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Test Bank For Principles of Macroeconomics Sixth Canadian Edition Canadian 6Th Edition Mankiw Kneebone and Mckenzie 0176530851 9780176530853
Test Bank For Principles of Macroeconomics Sixth Canadian Edition Canadian 6Th Edition Mankiw Kneebone and Mckenzie 0176530851 9780176530853
MULTIPLE CHOICE
1. Which statement best describes the way economists study the economy?
a. Economists study the past, but do not try to predict the future.
b. Economists use a probabilistic approach based on correlations between economic events.
c. Economists devise theories, collect data, and then analyze the data to test the theories.
d. Economists use controlled experiments much the same way a biologist or physicist does.
c. the use of controlled experiments in understanding the way the world works
d. finding evidence to support preconceived theories about how the world works
4. Who said, “The whole of science is nothing more than a refinement of everyday thinking”? a. Isaac
Newton
b. Albert Einstein
c. Sigmund Freud
d. Stephen Hawking
6. Sir Isaac Newton developed the theory of gravity after observing an apple fall from a tree. What is this
an example of?
a. a controlled experiment used to develop scientific theory
b. being in the right place at the right time
c. an idea whose time had come
the interplay between observation and theory in science
D PTS: 1 DIF: Average
7. What is a common thread between economics and other sciences, such as physics?
a. Experiments are most often conducted in a lab.
b. Real-world observations often lead to theories.
d.
8. Why is the use of theory and observation more difficult in economics than in sciences, such as physics?
a. It is difficult to evaluate an economic experiment.
b. It is difficult to devise an economic experiment.
c. It is difficult to actually perform an experiment in an economic system.
d. It is difficult to collect sufficient data.
9. Because it is difficult for economists to use experiments to generate data, what must they generally do?
a. do without data
b. use whatever data the world gives them
c. select a committee of economists to make up data for all economists to use
d. use hypothetical, computer-generated data
11. Which of the following is one difficulty economists face that some other scientists do not?
d.
a. Unlike other sciences, economic studies must include the largest economic player, the
government.
b. Economists unfortunately receive less government funding than other scientists.
c. Corporations are reluctant to disclose necessary information for economic research.
d. Experiments are often difficult to conduct in economics.
12. Where do the most common data for testing economic theories come from?
a. carefully controlled and conducted laboratory experiments
b. traditional economies
c. historical episodes of economic change
centrally planned economies
C PTS: 1 DIF: Average
13. For economists, what are often used as substitutes for laboratory experiments?
a. natural experiments offered by history
b. computer-generated experiments
c. studies conducted by other disciplines, such as sociologists
d. well-constructed simulations
15. Which of the following does the art of scientific thinking include?
d.
16. If an economist develops a theory about international trade based on the assumption that there are only
two countries and two goods, what is most likely?
a. The theory can be useful only in situations involving two countries and two goods.
b. It is a total waste of time, since the actual world has many countries trading many goods.
c. The theory can be useful in helping economists understand the complex world of international
trade involving many countries and many goods.
d. The theory can be useful in the classroom, but has no use in the real world.
20. When economists attempt to simplify the real world and make it easier to understand, what do they do?
a. They make assumptions.
b. They make mistakes in judgment.
c. They make predictions.
d. They make evaluations.
25. Which of the following is an example of a product that experiences infrequent price changes?
a. stocks on the Toronto Stock Exchange
b. gasoline
c. the newsstand price of magazines
d. gold in international markets
26. When studying the effects of public policy changes, what have economists often observed?
a. There is a difference between the long run and the short run.
b. Unemployment and inflation are directly related in the short run.
c. With stock prices, what goes up must come down.
d. If the policy is well designed, it will always be effective.
27. When studying the effects of public policy changes, what do economists do?
a. They often falsify results if the desired effect is not reached.
b. They may make different assumptions for the long run and the short run.
c. They attempt to consider only the direct effects and not the indirect effects.
d. They can immediately change policies if they are ineffective.
36. What are the foundation stones from which economic models are built?
a. economic policies
b. legal systems
c. assumptions
d. statistical forecasts
40. In the simple circular-flow diagram, who are the decision makers?
a. firms and government
b. households and firms
c. households and government
d. households, firms, and government
46. What is another name for goods and services produced by firms?
a. factors of production
b. outputs
c. inputs
d. resources
49. According to a simple circular-flow diagram, how many markets do households and firms interact in? a.
one type of market
b. two types of markets
c. three types of markets
d. four types of markets
51. In the goods and services market, how do households and firms interact?
a. Households and firms are both buyers.
b. Households are sellers and firms are buyers.
c. Households are buyers and firms are sellers.
d. Households and firms are both sellers.
ANS: C PTS: 1 DIF: Average REF: p. 25
BLM: Remember NOT: Macro TB_2-51
52. In the factors of production market, how do households and firms interact?
a. Households are sellers and firms are buyers.
b. Households are buyers and firms are sellers.
c. Households and firms are both buyers.
d. Households and firms are both sellers.
Figure 2-1
53. Refer to Figure 2-1. Which arrow shows the flow of goods and services?
a. arrow A
b. arrow B
c. arrow C
d. arrow D
54. Refer to Figure 2-1. Which arrow shows the flow of spending by households?
a. arrow A
b. arrow B
c. arrow C
d. arrow D
ANS: A PTS: 1 DIF: Average REF: p. 25
BLM: Higher Order NOT: Macro TB_2-54
55. Refer to Figure 2-1. Which arrow shows the flow of the factors of production?
a. arrow A
b. arrow B
c. arrow C
d. arrow D
56. Refer to Figure 2-1. Which arrow shows the flow of income payments?
a. arrow A
b. arrow B
c. arrow C
d. arrow D
Figure 2-2
52. The raven was regarded as sacred, and greatly venerated by the old Norse Vikings, who
had always one or two of these birds in their ships. When setting out on marauding
expeditions the raven was let loose and his flight followed by the bold voyagers, in the
belief that he led them to war and victory. These birds it was supposed lived to a
fabulous age. Odin’s shield had a raven on it, and so had the Landeyda or battle-flag of
Sigurd, which ever led to victory, although its bearer was doomed to die. Hialtland is the
ancient name of Shetland. The Norse rovers thought it a disgrace to die in their beds in
peace; and when they found their end approaching, clad in armour, had themselves
carried on board their ships which were then set fire to and sent adrift, that the old
heroes might die, as they had lived, on the ocean, and thence worthily rise to Valhalla.
53. The “Death of the Old Norse King,” translated into Icelandic verse by the Rev. Olaf
Pálsson.
54. A rix dollar is equal in value to 2/3 English. A skilling is a fraction more than a farthing.
55. Extracted from the postscript to Mr. William Longman’s “Suggestions for the
Exploration of Iceland”—an address delivered to the members of the Alpine Club, of
which he is Vice-President.—Longman & Co., 1861.
56. This chapter, written in December 1859, has already appeared in the pages of a
periodical.—A.J.S.
57. These journals, while admitting, in a general though apologetic way, that great evils exist
in connection with slavery, yet, somehow, on every occasion, systematically and
persistently uphold pro-slavery measures and interests.
58. Fuller information and subsequent events in America have justified and amply
confirmed this estimate of Brown, formed at the time. Having had access to documents,
published and unpublished, and being in a position to judge, we would confidently refer
the reader to a volume of 452 pp. 8vo., since published by Smith, Elder & Co.—“The
Life and Letters of Captain John Brown, edited by Richard D. Webbe”—as presenting a
fair statement of the facts of the case. From Brown’s deeds and words, therein recorded,
it will be clearly seen, how calm, noble and dignified was the bearing of the man whom
short-sighted trimmers, on both sides the Atlantic, have attempted to brand as a fanatic.
60. The antiquarian book to which we have already referred, erroneously attributes the
discovery to Garder, a Dane of Swedish origin. Our authority is Gísli Brynjúlfsson, the
Icelandic poet, now resident in Copenhagen, to whose kindness we are also indebted for
the copy of this work which we possess.
61. For these last, we would refer to Thorpe’s “Yuletide Stories,” Dasent’s “Popular Tales
from the Norse,” our own Nursery Lore, and to preceding Stories and Tales in this
appendix.
62. Mr. Dasent has since published an admirable translation of “Njal’s Saga,” which presents
a vivid picture of life in Iceland at the end of the tenth century.
Pg. vii: Punctuation consistency: ‘on Northern Subjects.’ to ‘on Northern Subjects’—Removed
period at end of TOC entry
Pg. 12: Repeated word: ‘in in the time’ to ‘in the time’
Pg. 52: Punctuation fix: ‘cleanliness comfort and refinement’ to ‘cleanliness, comfort and
refinement’—Added missing comma
Pg. 70: Corrected typo: ‘at each others’ to ‘at each other’s’—Added missing apostrophe
Pg. 138: Missing punctuation: ‘Faröe Islands. pp 30’ to ‘Faröe Islands, pp 30’—Period for
comma
Pg. 167: Quote placement: ‘has ever occurred.’ to ‘has ever occurred.”’—Added missing close-
quote to quote end
Pg. 171: Punctuation fix: ‘issue from Kötlugjá,’ to ‘issue from Kötlugjá.’—Comma for period
Pg. 189: Extra punctuation: ‘lava. continued’ to ‘lava continued’—Removed extra period
Pg. 226: Proper name consistency: ‘A. J. S.’ to ‘A.J.S.’—Usually without spaces
Pg. 239: Missing punctuation : ‘such a rib as this’ to ‘such a rib as this?’—Added missing ‘?’ at
para end
Pg. 242: Missing punctuation : ‘if she does’ to ‘“if she does’—Added missing opening
quotation mark
Pg. 259: Quote placement: ‘little porridge pot.’ to ‘little porridge pot.”’—Added missing close-
quote at quote end
Pg. 260: Proper name consistency: ‘Vola’ to ‘Vala’—Nominative form corrected, see next
sentence
Pg. 260: Chapter / TOC consistency: ‘N/A’ to ‘FROM THE “VÖLUSPÁ”’—Added section
heading where indicated in TOC
Pg. 262: Chapter / TOC consistency: ‘N/A’ to ‘FROM THE “SÓLAR LJÓD”’—Added
section heading where indicated in TOC
Pg. 264: Quote placement: ‘this Sun’s Song!’ to ‘this Sun’s Song!”’—Added missing close-
quote at poem end
Pg. 265: Quote placement: ‘Odin’s High Song’ to ‘“Odin’s High Song’—Added missing open-
quote at quote beginning
Pg. 265: Chapter / TOC consistency: ‘N/A’ to ‘FROM THE POEMS RELATING TO
SIGURD & BRYNHILD.’—Added section heading where indicated in TOC
Pg. 267: Missing punctuation : ‘the man speaks his mind’ to ‘the man speaks his mind.’—
Missing period added at stanza end
Pg. 272: Missing punctuation: ‘live without crime’ to ‘live without crime.’—Missing period
added at stanza end
Pg. 274: Missing punctuation: ‘in her breast’ to ‘in her breast.’—Missing period added at
stanza end
Pg. 275: Corrected typo: ‘CXII’ to ‘XCII’
Pg. 292: Punctuation fix: ‘lava,’ to ‘lava.’—Comma for period at entry end
Pg. 310: Missing punctuation: ‘days 296’ to ‘days, 296’—Added comma before pg. number
Pg. 310: Missing punctuation: ‘26’ to ‘26.’—Added missing period at end of index subentry
Pg. 313: Punctuation fix: ‘Plain, 94.’ to ‘Plain, 94’—Extra punctuation at entry end
Pg. 313: Punctuation fix: ‘Plateau, 74.’ to ‘Plateau, 74’—Extra punctuation at entry end
Pg. 313: Punctuation fix: ‘Pits, 107.’ to ‘Pits, 107’—Extra punctuation at entry end
Pg. 314: Missing punctuation: ‘140’ to ‘140.’—Added missing period at end of index subentry
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