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Macroeconomics 8th Canadian Edition Andrew Abel - Test Bank
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Macroeconomics 8th Canadian Edition Andrew Abel - Test Bank
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, TEST ITEM FILESaeed Moshiri
St. Thomas More College, University of Saskatchewan
Macroeconomics
Eighth Canadian Edition
Andrew B. Abel
University of Pennsylvania
Ben S. Bernanke
Dean Croushore
University of Richmond
Ronald D. Kneebone
University of Calgary
ISBN: 978-0-13-484257-8
Copyright © 2019 Pearson Canada Inc., Toronto, Ontario. All rights reserved. This work is protected by Canadian
copyright laws and is provided solely for the use of instructors in teaching their courses and assessing student learning.
Dissemination or sale of any part of this work (including on the Internet) will destroy the integrity of the work and is
not permitted. The copyright holder grants permission to instructors who have adopted Macroeconomics, by Abel,
Bernanke, Croushore, and Kneebone, to post this material online only if the use of the website is restricted by access
codes to students in the instructor’s class that is using the textbook and provided the reproduced material bears this
copyright notice.
,Macroeconomics, Cdn. 8e (Abel et al.)
Chapter 1 Introduction to Macroeconomics
1.1 Multiple-Choice Questions
1) Which of the following is a topic of macroeconomics?
A) why nations have different rates of growth
B) what causes inflation and what can be done about it
C) why unemployment periodically reaches very high levels
D) all of the above
Answer: D
Diff: 1 Type: MC Page Ref: 1
2) The two major reasons for the tremendous growth in output in the Canadian economy over the
last 125 years are
A) population growth and budget deficit.
B) population growth and increased productivity.
C) low unemployment and budget surplus.
D) low budget deficit and low trade deficits.
Answer: B
Diff: 1 Type: MC Page Ref: 2
3) The main reason Canada has such a high standard of living is
A) low unemployment.
B) high average labour productivity.
C) low inflation.
D) low government budget deficits.
Answer: B
Diff: 1 Type: MC Page Ref: 2
4) Average labour productivity is
A) the amount of workers per machine.
B) the amount of machines per worker.
C) the ratio of employed to unemployed workers.
D) the amount of output per worker.
Answer: D
Diff: 1 Type: MC Page Ref: 2
5) In analyzing macroeconomic data during the past year, you have discovered that average
labour productivity fell, but total output increased. What was most likely to have caused this?
A) Government deficit was reduced.
B) The capital/output ratio probably rose.
C) There was an increase in labour input.
D) Unemployment probably increased.
Answer: C
Diff: 3 Type: MC Page Ref: 2
1
Copyright © 2019 Pearson Canada Inc.
, 6) The business cycle describes the
A) progression of an industry's structure from monopoly to perfect competition.
B) progression of an industry's structure from perfect competition to monopoly.
C) expansion and contraction of an individual industry within the economy.
D) expansion and contraction of economic activity in the economy as a whole.
Answer: D
Diff: 1 Type: MC Page Ref: 3
7) The short-run, but sometimes sharp, contractions and expansions in economic activity are
called
A) recession.
B) stagnation.
C) inflation.
D) business cycles.
Answer: D
Diff: 1 Type: MC Page Ref: 3
8) When national output declines, the economy is said to be in
A) an expansion.
B) a deflation.
C) a recovery.
D) a recession.
Answer: D
Diff: 1 Type: MC Page Ref: 3
9) During recessions, the unemployment rate ________ and output ________.
A) rises; falls
B) rises; rises
C) falls; rises
D) falls; falls
Answer: A
Diff: 1 Type: MC Page Ref: 3
10) The unemployment rate is the
A) number of unemployed divided by the number of employed.
B) number of employed divided by the number of unemployed.
C) number of unemployed divided by the labour force.
D) labour force divided by the number of unemployed.
Answer: C
Diff: 1 Type: MC Page Ref: 4
2
Copyright © 2019 Pearson Canada Inc.
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