NETA Assessment: Test Bank to accompany Principles of Macroeconomics, Sixth Canadian Edition

NETAASSESSMENT f




Test Bank ff




to accompany
ff




Test Bank prepared by
ff ff ff



f f Constantin Colonescu ff



ff MacEwan University ff

,NETA Assessment: Test Bank to accompany Principles of Macroeconomics,
ff ff ff ff ff ff ff ff




Sixth Canadian Edition ff ff




By N. Gregory Mankiw / Ronald D. Kneebone / Kenneth J. McKenzie
ff ff ff ff ff ff ff ff ff ff ff




Test Bank prepared by Constantin Colonescu, MacEwan University
ff ff ff ff ff ff ff




NETA copy editor: Frances Robinson
ff ff ff ff




Available on Instructor’s Resource CD ISBN . 0-17-655440-8
ff ff ff ff ff ff ff




COPYRIGHT ©2014 by Nelson Education Ltd. Nelson is a registered trademark used herein under licence. All
ff ff ff ff ff ff ff ff ff ff ff ff ff ff ff



frights reserved.
f ff




For more information contact Nelson, 1120 Birchmount Road, Toronto, Ontario M1K 5G4. Or you can visit our
ff ff ff ff ff ff ff ff ff f f ff ff ff ff ff ff



f Internet site at www.nelson.com.
f ff ff ff




ALL RIGHTS RESERVED. No part of this work covered by the copyright hereon may be reproduced or used in any
ff ff ff ff ff ff ff ff ff ff ff ff ff ff ff ff ff ff f f



form or by any means—graphic, electronic, or mechanical, including photocopying, recording, taping, web
ff ff ff ff ff ff ff ff ff ff ff ff ff



f distribution or information storage and retrieval systems—without the written permission of the publisher
f ff ff ff ff ff ff ff ff ff ff ff ff




ii

, TABLE OF CONTENTS ff ff




Part 1 Introduction
ff ff



Chapter 1 Ten Principles of Economics
ff ff ff ff ff 1-1
Chapter 2 Thinking Like an Economist
ff ff ff ff ff 2-1
Chapter 3 Interdependence and the Gains from Trade
ff ff ff ff ff ff ff 3-1

Part 2 Supply And Demand: How Markets Work
ff ff ff ff ff ff ff



Chapter 4 The Market Forces of Supply and Demand
ff ff ff ff ff ff ff ff 4-1

Part 3 The Data of Macroeconomics
ff ff ff ff ff



Chapter 5 Measuring a Nation’s Income
ff ff ff ff ff 5-1
Chapter 6 Measuring the Cost of Living
ff ff ff ff ff ff 6-1

Part 4 The Real Economy in the Long Run
ff ff ff ff ff ff ff ff



Chapter 7 Production and Growth
ff ff ff ff 7-1
Chapter 8 Saving, Investment, and the Financial System
ff ff ff ff ff ff ff 8-1
Chapter 9 Unemployment and Its Natural Rate
ff ff ff ff ff ff 9-1

Part 5 Money And Prices in the Long Run
ff ff ff ff ff ff ff ff



Chapter 10 The Monetary System
ff ff ff ff 10-1
Chapter 11 Money Growth and Inflation
ff ff ff ff ff 11-1

Part 6 The Macroeconomics of Open Economies
ff ff ff ff ff ff



Chapter 12 Open-Economy Macroeconomics: Basic Concepts
ff ff ff ff ff 12-1
Chapter 13 A Macroeconomic Theory of the Small Open Economy
ff ff ff ff ff ff ff ff ff 13-1

Part 7 Short-Run Economic Fluctuations
ff ff ff ff



Chapter 14 Aggregate Demand and Aggregate Supply
ff ff ff ff ff ff 14-1
Chapter 15 The Influence of Monetary and Fiscal Policy on Aggregate Demand
ff ff ff ff ff ff ff ff ff ff ff 15-1
Chapter 16 The Short-Run Tradeoff between Inflation and Unemployment
ff ff ff ff ff ff ff ff 16-1

Part 8 Final Thoughts
ff ff ff



Chapter 17 Five Debates over Macroeconomic Policy
ff ff ff ff ff ff 17-1




iii

, PREFACE




In most post-secondary courses, a large percentage of student assessment is based on
ff ff ff ff ff ff ff ff ff ff ff ff



multiple- choice testing. Many instructors use multiple-choice reluctantly, believing that it is
ff f f ff ff ff ff ff ff ff ff ff ff



a methodology best used for testing what a student remembers rather than what she or he
ff f f ff ff ff ff ff ff ff ff ff ff ff ff ff ff



has learned.
ff f f




Nelson Education Ltd. understands that a good quality multiple-choice test bank can provide
ff ff ff ff ff ff ff ff ff ff ff ff



fthe means to measure higher-level thinking skills as well as recall. Recognizing the
f ff ff ff ff ff ff ff ff ff ff ff ff



fimportance of multiple-choice testing in today’s classroom, we have created NETA—the
f ff ff ff ff ff ff ff ff ff ff



fNelson Education Teaching Advantage program—to ensure the value of our high quality test
f ff ff ff ff ff ff ff ff ff ff ff ff



fbanks. f




The NETA program was created in partnership with David DiBattista, a 3M National Teaching
ff ff ff ff ff ff ff ff ff ff ff ff ff



f Fellow, professor of psychology at Brock University, and researcher in the area of multiple-
f ff ff ff ff ff ff ff ff ff ff ff ff ff



f choice testing. NETA ensures that subject-matter experts who author test banks have had
f ff ff ff ff ff ff ff ff ff ff ff ff



f training in two areas: avoiding common errors in test construction, and developing multiple-
f ff ff ff ff ff ff ff ff ff ff ff ff



fchoice test questions that “get beyond remembering” to assess higher-level thinking.
f ff ff ff ff ff ff ff ff ff ff




All NETA test banks include David DiBattista’s guide for instructors, “Multiple Choice Tests:
ff ff ff ff ff ff ff ff ff ff ff ff



f Getting Beyond Remembering.” This guide has been designed to assist you in using Nelson
f ff ff ff ff ff ff ff ff ff ff ff ff ff



f test banks to achieve your desired outcomes in your course.
f ff ff ff ff ff ff ff ff ff




The Test Bank for Principles of Macroeconomics, Sixth Canadian Edition has been revised for
ff ff ff ff ff ff ff ff ff ff ff ff ff



Canadian students by Constantin Colonescu, MacEwan University. The multiple-choice
f f ff ff ff ff ff ff ff ff



f questions were written and edited to conform to NETA guidelines, which emphasize the
f ff ff ff ff ff ff ff ff ff ff ff ff



f development of higher-order thinking and the effective construction of questions. NETA
f ff ff ff ff ff ff ff ff ff ff



fprinciples of question construction help eliminate ambiguity, arguable answers, guesswork,
f ff ff ff ff ff ff ff ff ff



f and unconscious cues to test-savvy students, resulting in a test that accurately reflects
f ff ff ff ff ff ff ff ff ff ff ff ff



student understanding. The Test Bank offers over 3510 questions, including about 2822
ff f f ff ff ff ff ff ff ff ff ff ff



multiple choice, about 362 true/false, about 162 problems, and about 164 short answer
ff f f ff ff ff ff ff ff ff ff ff ff ff



questions.
ff




In addition to providing a variety of questions related to each chapter objective, this test bank
ff ff ff ff ff ff ff ff ff ff ff ff ff ff ff



f also employs a series of tags that can help design effective, balanced tests by the measure of
f ff ff ff ff ff ff ff ff ff ff ff ff ff ff ff ff



f course outcomes. All of the tags are included with the question in the test bank. These tags
f ff ff ff ff ff ff ff ff ff ff ff ff ff ff ff ff



f include:
f



 ANS: The correct answer. (Suggested answers are provided for the short answer questions.)
ff ff ff ff ff ff ff ff ff ff ff ff



 PTS: The number of points an instructor can assign for each question. The default is 1
ff ff ff ff ff ff ff ff ff ff ff ff ff ff ff




4