TEST BANK
Economics
Roger A. Arnold
13th Edition
,Table of Contents
Chapter 01 What Economics Is About 2
Chapter 02 Production Possibilities Frontier Framework 72
Chapter 03 Supply and Demand: Theory 139
Chapter 04 Prices Free, Controlled, and Relative 232
Chapter 05 Supply, Demand, and Price: Applications 285
Chapter 06 Macroeconomic Measurements, Part I: Prices and Unemployment 321
Chapter 07 Macroeconomic Measurements, Part II: GDP and Real GDP 380
Chapter 08 Aggregate Demand and Aggregate Supply 440
Chapter 09 Classical Macroeconomics and the Self-Regulating Economy 524
Chapter 10 Keynesian Macroeconomics and Economic Instability: A Critique of the Self
Regulating Economy 597
Chapter 11 Fiscal Policy and the Federal Budget 684
Chapter 12 Money, Banking and the Financial System 751
Chapter 13 The Federal Reserve System 809
Chapter 14 Money and the Economy 878
Chapter 15 Monetary Policy 939
Chapter 16 Expectations Theory and the Economy 1015
Chapter 17 Economic Growth: Resources, Technology, Ideas, and Institutions 1081
Chapter 18 Debates in Macroeconomics Over the Role and Effects of Government 1123
Chapter 19 Elasticity 1163
Chapter 20 Consumer Choice and Behavioral Economics 1245
Chapter 21 Production and Costs 1321
Chapter 22 Perfect Competition 1421
Chapter 23 Monopoly 1498
Chapter 24 Monopolistic Competition, Oligopoly, and Game Theory 1578
Chapter 25 Government and Product Markets: Antitrust and Regulation 1647
Chapter 26 Factor Markets: With Emphasis on the Labor Market 1711
Chapter 27 Wages, Unions, and Labor 1786
Chapter 28 The Distribution of Income and Poverty 1845
Chapter 29 Interest, Rent, and Profit 1885
Chapter 30 Market Failure: Externalities, Public Goods, and Asymmetric Information 1968
Chapter 31 Public Choice and Special-Interest Group Politics 2047
Chapter 32 Building Theories to Explain Everyday Life: From Observations to Questions to
Theories to Predictions 2102
Chapter 33 International Trade 2129
Chapter 34 International Finance 2197
Chapter 35 The Economic Case For and Against Government: Five Topics Considered 2248
Chapter 36 Stocks, Bonds, Futures, and Options 2284
, ______________________________________________________________________________________________
Test Bank - Economics, 13th Edition (Arnold, 2019)
Chapter 01 - What Economics Is About
True / False
1. The branch of economics that studies the decisions made by individuals and firms is called macroeconomics.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
NATIONAL STANDARDS: United States - BUSPROG: Analytic
LOCAL STANDARDS: United States - OH - Default City - DISC: The study of economics and - DISC: The study of
economics and definitions of economics
KEYWORDS: Bloom's: Knowledge
DATE CREATED: 7/20/2017 10:55 AM
DATE MODIFIED: 7/20/2017 10:55 AM
2. Macroeconomics deals with issues involving large corporations, while microeconomics exclusively deals with issues
involving small businesses.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
NATIONAL STANDARDS: United States - BUSPROG: Analytic
LOCAL STANDARDS: United States - OH - Default City - DISC: The study of economics and - DISC: The study of
economics and definitions of economics
KEYWORDS: Bloom's: Comprehension
DATE CREATED: 7/20/2017 10:55 AM
DATE MODIFIED: 7/20/2017 10:55 AM
3. The effect of a decrease in interest rates upon economic growth is an example of positive economics.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: True / False
HAS VARIABLES: False
NATIONAL STANDARDS: United States - BUSPROG: Analytic
LOCAL STANDARDS: United States - OH - Default City - DISC: The study of economics and - DISC: The study of
economics and definitions of economics
KEYWORDS: Bloom's: Comprehension
DATE CREATED: 7/20/2017 10:55 AM
______________________________________________________________________________________________
1|Page
, ______________________________________________________________________________________________
Test Bank - Economics, 13th Edition (Arnold, 2019)
Chapter 01 - What Economics Is About
DATE MODIFIED: 7/20/2017 10:55 AM
4. Economists use the word utility to describe the satisfaction one receives from a good.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: True / False
HAS VARIABLES: False
NATIONAL STANDARDS: United States - BUSPROG: Analytic
LOCAL STANDARDS: United States - OH - Default City - DISC: Utility and consumer choic - DISC: Utility and
consumer choice
KEYWORDS: Bloom's: Knowledge
DATE CREATED: 7/20/2017 10:55 AM
DATE MODIFIED: 7/20/2017 10:55 AM
5. If variable X rises as a result of variable Y falling, then X and Y have an inverse relationship.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
NATIONAL STANDARDS: United States - BUSPROG: Analytic
LOCAL STANDARDS: United States - OH - Default City - DISC: Reading and interpreting g - DISC: Reading and
interpreting graphs
KEYWORDS: Bloom's: Comprehension
OTHER: Appendix A
DATE CREATED: 7/20/2017 10:55 AM
DATE MODIFIED: 7/20/2017 10:55 AM
6. In the textbook, economics is defined as the "science of scarcity."
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
NATIONAL STANDARDS: United States - BUSPROG: Analytic
LOCAL STANDARDS: United States - OH - Default City - DISC: Scarcity, tradeoffs, and o - DISC: Scarcity,
tradeoffs, and opportunity cost
KEYWORDS: Bloom's: Knowledge
DATE CREATED: 7/20/2017 10:55 AM
______________________________________________________________________________________________
2|Page
, ______________________________________________________________________________________________
Test Bank - Economics, 13th Edition (Arnold, 2019)
Chapter 01 - What Economics Is About
DATE MODIFIED: 7/27/2017 6:02 PM
7. In economics, capital is defined as a financial asset such as stocks and bonds.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: True / False
HAS VARIABLES: False
NATIONAL STANDARDS: United States - BUSPROG: Analytic
LOCAL STANDARDS: United States - OH - Default City - DISC: The study of economics and - DISC: The study of
economics and definitions of economics
KEYWORDS: Bloom's: Knowledge
DATE CREATED: 7/20/2017 10:55 AM
DATE MODIFIED: 7/27/2017 6:03 PM
8. A rationing device is a method used to resolve who gets what of available goods and resources.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
NATIONAL STANDARDS: United States - BUSPROG: Analytic
LOCAL STANDARDS: United States - OH - Default City - DISC: Scarcity, tradeoffs, and o - DISC: Scarcity,
tradeoffs, and opportunity cost
KEYWORDS: Bloom's: Knowledge
DATE CREATED: 7/20/2017 10:55 AM
DATE MODIFIED: 7/20/2017 10:55 AM
9. When a person is making a decision at the margin he or she is comparing the total benefits from that activity to the total
costs of the proposed action.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: True / False
HAS VARIABLES: False
NATIONAL STANDARDS: United States - BUSPROG: Analytic
LOCAL STANDARDS: United States - OH - Default City - DISC: Marginal costs & benefits
KEYWORDS: Bloom's: Knowledge
NOTES: New
DATE CREATED: 7/20/2017 10:55 AM
______________________________________________________________________________________________
3|Page
, ______________________________________________________________________________________________
Test Bank - Economics, 13th Edition (Arnold, 2019)
Chapter 01 - What Economics Is About
DATE MODIFIED: 7/27/2017 6:04 PM
10. Economists use the terms resource and input as synonyms.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: True / False
HAS VARIABLES: False
NATIONAL STANDARDS: United States - BUSPROG: Analytic
LOCAL STANDARDS: United States - OH - Default City - DISC: The study of economics and - DISC: The study of
economics and definitions of economics
KEYWORDS: Bloom's: Knowledge
DATE CREATED: 7/20/2017 10:55 AM
DATE MODIFIED: 7/20/2017 10:55 AM
11. To an economist, the terms factor and output are synonyms.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: True / False
HAS VARIABLES: False
NATIONAL STANDARDS: United States - BUSPROG: Analytic
LOCAL STANDARDS: United States - OH - Default City - DISC: The study of economics and - DISC: The study of
economics and definitions of economics
KEYWORDS: Bloom's: Knowledge
DATE CREATED: 7/20/2017 10:55 AM
DATE MODIFIED: 7/27/2017 6:06 PM
12. According to economists, one of the four broad categories of resources is money.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: True / False
HAS VARIABLES: False
NATIONAL STANDARDS: United States - BUSPROG: Analytic
LOCAL STANDARDS: United States - OH - Default City - DISC: The study of economics and - DISC: The study of
economics and definitions of economics
KEYWORDS: Bloom's: Knowledge
NOTES: New
DATE CREATED: 7/20/2017 10:55 AM
______________________________________________________________________________________________
4|Page
Economics
Roger A. Arnold
13th Edition
,Table of Contents
Chapter 01 What Economics Is About 2
Chapter 02 Production Possibilities Frontier Framework 72
Chapter 03 Supply and Demand: Theory 139
Chapter 04 Prices Free, Controlled, and Relative 232
Chapter 05 Supply, Demand, and Price: Applications 285
Chapter 06 Macroeconomic Measurements, Part I: Prices and Unemployment 321
Chapter 07 Macroeconomic Measurements, Part II: GDP and Real GDP 380
Chapter 08 Aggregate Demand and Aggregate Supply 440
Chapter 09 Classical Macroeconomics and the Self-Regulating Economy 524
Chapter 10 Keynesian Macroeconomics and Economic Instability: A Critique of the Self
Regulating Economy 597
Chapter 11 Fiscal Policy and the Federal Budget 684
Chapter 12 Money, Banking and the Financial System 751
Chapter 13 The Federal Reserve System 809
Chapter 14 Money and the Economy 878
Chapter 15 Monetary Policy 939
Chapter 16 Expectations Theory and the Economy 1015
Chapter 17 Economic Growth: Resources, Technology, Ideas, and Institutions 1081
Chapter 18 Debates in Macroeconomics Over the Role and Effects of Government 1123
Chapter 19 Elasticity 1163
Chapter 20 Consumer Choice and Behavioral Economics 1245
Chapter 21 Production and Costs 1321
Chapter 22 Perfect Competition 1421
Chapter 23 Monopoly 1498
Chapter 24 Monopolistic Competition, Oligopoly, and Game Theory 1578
Chapter 25 Government and Product Markets: Antitrust and Regulation 1647
Chapter 26 Factor Markets: With Emphasis on the Labor Market 1711
Chapter 27 Wages, Unions, and Labor 1786
Chapter 28 The Distribution of Income and Poverty 1845
Chapter 29 Interest, Rent, and Profit 1885
Chapter 30 Market Failure: Externalities, Public Goods, and Asymmetric Information 1968
Chapter 31 Public Choice and Special-Interest Group Politics 2047
Chapter 32 Building Theories to Explain Everyday Life: From Observations to Questions to
Theories to Predictions 2102
Chapter 33 International Trade 2129
Chapter 34 International Finance 2197
Chapter 35 The Economic Case For and Against Government: Five Topics Considered 2248
Chapter 36 Stocks, Bonds, Futures, and Options 2284
, ______________________________________________________________________________________________
Test Bank - Economics, 13th Edition (Arnold, 2019)
Chapter 01 - What Economics Is About
True / False
1. The branch of economics that studies the decisions made by individuals and firms is called macroeconomics.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
NATIONAL STANDARDS: United States - BUSPROG: Analytic
LOCAL STANDARDS: United States - OH - Default City - DISC: The study of economics and - DISC: The study of
economics and definitions of economics
KEYWORDS: Bloom's: Knowledge
DATE CREATED: 7/20/2017 10:55 AM
DATE MODIFIED: 7/20/2017 10:55 AM
2. Macroeconomics deals with issues involving large corporations, while microeconomics exclusively deals with issues
involving small businesses.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
NATIONAL STANDARDS: United States - BUSPROG: Analytic
LOCAL STANDARDS: United States - OH - Default City - DISC: The study of economics and - DISC: The study of
economics and definitions of economics
KEYWORDS: Bloom's: Comprehension
DATE CREATED: 7/20/2017 10:55 AM
DATE MODIFIED: 7/20/2017 10:55 AM
3. The effect of a decrease in interest rates upon economic growth is an example of positive economics.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: True / False
HAS VARIABLES: False
NATIONAL STANDARDS: United States - BUSPROG: Analytic
LOCAL STANDARDS: United States - OH - Default City - DISC: The study of economics and - DISC: The study of
economics and definitions of economics
KEYWORDS: Bloom's: Comprehension
DATE CREATED: 7/20/2017 10:55 AM
______________________________________________________________________________________________
1|Page
, ______________________________________________________________________________________________
Test Bank - Economics, 13th Edition (Arnold, 2019)
Chapter 01 - What Economics Is About
DATE MODIFIED: 7/20/2017 10:55 AM
4. Economists use the word utility to describe the satisfaction one receives from a good.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: True / False
HAS VARIABLES: False
NATIONAL STANDARDS: United States - BUSPROG: Analytic
LOCAL STANDARDS: United States - OH - Default City - DISC: Utility and consumer choic - DISC: Utility and
consumer choice
KEYWORDS: Bloom's: Knowledge
DATE CREATED: 7/20/2017 10:55 AM
DATE MODIFIED: 7/20/2017 10:55 AM
5. If variable X rises as a result of variable Y falling, then X and Y have an inverse relationship.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
NATIONAL STANDARDS: United States - BUSPROG: Analytic
LOCAL STANDARDS: United States - OH - Default City - DISC: Reading and interpreting g - DISC: Reading and
interpreting graphs
KEYWORDS: Bloom's: Comprehension
OTHER: Appendix A
DATE CREATED: 7/20/2017 10:55 AM
DATE MODIFIED: 7/20/2017 10:55 AM
6. In the textbook, economics is defined as the "science of scarcity."
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
NATIONAL STANDARDS: United States - BUSPROG: Analytic
LOCAL STANDARDS: United States - OH - Default City - DISC: Scarcity, tradeoffs, and o - DISC: Scarcity,
tradeoffs, and opportunity cost
KEYWORDS: Bloom's: Knowledge
DATE CREATED: 7/20/2017 10:55 AM
______________________________________________________________________________________________
2|Page
, ______________________________________________________________________________________________
Test Bank - Economics, 13th Edition (Arnold, 2019)
Chapter 01 - What Economics Is About
DATE MODIFIED: 7/27/2017 6:02 PM
7. In economics, capital is defined as a financial asset such as stocks and bonds.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: True / False
HAS VARIABLES: False
NATIONAL STANDARDS: United States - BUSPROG: Analytic
LOCAL STANDARDS: United States - OH - Default City - DISC: The study of economics and - DISC: The study of
economics and definitions of economics
KEYWORDS: Bloom's: Knowledge
DATE CREATED: 7/20/2017 10:55 AM
DATE MODIFIED: 7/27/2017 6:03 PM
8. A rationing device is a method used to resolve who gets what of available goods and resources.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
NATIONAL STANDARDS: United States - BUSPROG: Analytic
LOCAL STANDARDS: United States - OH - Default City - DISC: Scarcity, tradeoffs, and o - DISC: Scarcity,
tradeoffs, and opportunity cost
KEYWORDS: Bloom's: Knowledge
DATE CREATED: 7/20/2017 10:55 AM
DATE MODIFIED: 7/20/2017 10:55 AM
9. When a person is making a decision at the margin he or she is comparing the total benefits from that activity to the total
costs of the proposed action.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: True / False
HAS VARIABLES: False
NATIONAL STANDARDS: United States - BUSPROG: Analytic
LOCAL STANDARDS: United States - OH - Default City - DISC: Marginal costs & benefits
KEYWORDS: Bloom's: Knowledge
NOTES: New
DATE CREATED: 7/20/2017 10:55 AM
______________________________________________________________________________________________
3|Page
, ______________________________________________________________________________________________
Test Bank - Economics, 13th Edition (Arnold, 2019)
Chapter 01 - What Economics Is About
DATE MODIFIED: 7/27/2017 6:04 PM
10. Economists use the terms resource and input as synonyms.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: True / False
HAS VARIABLES: False
NATIONAL STANDARDS: United States - BUSPROG: Analytic
LOCAL STANDARDS: United States - OH - Default City - DISC: The study of economics and - DISC: The study of
economics and definitions of economics
KEYWORDS: Bloom's: Knowledge
DATE CREATED: 7/20/2017 10:55 AM
DATE MODIFIED: 7/20/2017 10:55 AM
11. To an economist, the terms factor and output are synonyms.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: True / False
HAS VARIABLES: False
NATIONAL STANDARDS: United States - BUSPROG: Analytic
LOCAL STANDARDS: United States - OH - Default City - DISC: The study of economics and - DISC: The study of
economics and definitions of economics
KEYWORDS: Bloom's: Knowledge
DATE CREATED: 7/20/2017 10:55 AM
DATE MODIFIED: 7/27/2017 6:06 PM
12. According to economists, one of the four broad categories of resources is money.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: True / False
HAS VARIABLES: False
NATIONAL STANDARDS: United States - BUSPROG: Analytic
LOCAL STANDARDS: United States - OH - Default City - DISC: The study of economics and - DISC: The study of
economics and definitions of economics
KEYWORDS: Bloom's: Knowledge
NOTES: New
DATE CREATED: 7/20/2017 10:55 AM
______________________________________________________________________________________________
4|Page
