NETAASSESSMENTn
TestBank n
to accompany
n
Test Bankprepared by
n n n
Constantin n
Colonescu MacEwan
n n
University n
,NETA Assessment: Test Bankto accompany Principles of
n n n n n n n
Macroeconomics,
n
Sixth Canadian Edition n n
By N. Gregory Mankiw / Ronald D. Kneebone / Kenneth J. McKenzie
n n n n n n n n n n n
Test Bank prepared by Constantin Colonescu, MacEwan University
n n n n n n n
NETA copy editor: Frances Robinson
n n n n
Available on Instructor’s Resource CD ISBN . 0-17-655440-8
n n n n n n n
COPYRIGHT ©2014byNelsonEducationLtd. Nelsonis aregisteredtrademark used hereinunder licence. All
n n n n n n n n n n n n n n n
nrightsreserved. n
For moreinformation contact Nelson,1120 Birchmount Road,Toronto,Ontario M1K 5G4.Or youcanvisitour
n n n n n n n n n n n n n n n n
nInternetsiteatwww.nelson.com. n n n
ALL RIGHTSRESERVED. Nopart ofthis workcoveredbythecopyrighthereon maybe reproducedor used in any
n n n n n n n n n n n n n n n n n n n
formorbyanymeans—graphic,electronic,ormechanical,includingphotocopying,recording,taping,web
n n n n n n n n n n n n n
n distributionorinformation storageand retrievalsystems—withoutthewrittenpermissionofthepublisher
n n n n n n n n n n n n
ii
, TABLE OF CONTENTS n n
Part 1 Introduction
n n
Chapter 1 Ten Principles of Economics
n n n n n 1-1
Chapter 2 Thinking Like an Economist
n n n n n 2-1
Chapter 3 Interdependence and the Gains from Trade
n n n n n n n 3-1
Part 2 SupplyAnd Demand: How Markets Work
n n n n n n n
Chapter 4 The Market Forces of Supplyand Demand
n n n n n n n n 4-1
Part 3 The Data of Macroeconomics
n n n n n
Chapter 5 Measuring a Nation’s Income
n n n n n 5-1
Chapter 6 Measuring the Cost of Living
n n n n n n 6-1
Part 4 The Real Economy in the Long Run
n n n n n n n n
Chapter 7 Production and Growth
n n n n 7-1
Chapter 8 Saving, Investment, and the Financial System
n n n n n n n 8-1
Chapter 9 Unemployment and Its Natural Rate
n n n n n n 9-1
Part 5 Money And Prices in the Long Run
n n n n n n n n
Chapter 10 The Monetary System
n n n n 10-1
Chapter 11 MoneyGrowth and Inflation
n n n n n 11-1
Part 6 The Macroeconomics of Open Economies
n n n n n n
Chapter 12 Open-EconomyMacroeconomics: Basic Concepts
n n n n n 12-1
Chapter 13 A Macroeconomic Theoryof the Small Open Economy
n n n n n n n n n 13-1
Part 7 Short-Run Economic Fluctuations
n n n n
Chapter 14 Aggregate Demand and Aggregate Supply
n n n n n n 14-1
Chapter 15 The Influence of Monetary and Fiscal Policyon Aggregate Demand
n n n n n n n n n n n 15-1
Chapter 16 The Short-Run Tradeoff between Inflation and Unemployment
n n n n n n n n 16-1
Part 8 Final Thoughts
n n n
Chapter 17 Five Debates over Macroeconomic Policy
n n n n n n 17-1
iii
, PREFACE
In most post-secondary courses, a large percentage of student assessment is based on
n n n n n n n n n n n n
multiple- choice testing. Manyinstructors use multiple-choice reluctantly, believing that it is
n n n n n n n n n n n n
a methodologybest used for testing what a student remembers rather than what she or he
n n n n n n n n n n n n n n n n
has learned.
n n
Nelson Education Ltd. understands that a good qualitymultiple-choice test bank can
n n n n n n n n n n n
provide the means to measure higher-level thinking skills as well as recall. Recognizing
n n n n n n n n n n n n n
the importance of multiple-choice testing in today’s classroom, we have created NETA—
n n n n n n n n n n n n
the Nelson Education Teaching Advantage program—to ensure the value of our high quality
n n n n n n n n n n n n
test banks.
n n
The NETA program was created in partnership with David DiBattista, a 3M National Teaching
n n n n n n n n n n n n n
nFellow, professor of psychologyat Brock University, and researcher in the area of multiple-
n n n n n n n n n n n n n
nchoice testing. NETA ensures that subject-matter experts who author test banks have had
n n n n n n n n n n n n
ntraining in two areas: avoiding common errors in test construction, and developing multiple-
n n n n n n n n n n n n
nchoice test questions that “get beyond remembering” to assess higher-level thinking.
n n n n n n n n n n
All NETA test banks include David DiBattista’s guide for instructors, “Multiple Choice Tests:
n n n n n n n n n n n n
nGetting Beyond Remembering.” This guide has been designed to assist you in using Nelson
n n n n n n n n n n n n n
ntest banks to achieve your desired outcomes in your course.
n n n n n n n n n
The Test Bank for Principles of Macroeconomics, Sixth Canadian Edition has been revised for
n n n n n n n n n n n n n
nCanadian students byConstantin Colonescu, MacEwan University. The multiple-choice n n n n n n n n
nquestions were written and edited to conform to NETA guidelines, which emphasize the n n n n n n n n n n n n
ndevelopment of higher-order thinking and the effective construction of questions. NETA n n n n n n n n n n
nprinciples of question construction help eliminate ambiguity, arguable answers, n n n n n n n n
guesswork, and unconscious cues to test-savvystudents, resulting in a test that
n n n n n n n n n n n n
accuratelyreflects student understanding. The Test Bank offers over 3510 questions,
n n n n n n n n n n n
including about 2822 multiple choice, about 362 true/false, about 162 problems, and about
n n n n n n n n n n n n n
164 short answer questions.
n n n n
In addition to providing a varietyof questions related to each chapter objective, this test bank
n n n n n n n n n n n n n n n
nalso employs a series of tags that can help design effective, balanced tests bythe measure of
n n n n n n n n n n n n n n n n
ncourse outcomes. All of the tags are included with the question in the test bank. These tags
n n n n n n n n n n n n n n n n
ninclude:
• ANS: The correct answer. (Suggested answers are provided for the short answer
n n n n n n n n n n n
questions.) n
4
TestBank n
to accompany
n
Test Bankprepared by
n n n
Constantin n
Colonescu MacEwan
n n
University n
,NETA Assessment: Test Bankto accompany Principles of
n n n n n n n
Macroeconomics,
n
Sixth Canadian Edition n n
By N. Gregory Mankiw / Ronald D. Kneebone / Kenneth J. McKenzie
n n n n n n n n n n n
Test Bank prepared by Constantin Colonescu, MacEwan University
n n n n n n n
NETA copy editor: Frances Robinson
n n n n
Available on Instructor’s Resource CD ISBN . 0-17-655440-8
n n n n n n n
COPYRIGHT ©2014byNelsonEducationLtd. Nelsonis aregisteredtrademark used hereinunder licence. All
n n n n n n n n n n n n n n n
nrightsreserved. n
For moreinformation contact Nelson,1120 Birchmount Road,Toronto,Ontario M1K 5G4.Or youcanvisitour
n n n n n n n n n n n n n n n n
nInternetsiteatwww.nelson.com. n n n
ALL RIGHTSRESERVED. Nopart ofthis workcoveredbythecopyrighthereon maybe reproducedor used in any
n n n n n n n n n n n n n n n n n n n
formorbyanymeans—graphic,electronic,ormechanical,includingphotocopying,recording,taping,web
n n n n n n n n n n n n n
n distributionorinformation storageand retrievalsystems—withoutthewrittenpermissionofthepublisher
n n n n n n n n n n n n
ii
, TABLE OF CONTENTS n n
Part 1 Introduction
n n
Chapter 1 Ten Principles of Economics
n n n n n 1-1
Chapter 2 Thinking Like an Economist
n n n n n 2-1
Chapter 3 Interdependence and the Gains from Trade
n n n n n n n 3-1
Part 2 SupplyAnd Demand: How Markets Work
n n n n n n n
Chapter 4 The Market Forces of Supplyand Demand
n n n n n n n n 4-1
Part 3 The Data of Macroeconomics
n n n n n
Chapter 5 Measuring a Nation’s Income
n n n n n 5-1
Chapter 6 Measuring the Cost of Living
n n n n n n 6-1
Part 4 The Real Economy in the Long Run
n n n n n n n n
Chapter 7 Production and Growth
n n n n 7-1
Chapter 8 Saving, Investment, and the Financial System
n n n n n n n 8-1
Chapter 9 Unemployment and Its Natural Rate
n n n n n n 9-1
Part 5 Money And Prices in the Long Run
n n n n n n n n
Chapter 10 The Monetary System
n n n n 10-1
Chapter 11 MoneyGrowth and Inflation
n n n n n 11-1
Part 6 The Macroeconomics of Open Economies
n n n n n n
Chapter 12 Open-EconomyMacroeconomics: Basic Concepts
n n n n n 12-1
Chapter 13 A Macroeconomic Theoryof the Small Open Economy
n n n n n n n n n 13-1
Part 7 Short-Run Economic Fluctuations
n n n n
Chapter 14 Aggregate Demand and Aggregate Supply
n n n n n n 14-1
Chapter 15 The Influence of Monetary and Fiscal Policyon Aggregate Demand
n n n n n n n n n n n 15-1
Chapter 16 The Short-Run Tradeoff between Inflation and Unemployment
n n n n n n n n 16-1
Part 8 Final Thoughts
n n n
Chapter 17 Five Debates over Macroeconomic Policy
n n n n n n 17-1
iii
, PREFACE
In most post-secondary courses, a large percentage of student assessment is based on
n n n n n n n n n n n n
multiple- choice testing. Manyinstructors use multiple-choice reluctantly, believing that it is
n n n n n n n n n n n n
a methodologybest used for testing what a student remembers rather than what she or he
n n n n n n n n n n n n n n n n
has learned.
n n
Nelson Education Ltd. understands that a good qualitymultiple-choice test bank can
n n n n n n n n n n n
provide the means to measure higher-level thinking skills as well as recall. Recognizing
n n n n n n n n n n n n n
the importance of multiple-choice testing in today’s classroom, we have created NETA—
n n n n n n n n n n n n
the Nelson Education Teaching Advantage program—to ensure the value of our high quality
n n n n n n n n n n n n
test banks.
n n
The NETA program was created in partnership with David DiBattista, a 3M National Teaching
n n n n n n n n n n n n n
nFellow, professor of psychologyat Brock University, and researcher in the area of multiple-
n n n n n n n n n n n n n
nchoice testing. NETA ensures that subject-matter experts who author test banks have had
n n n n n n n n n n n n
ntraining in two areas: avoiding common errors in test construction, and developing multiple-
n n n n n n n n n n n n
nchoice test questions that “get beyond remembering” to assess higher-level thinking.
n n n n n n n n n n
All NETA test banks include David DiBattista’s guide for instructors, “Multiple Choice Tests:
n n n n n n n n n n n n
nGetting Beyond Remembering.” This guide has been designed to assist you in using Nelson
n n n n n n n n n n n n n
ntest banks to achieve your desired outcomes in your course.
n n n n n n n n n
The Test Bank for Principles of Macroeconomics, Sixth Canadian Edition has been revised for
n n n n n n n n n n n n n
nCanadian students byConstantin Colonescu, MacEwan University. The multiple-choice n n n n n n n n
nquestions were written and edited to conform to NETA guidelines, which emphasize the n n n n n n n n n n n n
ndevelopment of higher-order thinking and the effective construction of questions. NETA n n n n n n n n n n
nprinciples of question construction help eliminate ambiguity, arguable answers, n n n n n n n n
guesswork, and unconscious cues to test-savvystudents, resulting in a test that
n n n n n n n n n n n n
accuratelyreflects student understanding. The Test Bank offers over 3510 questions,
n n n n n n n n n n n
including about 2822 multiple choice, about 362 true/false, about 162 problems, and about
n n n n n n n n n n n n n
164 short answer questions.
n n n n
In addition to providing a varietyof questions related to each chapter objective, this test bank
n n n n n n n n n n n n n n n
nalso employs a series of tags that can help design effective, balanced tests bythe measure of
n n n n n n n n n n n n n n n n
ncourse outcomes. All of the tags are included with the question in the test bank. These tags
n n n n n n n n n n n n n n n n
ninclude:
• ANS: The correct answer. (Suggested answers are provided for the short answer
n n n n n n n n n n n
questions.) n
4
