Complete Test Bank Principles of MACROeconomics 9th Edition Mankiw Questions & Answers with rationales (Chapter 1-23)

,DOWNLOAD48 THE48Test 48Bank48for 48Brief48Principles48 of48 Macroeconomics 489th 48Ed
TRUE/FALSE ition 48Mankiw
1 :48Economists48try48to48address48 their48subject 48with4 8a48scientist’s48objectivity.
A48:48true
B48:48false

Correct48Answer48:48A

2 :48Economists48devise48theories,48collect48data,48and48then48analyze48these48data48in48an48attem
pt48to48verify48or48refute48 their48theories.
A48:48true
B48:48false

Correct48Answer48:48A

3 :48The48scientific48method48is48the48dispassionate48development48and48testing48of48 theories48
about48how48the48world48 works.
A48:48true
B48:48false

Correct48Answer48:48A

4 :48The48scientific48method48can4 8be48applied48to48 the48study48of4 8economics.
A48:48true
B48:48false

Correct48Answer48:48A

5 :48While48the48scientific48method48is48applicable48to48studying48 natural48sciences,48it48is48not48a
pplicable48to48studying48a48nation’s48economy.
A48:48true
B48:48false

Correct48Answer48:48B

6 :48For48economists,48conducting48experiments48is48often48difficult4 8and4 8sometimes48impossible.
A48:48true
B48:48false

Correct48Answer48:48A

7 :48Economists48usually48 have48 to48make4 8do48with4 8whatever48data48 the48 world 48 happens4 8to48give48them
.
A48:48true
B48:48false

Correct48Answer48:48A

8 :48It48is48difficult48for48economists48 to48make48observations48and48develop48 theories,48but48it4
8is48easy48for48economists48to48run48experiments4 8to48generate48data48 to48 test48 their48theorie

s.
A48:48true
B48:48false
mynursytest.store 148/4
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rre HeEr4 8:48TBes t 48Bank 48for 48Brief 48Principles 48of 48Macroeconomics 489th48Ed
sw
ition 48Mankiw
9 :48Since48economists48cannot48use48natural48experiments48offered48by48 history,48they48must48us
e48carefully48constructed48 laboratory4 8experiments48instead.
A48:48true
B48:48false

Correct48Answer48:48B

10 :48Historical48episodes48are48not48valuable4 8to48economists.
A48:48true
B48:48false

Correct48Answer48:48B

11 :48Historical48episodes48allow48economists48to48illustrate48and4 8evaluate48current4 8economic48theories.
A48:48true
B48:48false

Correct48Answer48:48A

12 :48Good48assumptions48simplify48a4 8problem48without48substantially48affecting48 the48answer.
A48:48true
B48:48false

Correct48Answer48:48A

13 :48Assumptions48can48simplify48the48complex48 world48and48 make48it48easier48 to48 understand.
A48:48true
B48:48false

Correct48Answer48:48A

14 :48Economists48often48find48it48worthwhile48 to48make48assumptions48 that48do48 not48 necessaril
y48describe48the48real48world.
A48:48true
B48:48false

Correct48Answer48:48A

15 :48Economists48use48one48standard48set4 8of48assumptions4 8to48answer48all 48economic48questions.
A48:48true
B48:48false

Correct48Answer48:48B

16 :48Economic48models48are48most48often48composed48of48diagrams48and48equations.
A48:48true
B48:48false

Correct48Answer48:48A

1748:48Economic48models48omit48many48details4 8to48allow48 us48 to48see48 what4 8is48truly48important.
mynursytest.store 248/4
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e48D48THE48Test48Bank 48for48Brief 48Principles 48 of48Macroeconomics489th
B48:48false Edition 48Mankiw

Correct48Answer48:4
8A



18 :48Economic48models48can48help48us48understand48 reality48only48 when48they48include48all48de
tails48of48the48economy.
A48:48true
B48:48false

Correct48Answer48:48B

19 :48An48economic48model48can48accurately48explain48how48the48economy48is48organized48be
cause48it48is48designed48to48include,48to48the4 8extent4 8possible,48all4 8features48of4 8the48 real48 w
orld.
A48:48true
B48:48false

Correct48Answer48:48B

20 :48All48scientific48models,48including48economic48models,48simplify48reality48in48order48 to48im
prove48our48understanding48of48it.
A48:48true
B48:48false

Correct48Answer48:48A

21 :48The48circular-
flow48diagram48explains,48in48general48 terms,48 how48 the48economy48is48organized48and48 how48p
articipants48in48the48economy48interact48 with48one48another.
A48:48true
B48:48false

Correct48Answer48:48A

22 :48A48circular-flow48diagram48is48a48 visual48 model48of48 the48economy.
A48:48true
B48:48false

Correct48Answer48:48A

23 :48The48circular48flow48model48is48not48 used48anymore48because48it48fails48 to48perfectly48replicat
e48real48world48situations.
A48:48true
B48:48false

Correct48Answer48:48B

24 :48In48the48circular-flow48diagram,4 8 households48and48firms48are4 8the48decision48 makers.
A48:48true
B48:48false
2548:48In48the48circular-
flow48diagram,48firms48produce48goods48mynursytest.store
and48services48 using4 8the48 factors 48of 348/4
843