NETAASSESSMENT h
Test Bank h
to accompany
h
Test Bank prepared by
h h h
h Constantin Colonescuh
MacEwan University
h h
,NETA Assessment: Test Bank to accompany Principles of Macroeconomics,
h h h h h h h h
Sixth Canadian Edition
h h
By N. Gregory Mankiw / Ronald D. Kneebone / Kenneth J. McKenzie
h h h h h h h h h h h
Test Bank prepared by Constantin Colonescu, MacEwan University
h h h h h h h
NETA copy editor: Frances Robinson
h h h h
Available on Instructor’s Resource CD ISBN . 0-17-655440-8
h h h h h h h
COPYRIGHT ©2014 by Nelson Education Ltd. Nelson is a registered trademark used herein under licence. All
h h h h h h h h h h h h h h h
hrights reserved.
h
For more information contact Nelson, 1120 Birchmount Road, Toronto, Ontario M1K 5G4. Or you can visit our
h h h h h h h h h h h h h h h h
hInternet site at www.nelson.com.
h h h
ALL RIGHTS RESERVED. No part of this work covered by the copyright hereon may be reproduced or used in
h h h h h h h h h h h h h h h h h h
hany form or by any means—graphic, electronic, or mechanical, including photocopying, recording, taping, web
h h h h h h h h h h h h h
hdistribution or information storage and retrieval systems—without the written permission of the publisher
h h h h h h h h h h h h
ii
, TABLE OF CONTENTS h h
Part 1 Introduction
h h
Chapter 1 Ten Principles of Economics
h h h h h 1-1
Chapter 2 Thinking Like an Economist
h h h h h 2-1
Chapter 3 Interdependence and the Gains from Trade
h h h h h h h 3-1
Part 2 Supply And Demand: How Markets Work
h h h h h h h
Chapter 4 The Market Forces of Supply and Demand
h h h h h h h h 4-1
Part 3 The Data of Macroeconomics
h h h h h
Chapter 5 Measuring a Nation’s Income
h h h h h 5-1
Chapter 6 Measuring the Cost of Living
h h h h h h 6-1
Part 4 The Real Economy in the Long Run
h h h h h h h h
Chapter 7 Production and Growth
h h h h 7-1
Chapter 8 Saving, Investment, and the Financial System
h h h h h h h 8-1
Chapter 9 Unemployment and Its Natural Rate
h h h h h h 9-1
Part 5 Money And Prices in the Long Run
h h h h h h h h
Chapter 10 The Monetary System
h h h h 10-1
Chapter 11 Money Growth and Inflation
h h h h h 11-1
Part 6 The Macroeconomics of Open Economies
h h h h h h
Chapter 12 Open-Economy Macroeconomics: Basic Concepts
h h h h h 12-1
Chapter 13 A Macroeconomic Theory of the Small Open Economy
h h h h h h h h h 13-1
Part 7 Short-Run Economic Fluctuations
h h h h
Chapter 14 Aggregate Demand and Aggregate Supply
h h h h h h 14-1
Chapter 15 The Influence of Monetary and Fiscal Policy on Aggregate Demand
h h h h h h h h h h h 15-1
Chapter 16 The Short-Run Tradeoff between Inflation and Unemployment
h h h h h h h h 16-1
Part 8 Final Thoughts
h h h
Chapter 17 Five Debates over Macroeconomic Policy
h h h h h h 17-1
iii
, PREFACE
In most post-secondary courses, a large percentage of student assessment is based on
h h h h h h h h h h h h
hmultiple- choice testing. Many instructors use multiple-choice reluctantly, believing that it is
h h h h h h h h h h h
ha methodology best used for testing what a student remembers rather than what she or he
h h h h h h h h h h h h h h h
hhas learned. h
Nelson Education Ltd. understands that a good quality multiple-choice test bank can provide
h h h h h h h h h h h h
hthe means to measure higher-level thinking skills as well as recall. Recognizing the
h h h h h h h h h h h h
himportance of multiple-choice testing in today’s classroom, we have created NETA—the
h h h h h h h h h h
hNelson Education Teaching Advantage program—to ensure the value of our high quality
h h h h h h h h h h h
test banks.
h h
The NETA program was created in partnership with David DiBattista, a 3M National Teaching
h h h h h h h h h h h h h
hFellow, professor of psychology at Brock University, and researcher in the area of multiple-
h h h h h h h h h h h h h
hchoice testing. NETA ensures that subject-matter experts who author test banks have had
h h h h h h h h h h h h
htraining in two areas: avoiding common errors in test construction, and developing multiple-
h h h h h h h h h h h h
hchoice test questions that “get beyond remembering” to assess higher-level thinking.
h h h h h h h h h h
All NETA test banks include David DiBattista’s guide for instructors, “Multiple Choice Tests:
h h h h h h h h h h h h
hGetting Beyond Remembering.” This guide has been designed to assist you in using Nelson
h h h h h h h h h h h h h
htest banks to achieve your desired outcomes in your course.
h h h h h h h h h
The Test Bank for Principles of Macroeconomics, Sixth Canadian Edition has been revised for
h h h h h h h h h h h h h
hCanadian students by Constantin Colonescu, MacEwan University. The multiple-choice
h h h h h h h h
hquestions were written and edited to conform to NETA guidelines, which emphasize the
h h h h h h h h h h h h
hdevelopment of higher-order thinking and the effective construction of questions. NETA
h h h h h h h h h h
hprinciples of question construction help eliminate ambiguity, arguable answers, guesswork,
h h h h h h h h h
hand unconscious cues to test-savvy students, resulting in a test that accurately reflects
h h h h h h h h h h h h
student understanding. The Test Bank offers over 3510 questions, including about 2822
h h h h h h h h h h h h
multiple choice, about 362 true/false, about 162 problems, and about 164 short answer
h h h h h h h h h h h h h
questions.
h
In addition to providing a variety of questions related to each chapter objective, this test bank
h h h h h h h h h h h h h h h
h also employs a series of tags that can help design effective, balanced tests by the measure
h h h h h h h h h h h h h h h
hof course outcomes. All of the tags are included with the question in the test bank. These
h h h h h h h h h h h h h h h h
htags include: h
ANS: The correct answer. (Suggested answers are provided for the short answer
h h h h h h h h h h h
questions.)
h
4
Test Bank h
to accompany
h
Test Bank prepared by
h h h
h Constantin Colonescuh
MacEwan University
h h
,NETA Assessment: Test Bank to accompany Principles of Macroeconomics,
h h h h h h h h
Sixth Canadian Edition
h h
By N. Gregory Mankiw / Ronald D. Kneebone / Kenneth J. McKenzie
h h h h h h h h h h h
Test Bank prepared by Constantin Colonescu, MacEwan University
h h h h h h h
NETA copy editor: Frances Robinson
h h h h
Available on Instructor’s Resource CD ISBN . 0-17-655440-8
h h h h h h h
COPYRIGHT ©2014 by Nelson Education Ltd. Nelson is a registered trademark used herein under licence. All
h h h h h h h h h h h h h h h
hrights reserved.
h
For more information contact Nelson, 1120 Birchmount Road, Toronto, Ontario M1K 5G4. Or you can visit our
h h h h h h h h h h h h h h h h
hInternet site at www.nelson.com.
h h h
ALL RIGHTS RESERVED. No part of this work covered by the copyright hereon may be reproduced or used in
h h h h h h h h h h h h h h h h h h
hany form or by any means—graphic, electronic, or mechanical, including photocopying, recording, taping, web
h h h h h h h h h h h h h
hdistribution or information storage and retrieval systems—without the written permission of the publisher
h h h h h h h h h h h h
ii
, TABLE OF CONTENTS h h
Part 1 Introduction
h h
Chapter 1 Ten Principles of Economics
h h h h h 1-1
Chapter 2 Thinking Like an Economist
h h h h h 2-1
Chapter 3 Interdependence and the Gains from Trade
h h h h h h h 3-1
Part 2 Supply And Demand: How Markets Work
h h h h h h h
Chapter 4 The Market Forces of Supply and Demand
h h h h h h h h 4-1
Part 3 The Data of Macroeconomics
h h h h h
Chapter 5 Measuring a Nation’s Income
h h h h h 5-1
Chapter 6 Measuring the Cost of Living
h h h h h h 6-1
Part 4 The Real Economy in the Long Run
h h h h h h h h
Chapter 7 Production and Growth
h h h h 7-1
Chapter 8 Saving, Investment, and the Financial System
h h h h h h h 8-1
Chapter 9 Unemployment and Its Natural Rate
h h h h h h 9-1
Part 5 Money And Prices in the Long Run
h h h h h h h h
Chapter 10 The Monetary System
h h h h 10-1
Chapter 11 Money Growth and Inflation
h h h h h 11-1
Part 6 The Macroeconomics of Open Economies
h h h h h h
Chapter 12 Open-Economy Macroeconomics: Basic Concepts
h h h h h 12-1
Chapter 13 A Macroeconomic Theory of the Small Open Economy
h h h h h h h h h 13-1
Part 7 Short-Run Economic Fluctuations
h h h h
Chapter 14 Aggregate Demand and Aggregate Supply
h h h h h h 14-1
Chapter 15 The Influence of Monetary and Fiscal Policy on Aggregate Demand
h h h h h h h h h h h 15-1
Chapter 16 The Short-Run Tradeoff between Inflation and Unemployment
h h h h h h h h 16-1
Part 8 Final Thoughts
h h h
Chapter 17 Five Debates over Macroeconomic Policy
h h h h h h 17-1
iii
, PREFACE
In most post-secondary courses, a large percentage of student assessment is based on
h h h h h h h h h h h h
hmultiple- choice testing. Many instructors use multiple-choice reluctantly, believing that it is
h h h h h h h h h h h
ha methodology best used for testing what a student remembers rather than what she or he
h h h h h h h h h h h h h h h
hhas learned. h
Nelson Education Ltd. understands that a good quality multiple-choice test bank can provide
h h h h h h h h h h h h
hthe means to measure higher-level thinking skills as well as recall. Recognizing the
h h h h h h h h h h h h
himportance of multiple-choice testing in today’s classroom, we have created NETA—the
h h h h h h h h h h
hNelson Education Teaching Advantage program—to ensure the value of our high quality
h h h h h h h h h h h
test banks.
h h
The NETA program was created in partnership with David DiBattista, a 3M National Teaching
h h h h h h h h h h h h h
hFellow, professor of psychology at Brock University, and researcher in the area of multiple-
h h h h h h h h h h h h h
hchoice testing. NETA ensures that subject-matter experts who author test banks have had
h h h h h h h h h h h h
htraining in two areas: avoiding common errors in test construction, and developing multiple-
h h h h h h h h h h h h
hchoice test questions that “get beyond remembering” to assess higher-level thinking.
h h h h h h h h h h
All NETA test banks include David DiBattista’s guide for instructors, “Multiple Choice Tests:
h h h h h h h h h h h h
hGetting Beyond Remembering.” This guide has been designed to assist you in using Nelson
h h h h h h h h h h h h h
htest banks to achieve your desired outcomes in your course.
h h h h h h h h h
The Test Bank for Principles of Macroeconomics, Sixth Canadian Edition has been revised for
h h h h h h h h h h h h h
hCanadian students by Constantin Colonescu, MacEwan University. The multiple-choice
h h h h h h h h
hquestions were written and edited to conform to NETA guidelines, which emphasize the
h h h h h h h h h h h h
hdevelopment of higher-order thinking and the effective construction of questions. NETA
h h h h h h h h h h
hprinciples of question construction help eliminate ambiguity, arguable answers, guesswork,
h h h h h h h h h
hand unconscious cues to test-savvy students, resulting in a test that accurately reflects
h h h h h h h h h h h h
student understanding. The Test Bank offers over 3510 questions, including about 2822
h h h h h h h h h h h h
multiple choice, about 362 true/false, about 162 problems, and about 164 short answer
h h h h h h h h h h h h h
questions.
h
In addition to providing a variety of questions related to each chapter objective, this test bank
h h h h h h h h h h h h h h h
h also employs a series of tags that can help design effective, balanced tests by the measure
h h h h h h h h h h h h h h h
hof course outcomes. All of the tags are included with the question in the test bank. These
h h h h h h h h h h h h h h h h
htags include: h
ANS: The correct answer. (Suggested answers are provided for the short answer
h h h h h h h h h h h
questions.)
h
4
