Test Bank to accompany Principles of Macroeconomics, Sixth Canadian Edition By N. Gregory Mankiw / Ronald D. Kneebone / Kenneth J. McKenzie (Latest complete edition with rationales)

NETA ASSESSMENT
Test Bank
to accompany




Test Bank prepared by
Constantin Colonescu
MacEwan University

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

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




Test Bank prepared by Constantin Colonescu, MacEwan University



NETA copy editor: Frances Robinson


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

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

For more information contact Nelson, 1120 Birchmount Road, Toronto, Ontario M1K 5G4. Or you can visit our
Internet site at www.nelson.com.

ALL RIGHTS RESERVED. No part of this work covered by the copyright hereon may be reproduced or used in any
form or by any means—graphic, electronic, or mechanical, including photocopying, recording, taping, web
distribution or information storage and retrieval systems—without the written permission of the publisher




ii

, TABLE OF CONTENTS

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

Part 2 Supply And Demand: How Markets Work
Chapter 4 The Market Forces of Supply and Demand 4-1

Part 3 The Data of Macroeconomics
Chapter 5 Measuring a Nation’s Income 5-1
Chapter 6 Measuring the Cost of Living 6-1

Part 4 The Real Economy in the Long Run
Chapter 7 Production and Growth 7-1
Chapter 8 Saving, Investment, and the Financial System 8-1
Chapter 9 Unemployment and Its Natural Rate 9-1

Part 5 Money And Prices in the Long Run
Chapter 10 The Monetary System 10-1
Chapter 11 Money Growth and Inflation 11-1

Part 6 The Macroeconomics of Open Economies
Chapter 12 Open-Economy Macroeconomics: Basic Concepts 12-1
Chapter 13 A Macroeconomic Theory of the Small Open Economy 13-1

Part 7 Short-Run Economic Fluctuations
Chapter 14 Aggregate Demand and Aggregate Supply 14-1
Chapter 15 The Influence of Monetary and Fiscal Policy on Aggregate Demand 15-1
Chapter 16 The Short-Run Tradeoff between Inflation and Unemployment 16-1

Part 8 Final Thoughts
Chapter 17 Five Debates over Macroeconomic Policy 17-1




iii

, Chapter 1—Ten Principles of Economics


MULTIPLE CHOICE

1. Which word comes from the Greek word for “one who manages a household”?
a. market
b. consumer
c. producer
d. economy
ANS: D PTS: 1 DIF: Easy REF: p. 3-4
BLM: Remember NOT: Macro TB_1-1

2. From which Greek word(s) is the word economy derived?
a. environment
b. one who manages a household
c. one who participates in a market
d. conservation
ANS: B PTS: 1 DIF: Easy REF: p. 3-4
BLM: Remember NOT: Macro TB_1-2

3. What do households and economies have in common?
a. They both must allocate scarce resources.
b. They both face many decisions.
c. They both must allocate the goods and services they produce.
d. They both must have a central decision maker.
ANS: D PTS: 1 DIF: Average REF: p. 3-4
BLM: Remember NOT: Macro TB_1-3

4. What concept does economics primarily deal with?
a. scarcity
b. poverty
c. change
d. power
ANS: A PTS: 1 DIF: Easy REF: p. 4
BLM: Remember NOT: Macro TB_1-4

5. Which of the following is NOT included in the decisions that every society must make?
a. what goods will be produced
b. who will produce the goods
c. what determines consumer preferences
d. who will consume the goods
ANS: C PTS: 1 DIF: Average REF: p. 4
BLM: Remember NOT: Macro TB_1-5




Copyright © 2014 Nelson Education Limited. 1-1