Type:
Test Bank
Resource:
Macroeconomics
Edition:
4th Edition
Author(s):
R. Glenn Hubbard Anthony Patrick O’Brien Apostolos Serletis Jason Childs
Test Bank Aqeela Tabassum Humber Institute of Technology
Macroeconomics Fourth Canadian Edition Glenn Hubbard Columbia University
Anthony Patrick O’Brien Lehigh University
Apostolos Serletis University of Calgary
Jason Childs University of Regina
Contents Chapter 1: Economics: Foundations and Models Chapter 2: Trade-offs, Comparative Advantage, and the Market System Chapter 3: Where Prices Come From: The Interaction of Supply and Demand Chapter 4: GDP: Measuring Total Production and Income Chapter 5: Unemployment and Inflation Chapter 6: Economic Growth, the Financial System, and Business Cycles Chapter 7: Long-Run Economic Growth: Sources and Policies Chapter 8: Aggregate Expenditure and Output in the Short Run Chapter 9: Aggregate Demand and Aggregate Supply Analysis Chapter 10: Money, Banks, and the Bank of Canada Chapter 11: Monetary Policy Chapter 12: Fiscal Policy Chapter 13: Inflation, Unemployment, and Bank of Canada Policy Chapter 14: Macroeconomics in an Open Economy
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Macroeconomics, 4Ce (Hubbard) Chapter 1 Economics: Foundations and Models 1.1 Explain these three key economic ideas: People are rational, people respond to incentives, and optimal decisions are made at the margin 1) Changes in global weather patterns can lead to A) more Canadians drinking coffee. B) Canadians having to pay more for coffee. C) wage increases for coffee shop employees. D) the destruction of the Canadian coffee harvest. E) Canadians demanding more coffee. Answer: B Diff: 1 Type: MC Topic: Scarcity Learning Outcome: 1.1 Explain these three key economic ideas: People are rational, people respond to incentives, optimal decisions are made at the margin AACSB: Reflective Thinking Special Feature: Chapter Opener: You versus Caffeine? 2) The study of economics arises due to A) money. B) scarcity. C) greed. D) unlimited resources. E) unemployment. Answer: B Diff: 1 Type: MC Topic: Scarcity Learning Outcome: 1.1 Explain these three key economic ideas: People are rational, people respond to incentives, optimal decisions are made at the margin AACSB: Analytic Skills 3) Scarcity refers to the situation in which A) unlimited wants exceed limited resources. B) unlimited resources exceed limited wants. C) a country's population is larger than its resource base. D) a nation's poverty level increases faster than its population. E) our needs and wants are finite. Answer: A Diff: 1 Type: MC Topic: Scarcity Learning Outcome: 1.1 Explain these three key economic ideas: People are rational, people respond to incentives, optimal decisions are made at the margin AACSB: Analytic Skills
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4) The basic economic problem of ________ has always existed and will continue to exist. A) scarcity B) efficiency C) inflation D) recession E) unemployment Answer: A Diff: 1 Type: MC Topic: Scarcity Learning Outcome: 1.1 Explain these three key economic ideas: People are rational, people respond to incentives, optimal decisions are made at the margin AACSB: Reflective Thinking 5) Economics is the study of the ________ people make to attain their goals, given their ________ resources. A) purchases; unlimited B) choices; scarce C) income; available D) decisions; household E) output; time Answer: B Diff: 1 Type: MC Topic: Scarcity Learning Outcome: 1.1 Explain these three key economic ideas: People are rational, people respond to incentives, optimal decisions are made at the margin AACSB: Analytic Skills 6) An economic ________ is a simplified version of some aspect of economic life used to analyze an economic issue. A) market B) trade-off C) variable D) model E) opportunity cost Answer: D Diff: 1 Type: MC Topic: Economic Models Learning Outcome: 1.1 Explain these three key economic ideas: People are rational, people respond to incentives, optimal decisions are made at the margin AACSB: Reflective Thinking
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