Principles of Macroeconomics 6th Canadian Edition
Principles
–Test
of Macroeconomics
Bank 6th Canadian Edition –Test Bank 2/17/2026
Principles of Macroeconomics 6th Canadian Edition –
Test Bank
TABLE OF CONTENTS
Introduction
6e Mankiw Chapter: 0 1: Ten Principles of Economics
6e Mankiw Chapter: 0 2: Thinking Like an Economist
6e Mankiw Chapter: 0 3: Interdependence and the Gains from Trade
Supply and Demand: How Markets Work
6e Mankiw Chapter: 0 4: The Market Forces of Supply and Demand
The Data of Macroeconomics
6e Mankiw Chapter: 0 5: Measuring a Nation’s Income
6e Mankiw Chapter: 0 6: Measuring the Cost of Living
The Real Economy in the Long Run
6e Mankiw Chapter: 0 7: Production and Growth
6e Mankiw Chapter: 0 8: Saving, Investment, and the Financial System
6e Mankiw Chapter: 0 9: Unemployment and Its Natural Rate
Money and Prices in the Long Run
6e Mankiw Chapter: 0 10: The Monetary System
6e Mankiw Chapter: 0 11: Money Growth and Inflation
The Macroeconomics of Open Economies
6e Mankiw Chapter: 0 12: Open-Economy Macroeconomics: Basic Concepts
6e Mankiw Chapter: 0 13: A Macroeconomic Theory of the Small Open Economy
Short-Run Economic Fluctuations
6e Mankiw Chapter: 0 14: Aggregate Demand and Aggregate Supply
6e Mankiw Chapter: 0 15: The Influence of Monetary and Fiscal Policy on Aggregate Demand
6e Mankiw Chapter: 0 16: The Short-Run Tradeoff between Inflation and Unemployment
Final Thoughts
6e Mankiw Chapter: 0 17: Five Debates over Macroeconomic Policy
Page 1 Principles of Macroeconomics 6th Canadian Edition –Test Bank.pdf
,Principles of Macroeconomics 6th Canadian Edition
Principles
–Test
of Macroeconomics
Bank 6th Canadian Edition –Test Bank 2/17/2026
6e Mankiw Chapter: 0 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
MCQ ANSWER: D PTS: 1 DIF: Easy REF: p. 3-4
BLM: Remember Principles of Macroeconomics 6th Canadian Edition – Original Test Bank1
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
MCQ ANSWER: B PTS: 1 DIF: Easy REF: p. 3-4
BLM: Remember Principles of Macroeconomics 6th Canadian Edition – Original Test Bank2
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.
MCQ ANSWER: D PTS: 1 DIF: Average REF: p. 3-4
BLM: Remember Principles of Macroeconomics 6th Canadian Edition – Original Test Bank3
4. What concept does economics primarily deal with?
a. scarcity
b. poverty
c. change
d. power
MCQ ANSWER: A PTS: 1 DIF: Easy REF: p. 4
BLM: Remember Principles of Macroeconomics 6th Canadian Edition – Original Test Bank4
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
MCQ ANSWER: C PTS: 1 DIF: Average REF: p. 4
BLM: Remember Principles of Macroeconomics 6th Canadian Edition – Original Test Bank5
Page 2 Principles of Macroeconomics 6th Canadian Edition –Test Bank.pdf
,Principles of Macroeconomics 6th Canadian Edition
Principles
–Test
of Macroeconomics
Bank 6th Canadian Edition –Test Bank 2/17/2026
Principles of Macroeconomics 6th Canadian Edition – Original Test Bank 6e Mankiw Chapter: 0 1
Mankiw
6.Why do both households and societies face many decisions?
a. because resources are scarce
b. because populations may increase or decrease over time
c. because wages for households and therefore society fluctuate with business cycles
d. because people, by nature, tend to disagree
MCQ ANSWER: A PTS: 1 DIF: Average REF: p. 4
BLM: Remember Principles of Macroeconomics 6th Canadian Edition – Original Test Bank6
7. When is a good considered scarce in a society?
a. when more output of the good is possible
b. when everyone in that society cannot have all they want of the good
c. when the government restricts production of the good
d. when only the richest people in the economy can buy all they want of the good
MCQ ANSWER: B PTS: 1 DIF: Average REF: p. 4
BLM: Remember Principles of Macroeconomics 6th Canadian Edition – Original Test Bank7
8. When does scarcity exist?
a. when there is less than an infinite amount of a resource or good
b. when society can meet the wants of every individual
c. when there is less of a good or resource available than people wish to have
d. when the government fails to produce goods
MCQ ANSWER: C PTS: 1 DIF: Average REF: p. 4
BLM: Remember Principles of Macroeconomics 6th Canadian Edition – Original Test Bank8
9. How are goods and services allocated in a market economy?
a. by government decisions
b. by giving each individual just enough for a decent standard of living
c. by the actions of all firms and consumers
d. by inherited rights and properties
MCQ ANSWER: C PTS: 1 DIF: Average REF: p. 4
BLM: Higher Order Principles of Macroeconomics 6th Canadian Edition – Original Test Bank9
10. Approximately what percentage of the world’s economies experience scarcity?
a. 25%
b. 50%
c. 75%
d. 100%
MCQ ANSWER: D PTS: 1 DIF: Easy REF: p. 4
BLM: Remember Principles of Macroeconomics 6th Canadian Edition – Original Test Bank10
11. What is the economy experiencing when a society cannot produce all the goods and services people
wish to have?
a. scarcity
b. communism
c. externalities
d. market failure
MCQ ANSWER: A PTS: 1 DIF: Easy REF: p. 4
BLM: Higher Order Principles of Macroeconomics 6th Canadian Edition – Original Test Bank11
2
Page 3 Principles of Macroeconomics 6th Canadian Edition –Test Bank.pdf
, Principles of Macroeconomics 6th Canadian Edition
Principles
–Test
of Macroeconomics
Bank 6th Canadian Edition –Test Bank 2/17/2026
Principles of Macroeconomics 6th Canadian Edition – Original Test Bank 6e Mankiw Chapter: 0 1
12. For society, when is a good NOT scarce?
a. if at least one individual in society can obtain all he or she wants of the good
b. if firms are producing at full capacity
c. if all members of society can have all they want of the good
d. if those who have enough income can buy all they want of the good
MCQ ANSWER: C PTS: 1 DIF: Average REF: p. 4
BLM: Higher Order Principles of Macroeconomics 6th Canadian Edition – Original Test Bank12
13. Which of the following goods best meets the definition of scarcity?
a. air
b. water in the ocean
c. water in a city
d. wood in a forest
MCQ ANSWER: C PTS: 1 DIF: Average REF: p. 4
BLM: Remember Principles of Macroeconomics 6th Canadian Edition – Original Test Bank13
14. What does economics study?
a. business
b. how society manages its scarce resources
c. central planning
d. government regulation
MCQ ANSWER: B PTS: 1 DIF: Easy REF: p. 4
BLM: Remember Principles of Macroeconomics 6th Canadian Edition – Original Test Bank14
15. What does economics study?
a. how society manages its scarce resources
b. the government’s role in society
c. how to increase production
d. how firms make profits
MCQ ANSWER: A PTS: 1 DIF: Easy REF: p. 4
BLM: Remember Principles of Macroeconomics 6th Canadian Edition – Original Test Bank15
16. In most societies, who allocates resources?
a. a single central planner
b. those who own the resources
c. those firms that use resources to provide goods and services
d. the combined actions of millions of households and firms
MCQ ANSWER: D PTS: 1 DIF: Average REF: p. 4
BLM: Remember Principles of Macroeconomics 6th Canadian Edition – Original Test Bank16
17. What do economists study?
a. how people make decisions
b. how governments interact with one another
c. the forces and trends that affect only the economy as a whole
d. how societies change over time
MCQ ANSWER: D PTS: 1 DIF: Average REF: p. 4
BLM: Remember Principles of Macroeconomics 6th Canadian Edition – Original Test Bank17
3
Page 4 Principles of Macroeconomics 6th Canadian Edition –Test Bank.pdf
Principles
–Test
of Macroeconomics
Bank 6th Canadian Edition –Test Bank 2/17/2026
Principles of Macroeconomics 6th Canadian Edition –
Test Bank
TABLE OF CONTENTS
Introduction
6e Mankiw Chapter: 0 1: Ten Principles of Economics
6e Mankiw Chapter: 0 2: Thinking Like an Economist
6e Mankiw Chapter: 0 3: Interdependence and the Gains from Trade
Supply and Demand: How Markets Work
6e Mankiw Chapter: 0 4: The Market Forces of Supply and Demand
The Data of Macroeconomics
6e Mankiw Chapter: 0 5: Measuring a Nation’s Income
6e Mankiw Chapter: 0 6: Measuring the Cost of Living
The Real Economy in the Long Run
6e Mankiw Chapter: 0 7: Production and Growth
6e Mankiw Chapter: 0 8: Saving, Investment, and the Financial System
6e Mankiw Chapter: 0 9: Unemployment and Its Natural Rate
Money and Prices in the Long Run
6e Mankiw Chapter: 0 10: The Monetary System
6e Mankiw Chapter: 0 11: Money Growth and Inflation
The Macroeconomics of Open Economies
6e Mankiw Chapter: 0 12: Open-Economy Macroeconomics: Basic Concepts
6e Mankiw Chapter: 0 13: A Macroeconomic Theory of the Small Open Economy
Short-Run Economic Fluctuations
6e Mankiw Chapter: 0 14: Aggregate Demand and Aggregate Supply
6e Mankiw Chapter: 0 15: The Influence of Monetary and Fiscal Policy on Aggregate Demand
6e Mankiw Chapter: 0 16: The Short-Run Tradeoff between Inflation and Unemployment
Final Thoughts
6e Mankiw Chapter: 0 17: Five Debates over Macroeconomic Policy
Page 1 Principles of Macroeconomics 6th Canadian Edition –Test Bank.pdf
,Principles of Macroeconomics 6th Canadian Edition
Principles
–Test
of Macroeconomics
Bank 6th Canadian Edition –Test Bank 2/17/2026
6e Mankiw Chapter: 0 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
MCQ ANSWER: D PTS: 1 DIF: Easy REF: p. 3-4
BLM: Remember Principles of Macroeconomics 6th Canadian Edition – Original Test Bank1
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
MCQ ANSWER: B PTS: 1 DIF: Easy REF: p. 3-4
BLM: Remember Principles of Macroeconomics 6th Canadian Edition – Original Test Bank2
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.
MCQ ANSWER: D PTS: 1 DIF: Average REF: p. 3-4
BLM: Remember Principles of Macroeconomics 6th Canadian Edition – Original Test Bank3
4. What concept does economics primarily deal with?
a. scarcity
b. poverty
c. change
d. power
MCQ ANSWER: A PTS: 1 DIF: Easy REF: p. 4
BLM: Remember Principles of Macroeconomics 6th Canadian Edition – Original Test Bank4
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
MCQ ANSWER: C PTS: 1 DIF: Average REF: p. 4
BLM: Remember Principles of Macroeconomics 6th Canadian Edition – Original Test Bank5
Page 2 Principles of Macroeconomics 6th Canadian Edition –Test Bank.pdf
,Principles of Macroeconomics 6th Canadian Edition
Principles
–Test
of Macroeconomics
Bank 6th Canadian Edition –Test Bank 2/17/2026
Principles of Macroeconomics 6th Canadian Edition – Original Test Bank 6e Mankiw Chapter: 0 1
Mankiw
6.Why do both households and societies face many decisions?
a. because resources are scarce
b. because populations may increase or decrease over time
c. because wages for households and therefore society fluctuate with business cycles
d. because people, by nature, tend to disagree
MCQ ANSWER: A PTS: 1 DIF: Average REF: p. 4
BLM: Remember Principles of Macroeconomics 6th Canadian Edition – Original Test Bank6
7. When is a good considered scarce in a society?
a. when more output of the good is possible
b. when everyone in that society cannot have all they want of the good
c. when the government restricts production of the good
d. when only the richest people in the economy can buy all they want of the good
MCQ ANSWER: B PTS: 1 DIF: Average REF: p. 4
BLM: Remember Principles of Macroeconomics 6th Canadian Edition – Original Test Bank7
8. When does scarcity exist?
a. when there is less than an infinite amount of a resource or good
b. when society can meet the wants of every individual
c. when there is less of a good or resource available than people wish to have
d. when the government fails to produce goods
MCQ ANSWER: C PTS: 1 DIF: Average REF: p. 4
BLM: Remember Principles of Macroeconomics 6th Canadian Edition – Original Test Bank8
9. How are goods and services allocated in a market economy?
a. by government decisions
b. by giving each individual just enough for a decent standard of living
c. by the actions of all firms and consumers
d. by inherited rights and properties
MCQ ANSWER: C PTS: 1 DIF: Average REF: p. 4
BLM: Higher Order Principles of Macroeconomics 6th Canadian Edition – Original Test Bank9
10. Approximately what percentage of the world’s economies experience scarcity?
a. 25%
b. 50%
c. 75%
d. 100%
MCQ ANSWER: D PTS: 1 DIF: Easy REF: p. 4
BLM: Remember Principles of Macroeconomics 6th Canadian Edition – Original Test Bank10
11. What is the economy experiencing when a society cannot produce all the goods and services people
wish to have?
a. scarcity
b. communism
c. externalities
d. market failure
MCQ ANSWER: A PTS: 1 DIF: Easy REF: p. 4
BLM: Higher Order Principles of Macroeconomics 6th Canadian Edition – Original Test Bank11
2
Page 3 Principles of Macroeconomics 6th Canadian Edition –Test Bank.pdf
, Principles of Macroeconomics 6th Canadian Edition
Principles
–Test
of Macroeconomics
Bank 6th Canadian Edition –Test Bank 2/17/2026
Principles of Macroeconomics 6th Canadian Edition – Original Test Bank 6e Mankiw Chapter: 0 1
12. For society, when is a good NOT scarce?
a. if at least one individual in society can obtain all he or she wants of the good
b. if firms are producing at full capacity
c. if all members of society can have all they want of the good
d. if those who have enough income can buy all they want of the good
MCQ ANSWER: C PTS: 1 DIF: Average REF: p. 4
BLM: Higher Order Principles of Macroeconomics 6th Canadian Edition – Original Test Bank12
13. Which of the following goods best meets the definition of scarcity?
a. air
b. water in the ocean
c. water in a city
d. wood in a forest
MCQ ANSWER: C PTS: 1 DIF: Average REF: p. 4
BLM: Remember Principles of Macroeconomics 6th Canadian Edition – Original Test Bank13
14. What does economics study?
a. business
b. how society manages its scarce resources
c. central planning
d. government regulation
MCQ ANSWER: B PTS: 1 DIF: Easy REF: p. 4
BLM: Remember Principles of Macroeconomics 6th Canadian Edition – Original Test Bank14
15. What does economics study?
a. how society manages its scarce resources
b. the government’s role in society
c. how to increase production
d. how firms make profits
MCQ ANSWER: A PTS: 1 DIF: Easy REF: p. 4
BLM: Remember Principles of Macroeconomics 6th Canadian Edition – Original Test Bank15
16. In most societies, who allocates resources?
a. a single central planner
b. those who own the resources
c. those firms that use resources to provide goods and services
d. the combined actions of millions of households and firms
MCQ ANSWER: D PTS: 1 DIF: Average REF: p. 4
BLM: Remember Principles of Macroeconomics 6th Canadian Edition – Original Test Bank16
17. What do economists study?
a. how people make decisions
b. how governments interact with one another
c. the forces and trends that affect only the economy as a whole
d. how societies change over time
MCQ ANSWER: D PTS: 1 DIF: Average REF: p. 4
BLM: Remember Principles of Macroeconomics 6th Canadian Edition – Original Test Bank17
3
Page 4 Principles of Macroeconomics 6th Canadian Edition –Test Bank.pdf
