Test Bank — Macroeconomics: Canada in the Global Environment, 11th Edition (Parkin & Bade, 2021) | All Chapters 1-15 Covered

TEST BANK
Microeconomics: Canada in the Global
Environment
Michael Parkin, Robin Bade
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11th Edition
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TEST BANK
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, TEST ITEM FILE
Jeannie Shearer
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University of Western Ontario




Microeconomics: Canada in
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the Global Environment
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Eleventh Edition
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Michael Parkin
University of Western Ontario
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Robin Bade
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, Contents
Chapter 1: What Is Economics?........................................................................................... 1
Chapter 2: The Economic Problem.................................................................................... 77
Chapter 3: Demand and Supply........................................................................................123
Chapter 4: Monitoring the Value of Production: GDP.....................................................181
Chapter 5: Monitoring Jobs and Inflation........................................................................ 224
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Chapter 6: Economic Growth...........................................................................................255
Chapter 7: Finance, Saving, and Investment.................................................................... 283
Chapter 8: Money, the Price Level, and Inflation............................................................ 330
Chapter 9: The Exchange Rate and the Balance of Payments..........................................368
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Chapter 10: Aggregate Supply and Aggregate Demand.................................................. 402
Chapter 11: Expenditure Multipliers................................................................................ 445
Chapter 12: The Business Cycle, Inflation, and Deflation...............................................497
Chapter 13: Fiscal Policy................................................................................................. 532
Chapter 14: Monetary Policy........................................................................................... 558
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Chapter 15: International Trade Policy............................................................................ 586
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, Microeconomics: Canada in Global Environment, 11e (Parkin/Bade)
Chapter 1 What Is Economics?

1.1 Definition of Economics

1) In a world characterized by scarcity
A) all goods are free.
B) opportunity cost is zero.
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C) we are not limited by time.
D) individuals need not work to obtain goods.
E) people must make choices among alternatives.
Answer: E
Diff: 1 Type: MC
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Topic: Definition of Economics

2) Which of the following is the best definition of economics?
A) the study of how a provincial government allocates tax dollars
B) the study of how consumers spend their income
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C) the study of how producers decide what inputs to hire and what outputs to produce
D) the study of how individuals, businesses, governments, and entire societies make choices as
they cope with scarcity and the incentives that influence and reconcile those choices
E) the study of how consumers and producers meet each other in the market
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Answer: D
Diff: 1 Type: MC
Topic: Definition of Economics

3) Which of the following is a microeconomic topic?
A) the reasons why a consumer buys less honey
B) the reasons why the average price level in a country falls
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C) the cause of increasing unemployment
D) the effect of the government budget deficit on inflation
E) the reasons why the labour force in a country decreases
Answer: A
Diff: 1 Type: MC
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Topic: Definition of Economics

4) The study of how wages are set for New Brunswick teachers is classified as
A) a macroeconomic topic.
B) a microeconomic topic.
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C) economics of social interest.
D) economics of private interest.
E) normative economics.
Answer: B
Diff: 1 Type: MC
Topic: Definition of Economics