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Test Bank for Macroeconomics Principles for a Changing World 5th Edition by Eric Chiang
Test Bank for Macroeconomics Principles for a Changing World 5th Edition by Eric Chiang
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2 reviews
By: marnier55 • 8 months ago
Good reference material
By: kimberlylancer • 8 months ago
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Name: Class: Date: Copyright Macmillan Learning. Powered by Cognero. Page 1 TEST BANK FOR ALL CHAPTERS Answers are at the end of each chapter chapter 1 Indicate the answer choice that best completes the statement or answers the question. 1. Ceteris paribus means a. everything changes. b. everything is held constant. c. other things being equal. d. nothing changes. 2. When economists say that all societies face scarcity, they are describing a. free lunches. b. unlimited resources. c. unlimited wants. d. tradeoffs societies must make. 3. Stylized economic models must include a. assumptions. b. inflation. c. money. d. complexity. 4. Time series graphs a. show data that can be split into percentages that, when combined, make up the whole. b. show the relative importance of some variable's components as a share of the whole. c. include the value of a variable on the horizontal axis and minutes, hours, days, months, quarters, or years on the vertical axis. d. include the value of a variable on the vertical axis and minutes, hours, days, months, quarters, or years on the horizontal axis. 5. Suppose Mike has three hours of time to spend so he ranks the following activities in order of priority: (1) see a movie, (2) attend a ball game, (3) study economics. Assume that each activity takes three hours. What is Mike's opportunity cost of seeing a movie? a. attending a ball game and studying economics b. studying economics c. attending a ball game d. either attending a ball game or studying economics 6. Economists like to use graphs and equations primarily because a. these tools efficiently express economic concepts. Name: Class: Date: Copyright Macmillan Learning. Powered by Cognero. Page 2 b. economics should be difficult. c. mathematical aptitude is necessary to understand economics. d. the use of mathematics reduces rigor. 7. The opportunity cost of undertaking an activity is defined as the _____ activity. a. cost forgone by not undertaking another b. monetary cost of undertaking that c. benefit forgone by not undertaking the next best d. monetary benefit of undertaking that 8. (Figure: Graph Examples) Which graph is an example of a bar chart? a. graph A b. graph B c. graph C d. graph D Name: Class: Date: Copyright Macmillan Learning. Powered by Cognero. Page 3 9. Microeconomics is concerned with issues such as a. inflation. b. unemployment. c. which job to take. d. interest rates. 10. Economic problems are analyzed using stylized models that are a. as detailed as possible. b. based on recent case studies. c. very complex and mathematical. d. simplified by using assumptions. 11. Opportunity cost involves nonmonetary costs rather than monetary costs. a. True b. False 12. Which statement about economic models is FALSE? a. In practice, it is easy for an economist to isolate economic variables. b. Economists hold all other variables constant in order to see the impact of one particular variable. c. Economic models lead to economic theories that must be tested. d. Economic models are built using assumptions. 13. Production efficiency occurs when goods are a. produced with the lowest possible resource cost. b. allocated equally to those who paid the most for them. c. delivered to those who have the greatest willingness and ability to acquire them. d. allocated to those with the greatest need. 14. A society that is able to produce goods and services at the lowest possible cost is experiencing a. allocative efficiency. b. production efficiency. c. opportunity costs. d. scarcity. 15. Which statement is NOT considered a key principle of economics? a. Scarcity exists for everyone. b. People face economic incentives on a regular basis. c. Irrational behavior requires thinking at the margin. d. Information is important to producers and consumers. 16. Setting government policy to achieve economic goals is challenging because policies that tend to reduce Name: Class: Date: Copyright Macmillan Learning. Powered by Cognero. Page 4 unemployment are likely to a. reduce economic growth. b. cause upward pressure on inflation. c. be completely ineffective in the short run. d. reduce inflation to nearly zero. 17. The highest valued alternative that is forgone when you choose an action is called its a. opportunity cost. b. utility. c. scarcity. d. benefit. 18. Which concept would be addressed by microeconomics? a. the national unemployment rate b. the reasons for a decline in a country's total output c. the price of college tuition that an individual student pays d. the inflation rate in Brazil 19. Economists believe that a. making information available to market participants improves market function. b. information should be sold to the highest bidder. c. the flow of information has minimal impact on market efficiency. d. data is more important to traders than information. 20. When two variables appear to be related according to a scatter plot, one must be causing the other to occur. a. True b. False 21. Scarcity occurs when an individual's resources exceed his wants. a. True b. False 22. Heather has one employee in her sweater shop who can sew 6 sweaters a day. When she hires a second person, the two employees can make 10 sweaters together. Thinking at the margin, the extra benefit received from hiring a second worker is _____ sweaters. a. 4 b. 6 c. 10 d. 16 23. Supply and demand analysis is used a. only in microeconomics.The benefits of buying summaries with Stuvia:
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