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TEST ITEM FILE 3
CHAPTERS 10 – 15
for
Luke Armstrong Barbara Moore Mark Rush
Lee College University of Central Florida University of Florida
Pearson Addison-Wesley
to py is
’u h
rs rig
uc o rk
tr S c o
Boston San Francisco New York
ns U s w
London Toronto Sydney Tokyo Singapore Madrid
r i y hi
fo d b T
Mexico City Munich Paris Cape Town Hong Kong Montreal
is e
d ect
an rot
p
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This work is protected by United States copyright laws and is provided solely
for the use of instructors in teaching their courses and assessing student
learning. Dissemination or sale of any part of this work (including on the
World Wide Web) will destroy the integrity of the work and is not permit-
ted. The work and materials from it should never be made available to
students except by instructors using the accompanying text in their
classes. All recipients of this work are expected to abide by these
restrictions and to honor the intended pedagogical purposes and the needs of
other instructors who rely on these materials.
Senior Acquisitions Editor: Adrienne D’Ambrosio
Editorial Project Manager: Jill Kolongowski
Associate Production Project Manager: Alison Eusden
Senior Manufacturing Buyer: Carol Melville
Copyright© 2012, 2010, 2008, 2005, 2003 Pearson Education, Inc., 75 Arlington Street, Boston, MA 02116.
Pearson Addison-Wesley. All rights reserved. Printed in the United States of America. This publication is
protected by copyright and permission should be obtained from the publisher prior to any prohibited repro-
duction, storage in a retrieval system, or transmission in any form or by any means, electronic, mechanical,
photocopying, recording, or likewise. For information regarding permission(s), write to: Rights and
Permissions Department.
This work is protected by United States copyright laws and is provided solely for the use of instructors
in teaching their courses and assessing student learning. Dissemination or sale of any part of this work
(including on the World Wide Web) will destroy the integrity of the work and is not permitted. The work
and materials from it should never be made available to students except by instructors using the accompany-
ing text in their classes. All recipients of this work are expected to abide by these restrictions and to
honor the intended pedagogical purposes and the needs of other instructors who rely on these materials.
Pearson Addison-Wesley™ is a trademark of Pearson Education, Inc.
1 2 3 4 5 6 OPM 15 14 13 12 11
ISBN-13: 978-0-13-139457-5
ISBN-10: 0-13-139457-6
, P r e f a c e
Introduction Tenth Edition Revisions
This book is one of six test banks, each carefully crafted We have made significant revisions in preparing the
to be part of the most complete package of test banks test banks for the Tenth Edition:
ever offered to support a beginning economics text- All the questions have been reviewed to ensure
book. Three of the test banks are designed to accompa- consistency with the text as well as clarity for the
ny Michael Parkin’s Microeconomics, Tenth Edition students. Questions dealing with material elimi-
and three accompany Michael Parkin’s Macroeconomics, nated from the ninth edition of the textbook were
Tenth Edition. The complete set of six books compris- deleted and some duplicative questions were elim-
es Microeconomics Test Item File, Volumes I, II, and III inated. New questions were added to cover both
and Macroeconomics Test Item File, Volumes I, II, and the new as well as the old topics in the tenth edi-
III. Volume 1 of the Microeconomics Test Item File con- tion.
tains questions from Chapters 1 through 7; volume 2
A large number of the questions have been re-
contains questions from Chapters 8 through 13; and
worded to enhance clarity. The AACSB standards
volume 3 contains questions from Chapters 14 through
were checked for accuracy and, if necessary,
20. Volume 1 of the Macroeconomics Test Item File
changed.
contains questions from Chapters 1 through 5; volume
2 contains questions from Chapters 6 through 9; and The artwork was reviewed and changed to remain
volume 3 contains questions from Chapters 10 through consistent with the tenth edition of the textbook.
15. To the greatest extent possible, the questions have
been ordered so that they follow the order the ma-
Test Bank Principles terial is presented in the corresponding textbook
Three principles guided the writing and revising of the chapter. If you assign only part of a chapter to the
questions: students, it will be easy to select questions from
that specific part.
The questions should be “fail-safe” insofar as the
topic of the questions has been explained in the Though not strictly a new revision, it remains
textbook. worthwhile to note that the test banks are available
in a user-friendly computerized test bank.
A question should not be a guessing game forcing
the students to puzzle out what the question asks.
Multiple Choice Questions
An instructor must be absolutely secure in the
knowledge that each question contains material Taken together, there are nearly 15,000 multiple
covered in the textbook. choice in the test banks. These questions have been
I endeavored to insure that all questions meet all the written by many contributors. I have edited the ques-
criteria so that they are, as Donald Dutkowsky put it, tions to ensure that each conformed with the writing
“bullet proof.” style established in the book because this style has been
© 2012 Pearson Education, Inc. Publishing as Addison Wesley
, IV PREFACE
carefully crafted for maximum student comprehension. pendent. These questions can be used on exam. How-
I also arranged the questions so that they are in the ever, they may also be given to the students and used as
same order that the topics are presented within the homework. I think the best way to view these questions
textbook. Among questions dealing with a similar top- is as a valuable supplement to the outstanding ques-
ic, the questions are ordered with non-numerical ques- tions already in the textbook.
tions first, questions dealing with a numerical table
second, and questions dealing with a figure third.
Final Comments
In addition to questions drawn directly from the text,
there also are multiple choice questions that are either I have been teaching principles classes for over two
the same as or else closely related to the questions in decades, have written hundreds of exams, and won
the Study Guide and on the MyEconLab student website several teaching awards. Nonetheless, I was stunned by
for the book. Each of these questions is identified as to the quality of the questions in the test banks. I lost
its source. If you have assigned these student supple- count of the number of times that I marveled at a ques-
ments to your class, you have the means to “reward” tion and wished that I had thought of it. While creat-
students who are using them by asking questions draw- ing this test bank took significantly more effort than
ing on what they have been studying. preparing an ordinary test bank, I am sure that the
quality you will find made the task worthwhile.
Each chapter has “News Based Questions.” These ques-
tions feature a brief news clip or a sentence with some Just as Sir Isaac Newton stood on the shoulders of the
news or facts and then question(s) based on that infor- giants who came before him, so, too do these test banks
mation. These are practical questions that stress apply- reflect the superb work of the authors who initially
ing the economics the students are learning to events wrote and compiled them. It is entirely fitting to thank
taking place in the world around them. them:
The questions in each section of the chapter are based Peter von Allmen of Moravian College
on the material covered only in that section. However Sue Bartlett of the University of South Florida
we have also included “Part Review” multiple choice Kevin Carey of American University
questions. These sections feature questions that are Leo Chan of the University of Kansas
drawn from material covered in more than one chapter Donald H. Dutkowsky of Syracuse University
in each Part. You can use these questions if you want Andrew Foshee of McNeese State University
more integrative questions that lead students to think
James Giordano of Villanova University
about broader issues.
John Graham of Rutgers University
Jill Boylston Herndon of the University of Florida
Other Styles of Questions Veronica Z. Kalich of Baldwin-Wallace College
In addition to multiple choice questions, each chapter Sang Lee of Southeastern Louisiana University
also features essay questions, numeric questions, graph- William Mosher of Clark University
ing questions, true or false questions, and extended Melinda Nish of Salt Lake Community College
problems. Within each chapter, you will find each type
Terry Olson of Truman State University
of question grouped together—that is, the essay ques-
Ed Price of Oklahoma State University
tions for each chapter are first, followed by the numer-
ic/graphing questions for each chapter, and so on. In Jeff Reynolds of Northern Illinois University
this fashion, if you want to write a strictly essay ques- Rochelle L. Ruffer of Youngstown State University
tion exam, it will be easy to do so. Of course, within Virginia Shingleton of Valparaiso University
each chapter, the questions are arranged in the same Della Sue of Marist College
order that the topics appear in the textbook. Robert Whaples of Wake Forest University
For each chapter there are 3 to 5 extended problems. Peter A. Zaleski of Villanova University
These questions are, as the name implies, longer ques- Carol Dole, of Jacksonville University
tions. Sometimes the questions for a chapter build
Constantin Oglobin of Georgia Southern
upon each other; other times the questions are inde-
University
© 2012 Pearson Education, Inc. Publishing as Addison Wesley
TEST ITEM FILE 3
CHAPTERS 10 – 15
for
Luke Armstrong Barbara Moore Mark Rush
Lee College University of Central Florida University of Florida
Pearson Addison-Wesley
to py is
’u h
rs rig
uc o rk
tr S c o
Boston San Francisco New York
ns U s w
London Toronto Sydney Tokyo Singapore Madrid
r i y hi
fo d b T
Mexico City Munich Paris Cape Town Hong Kong Montreal
is e
d ect
an rot
p
,Macro_TIF3_PARKIN_1394576_TTL.qxd:Layout 1 3/25/11 5:15 PM Page 2
This work is protected by United States copyright laws and is provided solely
for the use of instructors in teaching their courses and assessing student
learning. Dissemination or sale of any part of this work (including on the
World Wide Web) will destroy the integrity of the work and is not permit-
ted. The work and materials from it should never be made available to
students except by instructors using the accompanying text in their
classes. All recipients of this work are expected to abide by these
restrictions and to honor the intended pedagogical purposes and the needs of
other instructors who rely on these materials.
Senior Acquisitions Editor: Adrienne D’Ambrosio
Editorial Project Manager: Jill Kolongowski
Associate Production Project Manager: Alison Eusden
Senior Manufacturing Buyer: Carol Melville
Copyright© 2012, 2010, 2008, 2005, 2003 Pearson Education, Inc., 75 Arlington Street, Boston, MA 02116.
Pearson Addison-Wesley. All rights reserved. Printed in the United States of America. This publication is
protected by copyright and permission should be obtained from the publisher prior to any prohibited repro-
duction, storage in a retrieval system, or transmission in any form or by any means, electronic, mechanical,
photocopying, recording, or likewise. For information regarding permission(s), write to: Rights and
Permissions Department.
This work is protected by United States copyright laws and is provided solely for the use of instructors
in teaching their courses and assessing student learning. Dissemination or sale of any part of this work
(including on the World Wide Web) will destroy the integrity of the work and is not permitted. The work
and materials from it should never be made available to students except by instructors using the accompany-
ing text in their classes. All recipients of this work are expected to abide by these restrictions and to
honor the intended pedagogical purposes and the needs of other instructors who rely on these materials.
Pearson Addison-Wesley™ is a trademark of Pearson Education, Inc.
1 2 3 4 5 6 OPM 15 14 13 12 11
ISBN-13: 978-0-13-139457-5
ISBN-10: 0-13-139457-6
, P r e f a c e
Introduction Tenth Edition Revisions
This book is one of six test banks, each carefully crafted We have made significant revisions in preparing the
to be part of the most complete package of test banks test banks for the Tenth Edition:
ever offered to support a beginning economics text- All the questions have been reviewed to ensure
book. Three of the test banks are designed to accompa- consistency with the text as well as clarity for the
ny Michael Parkin’s Microeconomics, Tenth Edition students. Questions dealing with material elimi-
and three accompany Michael Parkin’s Macroeconomics, nated from the ninth edition of the textbook were
Tenth Edition. The complete set of six books compris- deleted and some duplicative questions were elim-
es Microeconomics Test Item File, Volumes I, II, and III inated. New questions were added to cover both
and Macroeconomics Test Item File, Volumes I, II, and the new as well as the old topics in the tenth edi-
III. Volume 1 of the Microeconomics Test Item File con- tion.
tains questions from Chapters 1 through 7; volume 2
A large number of the questions have been re-
contains questions from Chapters 8 through 13; and
worded to enhance clarity. The AACSB standards
volume 3 contains questions from Chapters 14 through
were checked for accuracy and, if necessary,
20. Volume 1 of the Macroeconomics Test Item File
changed.
contains questions from Chapters 1 through 5; volume
2 contains questions from Chapters 6 through 9; and The artwork was reviewed and changed to remain
volume 3 contains questions from Chapters 10 through consistent with the tenth edition of the textbook.
15. To the greatest extent possible, the questions have
been ordered so that they follow the order the ma-
Test Bank Principles terial is presented in the corresponding textbook
Three principles guided the writing and revising of the chapter. If you assign only part of a chapter to the
questions: students, it will be easy to select questions from
that specific part.
The questions should be “fail-safe” insofar as the
topic of the questions has been explained in the Though not strictly a new revision, it remains
textbook. worthwhile to note that the test banks are available
in a user-friendly computerized test bank.
A question should not be a guessing game forcing
the students to puzzle out what the question asks.
Multiple Choice Questions
An instructor must be absolutely secure in the
knowledge that each question contains material Taken together, there are nearly 15,000 multiple
covered in the textbook. choice in the test banks. These questions have been
I endeavored to insure that all questions meet all the written by many contributors. I have edited the ques-
criteria so that they are, as Donald Dutkowsky put it, tions to ensure that each conformed with the writing
“bullet proof.” style established in the book because this style has been
© 2012 Pearson Education, Inc. Publishing as Addison Wesley
, IV PREFACE
carefully crafted for maximum student comprehension. pendent. These questions can be used on exam. How-
I also arranged the questions so that they are in the ever, they may also be given to the students and used as
same order that the topics are presented within the homework. I think the best way to view these questions
textbook. Among questions dealing with a similar top- is as a valuable supplement to the outstanding ques-
ic, the questions are ordered with non-numerical ques- tions already in the textbook.
tions first, questions dealing with a numerical table
second, and questions dealing with a figure third.
Final Comments
In addition to questions drawn directly from the text,
there also are multiple choice questions that are either I have been teaching principles classes for over two
the same as or else closely related to the questions in decades, have written hundreds of exams, and won
the Study Guide and on the MyEconLab student website several teaching awards. Nonetheless, I was stunned by
for the book. Each of these questions is identified as to the quality of the questions in the test banks. I lost
its source. If you have assigned these student supple- count of the number of times that I marveled at a ques-
ments to your class, you have the means to “reward” tion and wished that I had thought of it. While creat-
students who are using them by asking questions draw- ing this test bank took significantly more effort than
ing on what they have been studying. preparing an ordinary test bank, I am sure that the
quality you will find made the task worthwhile.
Each chapter has “News Based Questions.” These ques-
tions feature a brief news clip or a sentence with some Just as Sir Isaac Newton stood on the shoulders of the
news or facts and then question(s) based on that infor- giants who came before him, so, too do these test banks
mation. These are practical questions that stress apply- reflect the superb work of the authors who initially
ing the economics the students are learning to events wrote and compiled them. It is entirely fitting to thank
taking place in the world around them. them:
The questions in each section of the chapter are based Peter von Allmen of Moravian College
on the material covered only in that section. However Sue Bartlett of the University of South Florida
we have also included “Part Review” multiple choice Kevin Carey of American University
questions. These sections feature questions that are Leo Chan of the University of Kansas
drawn from material covered in more than one chapter Donald H. Dutkowsky of Syracuse University
in each Part. You can use these questions if you want Andrew Foshee of McNeese State University
more integrative questions that lead students to think
James Giordano of Villanova University
about broader issues.
John Graham of Rutgers University
Jill Boylston Herndon of the University of Florida
Other Styles of Questions Veronica Z. Kalich of Baldwin-Wallace College
In addition to multiple choice questions, each chapter Sang Lee of Southeastern Louisiana University
also features essay questions, numeric questions, graph- William Mosher of Clark University
ing questions, true or false questions, and extended Melinda Nish of Salt Lake Community College
problems. Within each chapter, you will find each type
Terry Olson of Truman State University
of question grouped together—that is, the essay ques-
Ed Price of Oklahoma State University
tions for each chapter are first, followed by the numer-
ic/graphing questions for each chapter, and so on. In Jeff Reynolds of Northern Illinois University
this fashion, if you want to write a strictly essay ques- Rochelle L. Ruffer of Youngstown State University
tion exam, it will be easy to do so. Of course, within Virginia Shingleton of Valparaiso University
each chapter, the questions are arranged in the same Della Sue of Marist College
order that the topics appear in the textbook. Robert Whaples of Wake Forest University
For each chapter there are 3 to 5 extended problems. Peter A. Zaleski of Villanova University
These questions are, as the name implies, longer ques- Carol Dole, of Jacksonville University
tions. Sometimes the questions for a chapter build
Constantin Oglobin of Georgia Southern
upon each other; other times the questions are inde-
University
© 2012 Pearson Education, Inc. Publishing as Addison Wesley
