Test Bank for Macroeconomics, 22nd Edition,
m m m m m
Campbell McConnell, Stanley Brue Sean Fly
m m m m m m
nn
Versionm1 1
,TRUE/FALSE m-mWritem'T'mif mthemstatementmismtruemandm'F'mif mthemstatementmismfalse.
1) Anmeconomicmmodelmismanmidealmormutopianmtypemof meconomymthat msocietymshould mstrive
mtomobtainmthroughmeconomicmpolicy.
⊚ true
⊚ false
2) Becausemeconomicmgeneralizationsmaremsimplificationsmfrommreality,mtheymaremimpractic
almand museless.
⊚ true
⊚ false
3) If meconomicmtheoriesmaremsolidlymbased monmrelevant mfacts,mthenmappropriatemeconomicmpoli
cymbecomesmobviousmand muncontroversial.
⊚ true
⊚ false
4) Normativemstatementsmaremexpressionsmof mfacts.
⊚ true
⊚ false
5) Positivemstatementsmaremexpressionsmof mvaluemjudgments.
⊚ true
⊚ false
6) Macroeconomicsmexplainsmthembehaviormof mindividualmhouseholdsmand mbusinessmfirm
s;mmicroeconomicsmismconcerned mwithmthembehaviormof maggregatesmormthemeconomy masmamwh
ole.
⊚ true
⊚ false
7) Purposefulmbehaviormimpliesmthat meveryonemwillmmakem identicalmchoices.
Versionm1 2
, ⊚ true
⊚ false
8) Marginalmanalysismmeansmthat mdecisionmmakersmcomparemthemextrambenefitsmwithmthemext
ramcostsmof mamspecificmchoice.
⊚ true
⊚ false
9) Rationalmindividualsmmaymmakemdifferent mchoicesmbecausemtheirmpreferencesman
d mcircumstancesmdiffer.
⊚ true
⊚ false
10) Choicesmentailmmarginalmcostsmbecausemresourcesmaremscarce.
⊚ true
⊚ false
11) Themproductionmpossibilitiesmcurvemshowsmvariousmcombinationsmof mtwomproductsmthat m
anmeconomymcanmproducemwhenmachievingmfullmemployment.
⊚ true
⊚ false
12) Thementrepreneur'smsolemfunctionmismtomcombinemothermresourcesm(land,mlabor,mand mcapital)m
inmthemproductionmof msomemgood mormservice.
⊚ true
⊚ false
13) Productsmand mservicesmaremscarcembecausemresourcesmaremscarce.
⊚ true
⊚ false
Versionm1 3
, 14) Anmeconomymcannot mproducemat mampoint moutsidemof mitsmproductionmpossibilitiesmcur
vembecausemhumanmeconomicmwantsmareminsatiable.
⊚ true
⊚ false
15) Themprocessmbymwhichmcapitalmgoodsmaremaccumulated mismknownmasminvestment.
⊚ true
⊚ false
16) Thempresent mchoicemof mpositionmonmthemproductionmpossibilitiesmcurvemwillmnot minfluencemt
hemfuturemlocationmof mthemcurve.
⊚ true
⊚ false
17) Althoughmsleepingminmonmamworkmdaymormschoolmdaymhasmanmopportunitymcost,msleepingml
atemonmthemweekend mdoesmnot.
⊚ true
⊚ false
Versionm1 4
m m m m m
Campbell McConnell, Stanley Brue Sean Fly
m m m m m m
nn
Versionm1 1
,TRUE/FALSE m-mWritem'T'mif mthemstatementmismtruemandm'F'mif mthemstatementmismfalse.
1) Anmeconomicmmodelmismanmidealmormutopianmtypemof meconomymthat msocietymshould mstrive
mtomobtainmthroughmeconomicmpolicy.
⊚ true
⊚ false
2) Becausemeconomicmgeneralizationsmaremsimplificationsmfrommreality,mtheymaremimpractic
almand museless.
⊚ true
⊚ false
3) If meconomicmtheoriesmaremsolidlymbased monmrelevant mfacts,mthenmappropriatemeconomicmpoli
cymbecomesmobviousmand muncontroversial.
⊚ true
⊚ false
4) Normativemstatementsmaremexpressionsmof mfacts.
⊚ true
⊚ false
5) Positivemstatementsmaremexpressionsmof mvaluemjudgments.
⊚ true
⊚ false
6) Macroeconomicsmexplainsmthembehaviormof mindividualmhouseholdsmand mbusinessmfirm
s;mmicroeconomicsmismconcerned mwithmthembehaviormof maggregatesmormthemeconomy masmamwh
ole.
⊚ true
⊚ false
7) Purposefulmbehaviormimpliesmthat meveryonemwillmmakem identicalmchoices.
Versionm1 2
, ⊚ true
⊚ false
8) Marginalmanalysismmeansmthat mdecisionmmakersmcomparemthemextrambenefitsmwithmthemext
ramcostsmof mamspecificmchoice.
⊚ true
⊚ false
9) Rationalmindividualsmmaymmakemdifferent mchoicesmbecausemtheirmpreferencesman
d mcircumstancesmdiffer.
⊚ true
⊚ false
10) Choicesmentailmmarginalmcostsmbecausemresourcesmaremscarce.
⊚ true
⊚ false
11) Themproductionmpossibilitiesmcurvemshowsmvariousmcombinationsmof mtwomproductsmthat m
anmeconomymcanmproducemwhenmachievingmfullmemployment.
⊚ true
⊚ false
12) Thementrepreneur'smsolemfunctionmismtomcombinemothermresourcesm(land,mlabor,mand mcapital)m
inmthemproductionmof msomemgood mormservice.
⊚ true
⊚ false
13) Productsmand mservicesmaremscarcembecausemresourcesmaremscarce.
⊚ true
⊚ false
Versionm1 3
, 14) Anmeconomymcannot mproducemat mampoint moutsidemof mitsmproductionmpossibilitiesmcur
vembecausemhumanmeconomicmwantsmareminsatiable.
⊚ true
⊚ false
15) Themprocessmbymwhichmcapitalmgoodsmaremaccumulated mismknownmasminvestment.
⊚ true
⊚ false
16) Thempresent mchoicemof mpositionmonmthemproductionmpossibilitiesmcurvemwillmnot minfluencemt
hemfuturemlocationmof mthemcurve.
⊚ true
⊚ false
17) Althoughmsleepingminmonmamworkmdaymormschoolmdaymhasmanmopportunitymcost,msleepingml
atemonmthemweekend mdoesmnot.
⊚ true
⊚ false
Versionm1 4
