Test Bank Macro-economics. 23rd Edition. by Sean Masaki Flynn, Campbell R. McConnell, Stanley L. Brue. All Chapters - Latest Edition - ISBN-

BESTLEC




Test Bank
Macro-economics
by Sean Masaki Flynn, Campbell R. McConnell, Stanley L. Brue



All Chapters - Latest Edition - ISBN-13 978-1266106934




C
LE
ST
BE




1

, BESTLEC




All Answers Provided at the End of Test Bank

TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false.

1) An economic model is an ideal or utopian type of economy that society should strive to
obtain through economic policy.

⊚ true
⊚ false



2) Because economic generalizations are simplifications from reality, they are impractical
and useless.




C
⊚ true
⊚ false LE
3) If economic theories are solidly based on relevant facts, then appropriate economic policy
becomes obvious and uncontroversial.
ST

⊚ true
⊚ false
BE


4) Normative statements are expressions of facts.

⊚ true
⊚ false



5) Positive statements are expressions of value judgments.

⊚ true
⊚ false



6) Macroeconomics explains the behavior of individual households and business firms;
microeconomics is concerned with the behavior of aggregates or the economy as a whole.

⊚ true


2

, BESTLEC




⊚ false



7) Purposeful behavior implies that everyone will make identical choices.
⊚ true
⊚ false



8) Marginal analysis means that decision makers compare the extra benefits with the extra
costs of a specific choice.

⊚ true
⊚ false




C
9) Rational individuals may make different choices because their preferences and
circumstances differ.

⊚ true
LE
⊚ false
ST

10) Choices entail marginal costs because resources are scarce.

⊚ true
BE


⊚ false



11) The production possibilities curve shows various combinations of two products that an
economy can produce when achieving full employment.

⊚ true
⊚ false



12) The entrepreneur's sole function is to combine other resources (land, labor, and capital) in
the production of some good or service.

⊚ true
⊚ false




3

, BESTLEC




13) Products and services are scarce because resources are scarce.

⊚ true
⊚ false

14) An economy cannot produce at a point outside of its production possibilities
curve because human economic wants are insatiable.

⊚ true
⊚ false



15) The process by which capital goods are accumulated is known as investment.




C
⊚ true
⊚ false
LE
16) The present choice of position on the production possibilities curve will not influence the
future location of the curve.
ST

⊚ true
⊚ false
BE


17) Although sleeping in on a work day or school day has an opportunity cost, sleeping late
on the weekend does not.

⊚ true
⊚ false




4