TEST BANK
Economics Today: The Macro View, 20th edition
by Roger LeRoy Miller
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ST
SO
LU
TI
O
N
, TABLE OF CONTENT
PART 1: INTRODUCTION
The Nature of Economics
Scarcity and the World of Trade-Offs
Demand and supply
Extensions of Demand and Supply Analysis
Public Spending and Public Choice
Funding the Public Sector
TE
PART 2: INTRODUCTION TO MACROECONOMICS AND ECONOMIC GROWTH
The Macroeconomy: Unemployment, Inflation, and Deflation
Measuring the Economy's Performance
ST
Global Economic Growth and Development
PART 3: REAL GDP DETERMINATION AND FISCAL POLICY
Real GDP and the Price Level in the Long Run
Classical and Keynesian Macro Analyses
SO
Consumption, Real GDP, and the Multiplier
Fiscal Policy
Deficit Spending and the Public Debt
PART 4: MONEY, STABILIZATION, AND GROWTH
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Money, Banking, and Central Banking
Domestic and International Dimensions of Monetary Policy
Stabilization in an Integrated World Economy
Policies and Prospects for Global Economic Growth
TI
PART 8: GLOBAL ECONOMICS
Comparative Advantage and the Open Economy
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Exchange Rates and the Balance of Payments
N
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Economics Today, 20e (Miller)
Chapter 1 The Nature of Economics
1.1 The Power of Economic Analysis
All Chapters Included
1) The economic way of thinking will help you
A) make decisions in financing your home.
B) analyze solutions to economic problems.
All Answers Included
TE
C) make better decisions concerning your education.
D) all of these
Answer: D
Diff: 1
Topic: 1.1 The Power of Economic Analysis
Learning Outcome: Micro-1: Identify the basic principles of economics and explain how to
ST
think like an economist
AACSB: Analytical thinking
2) Economic analysis is used
A) only by instructors and students in economics to understand the world.
B) only by business people to raise profits.
SO
C) only by policy makers to make policy decisions.
D) in decision making.
Answer: D
Diff: 1
Topic: 1.1 The Power of Economic Analysis
Learning Outcome: Micro-1: Identify the basic principles of economics and explain how to
LU
think like an economist
AACSB: Analytical thinking
3) Economic analysis is a tool that
A) aids decision making.
B) helps us understand why people make mistakes.
TI
C) helps us forgive selfish people.
D) makes everyone rich.
Answer: A
Diff: 1
O
Topic: 1.1 The Power of Economic Analysis
Learning Outcome: Micro-1: Identify the basic principles of economics and explain how to
think like an economist
N
AACSB: Analytical thinking
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, kjhgfds
4) Economics is best defined as the
A) study of how people make choices to satisfy their wants.
B) study of individual self-interests.
C) study of why people do not react to incentives.
D) process by which goods are sold in free markets.
Answer: A
Diff: 1
Topic: 1.1 The Power of Economic Analysis
TE
Learning Outcome: Micro-1: Identify the basic principles of economics and explain how to
think like an economist
AACSB: Analytical thinking
5) Economics can be described as the study of how people use resources to satisfy
wants.
ST
A) unlimited; unlimited
B) unlimited; limited
C) limited; unlimited
D) limited; limited
Answer: C
Diff: 1
SO
Topic: 1.1 The Power of Economic Analysis
Learning Outcome: Micro-1: Identify the basic principles of economics and explain how to
think like an economist
AACSB: Analytical thinking
6) Which statement most accurately describes economics?
LU
A) Economics is the study of how people make money.
B) Economics is the study of how people make choices to satisfy their wants.
C) Economics is the study of social values a society should choose.
D) Economics is the study of how to eliminate scarcity.
Answer: B
Diff: 1
TI
Topic: 1.1 The Power of Economic Analysis
Learning Outcome: Micro-1: Identify the basic principles of economics and explain how to
think like an economist
AACSB: Analytical thinking
O
N
ijhgfds
Economics Today: The Macro View, 20th edition
by Roger LeRoy Miller
TE
ST
SO
LU
TI
O
N
, TABLE OF CONTENT
PART 1: INTRODUCTION
The Nature of Economics
Scarcity and the World of Trade-Offs
Demand and supply
Extensions of Demand and Supply Analysis
Public Spending and Public Choice
Funding the Public Sector
TE
PART 2: INTRODUCTION TO MACROECONOMICS AND ECONOMIC GROWTH
The Macroeconomy: Unemployment, Inflation, and Deflation
Measuring the Economy's Performance
ST
Global Economic Growth and Development
PART 3: REAL GDP DETERMINATION AND FISCAL POLICY
Real GDP and the Price Level in the Long Run
Classical and Keynesian Macro Analyses
SO
Consumption, Real GDP, and the Multiplier
Fiscal Policy
Deficit Spending and the Public Debt
PART 4: MONEY, STABILIZATION, AND GROWTH
LU
Money, Banking, and Central Banking
Domestic and International Dimensions of Monetary Policy
Stabilization in an Integrated World Economy
Policies and Prospects for Global Economic Growth
TI
PART 8: GLOBAL ECONOMICS
Comparative Advantage and the Open Economy
O
Exchange Rates and the Balance of Payments
N
, kjhgfds
Economics Today, 20e (Miller)
Chapter 1 The Nature of Economics
1.1 The Power of Economic Analysis
All Chapters Included
1) The economic way of thinking will help you
A) make decisions in financing your home.
B) analyze solutions to economic problems.
All Answers Included
TE
C) make better decisions concerning your education.
D) all of these
Answer: D
Diff: 1
Topic: 1.1 The Power of Economic Analysis
Learning Outcome: Micro-1: Identify the basic principles of economics and explain how to
ST
think like an economist
AACSB: Analytical thinking
2) Economic analysis is used
A) only by instructors and students in economics to understand the world.
B) only by business people to raise profits.
SO
C) only by policy makers to make policy decisions.
D) in decision making.
Answer: D
Diff: 1
Topic: 1.1 The Power of Economic Analysis
Learning Outcome: Micro-1: Identify the basic principles of economics and explain how to
LU
think like an economist
AACSB: Analytical thinking
3) Economic analysis is a tool that
A) aids decision making.
B) helps us understand why people make mistakes.
TI
C) helps us forgive selfish people.
D) makes everyone rich.
Answer: A
Diff: 1
O
Topic: 1.1 The Power of Economic Analysis
Learning Outcome: Micro-1: Identify the basic principles of economics and explain how to
think like an economist
N
AACSB: Analytical thinking
ijhgfds
, kjhgfds
4) Economics is best defined as the
A) study of how people make choices to satisfy their wants.
B) study of individual self-interests.
C) study of why people do not react to incentives.
D) process by which goods are sold in free markets.
Answer: A
Diff: 1
Topic: 1.1 The Power of Economic Analysis
TE
Learning Outcome: Micro-1: Identify the basic principles of economics and explain how to
think like an economist
AACSB: Analytical thinking
5) Economics can be described as the study of how people use resources to satisfy
wants.
ST
A) unlimited; unlimited
B) unlimited; limited
C) limited; unlimited
D) limited; limited
Answer: C
Diff: 1
SO
Topic: 1.1 The Power of Economic Analysis
Learning Outcome: Micro-1: Identify the basic principles of economics and explain how to
think like an economist
AACSB: Analytical thinking
6) Which statement most accurately describes economics?
LU
A) Economics is the study of how people make money.
B) Economics is the study of how people make choices to satisfy their wants.
C) Economics is the study of social values a society should choose.
D) Economics is the study of how to eliminate scarcity.
Answer: B
Diff: 1
TI
Topic: 1.1 The Power of Economic Analysis
Learning Outcome: Micro-1: Identify the basic principles of economics and explain how to
think like an economist
AACSB: Analytical thinking
O
N
ijhgfds
