn nn nn nn n n


 ANS: The correct answer. (Suggested answers are provided for the short answer
nn nn nn nn nn nn nn nn nn nn nn



4