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
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
