Test Bank for Macroeconomics, 16th Canadian Edition by Campbell R. McConnell

Test Bank For Macroeconomics 16ce Edition by McConnell

TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false.
1) Rational individuals may make different choices because their information and
circumstances differ.

⊚ true
⊚ false

Question Details
Accessibility : Keyboard Navigation
Learning Objective : 01-02 Define economics and the features of the economic way of thinking.
Topic : 01-05 Marginal Analysis: Comparing Benefits and Costs
Difficulty : Easy



2) Certain inherently desirable products such as education and health care should be
produced so long as resources are available.

⊚ true
⊚ false

Question Details
Accessibility : Keyboard Navigation
Learning Objective : 01-02 Define economics and the features of the economic way of thinking.
Topic : 01-07 Microeconomics and Macroeconomics
Difficulty : Medium



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

⊚ true
⊚ false

Question Details
Accessibility : Keyboard Navigation
Learning Objective : 01-02 Define economics and the features of the economic way of thinking.
Difficulty : Easy
Topic : 01-08 Microeconomics



4) Choices entail marginal costs because resources are scarce.

⊚ true
⊚ false
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,Question Details
Accessibility : Keyboard Navigation
Learning Objective : 01-02 Define economics and the features of the economic way of thinking.
Difficulty : Easy
Topic : 01-08 Microeconomics



5) If economic theories are solidly based on relevant facts, then there can be no question as
to the character of appropriate economic policy.

⊚ true
⊚ false

Question Details
Accessibility : Keyboard Navigation
Difficulty : Easy
Learning Objective : 01-03 Describe the role of economic theory in economics.
Topic : 01-09 Macroeconomics



6) The fact that economic generalizations are abstract renders them impractical and useless.

⊚ true
⊚ false

Question Details
Accessibility : Keyboard Navigation
Difficulty : Easy
Learning Objective : 01-03 Describe the role of economic theory in economics.
Topic : 01-09 Macroeconomics



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

⊚ true
⊚ false

Question Details
Accessibility : Keyboard Navigation
Difficulty : Easy
Learning Objective : 01-04 Distinguish microeconomics from macroeconomics and positive economics from
Topic : 01-12 Limited Income




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,8) Positive statements are expressions of value judgments.

⊚ true
⊚ false

Question Details
Accessibility : Keyboard Navigation
Difficulty : Easy
Learning Objective : 01-04 Distinguish microeconomics from macroeconomics and positive economics from
Topic : 01-13 Unlimited Wants



9) Normative statements are expressions of facts.

⊚ true
⊚ false

Question Details
Accessibility : Keyboard Navigation
Difficulty : Easy
Learning Objective : 01-04 Distinguish microeconomics from macroeconomics and positive economics from
Topic : 01-13 Unlimited Wants



10) Individuals face an economic problem but society does not.

⊚ true
⊚ false

Question Details
Accessibility : Keyboard Navigation
Difficulty : Easy
Topic : 01-12 Limited Income
Learning Objective : 01-06 List the categories of scarce resources and explain the economic problem.



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

⊚ true
⊚ false




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, Question Details
Accessibility : Keyboard Navigation
Difficulty : Easy
Learning Objective : 01-06 List the categories of scarce resources and explain the economic problem.
Topic : 01-18 Income Changes



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

⊚ true
⊚ false

Question Details
Accessibility : Keyboard Navigation
Difficulty : Easy
Learning Objective : 01-06 List the categories of scarce resources and explain the economic problem.
Topic : 01-19 Society's Economic Problem



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

⊚ true
⊚ false

Question Details
Accessibility : Keyboard Navigation
Difficulty : Easy
Learning Objective : 01-06 List the categories of scarce resources and explain the economic problem.
Topic : 01-18 Income Changes



14) The production possibilities curve shows various combinations of two products which an
economy can produce when achieving full employment and productive efficiency.

⊚ true
⊚ false

Question Details
Accessibility : Keyboard Navigation
Difficulty : Easy
Learning Objective : 01-07 Apply production possibilities analysis.
Topic : 01-23 Labour




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