Principles of Macroeconomics (2nd Edition) – OpenStax, Greenlaw & Shapiro, 9781506699882 – Test Bank

TEST BANK

PRINCIPLES OF MACROECONOMICS
2ND EDITION

CHAPTER NO. 01: WELCOME TO ECONOMICS

MULTIPLE CHOICE QUESTION & ANSWERS

1. In countries like _____________ the command economy predominates.


A. China and Vietnam
B. Cuba and North Korea
C. South Africa and Kenya
D. Germany and France


Answer: B


Reference:


Explanation:


Type: Multiple Choice Difficulty: Medium Category: Remember


2. In which of the following countries will the national government have the
greatest influence with respect to the nation's economy?


A. China
B. Cuba
C. Canada
D. Chile


Answer: B


Reference:

,Explanation:


Type: Multiple Choice Difficulty: Medium Category: Analyze


3. In a command economy, the __________ either makes most economic decisions
itself or at least strongly influences how the decisions are made.


A. government
B. market
C. firm
D. business sector


Answer: A


Reference:


Explanation:


Type: Multiple Choice Difficulty: Easy Category: Understand


4. Because of their relatively small national economies, which of the following is
most likely considered to be the most important factor for Belgium, Korea, and
Canada to take full advantage of specialization?


A. division of labour
B. international trade
C. economies of scale
D. command economy


Answer: B


Reference:


Explanation:

,Type: Multiple Choice Difficulty: Medium Category: Analyze


5. In a discussion of economics, which of the following would exert the most
influence on an individual firm's decision to hire workers?


A. wage levels
B. the macroeconomy
C. the firm's income
D. household income


Answer: B


Reference:


Explanation:


Type: Multiple Choice Difficulty: Easy Category: Analyze


6. In a _______________________, most economic decisions about what to produce,
how to produce it, and for whom to produce it are made by buyers and sellers.


A. market-oriented economy
B. macroeconomy
C. microeconomy
D. command economy


Answer: A


Reference:


Explanation:


Type: Multiple Choice Difficulty: Easy Category: Remember

, 7. Which of the following best denotes the reason for the existence of substantial
black markets?


A. a market-oriented economy
B. a command economy
C. government laws and rules
D. the microeconomy


Answer: B


Reference:


Explanation:


Type: Multiple Choice Difficulty: Easy Category: Remember


8. Which of the following is generally accepted as a valid criticism of the
production of useful goods and services?


A. government involvement
B. the black market
C. environmental pollution
D. economic freedom


Answer: C


Reference:


Explanation:


Type: Multiple Choice Difficulty: Medium Category: Evaluate