Test Bank Principles of Macroeconomics, 8th Canadian Edition by Mankiw
PR
O
FD
O
C
, 1
1. Which word comes from the Greek word for “one who manages a household”?
2. market b. bank
c. government d. economy
PR
ANSWER: d
1. From which of the following is the word “economy” derived?
2. one who consumes goods b. one who manages a household
O
c. one who participates in a market d. one who governs a country
FD
ANSWER: b
1. What do households and economies have in common?
2. They both must allocate scarce resources.
O
3. They both face difficulties saving money.
4. They both must sell the goods and services they produce.
5. They both must have a central decision maker.
C
ANSWER: a
,2. scarcity b. poverty
c. change d. power
ANSWER: a
1. What is NOT included in the decisions that every society must make?
2. what goods will be produced b. who will produce the goods
c. what determines consumer preferences d. who will consume the goods
ANSWER: c
1. Why do both households and societies face many decisions?
2. Resources are scarce.
3. Populations may fluctuate over time.
PR
4. Wages for households and therefore society fluctuate with business cycles.
5. People, by nature, tend to disagree.
O
ANSWER: a
1. When is a good considered scarce in a society?
FD
2. when more output of the good is possible
3. when everyone in that society cannot have all they want of the good
4. when the government restricts production of the good
5. when only the richest people in the economy can buy all they want of the good
O
ANSWER: b
C
1. When does scarcity exist?
2. when there is less than an infinite amount of a resource or good
3. when society can meet the wants of every individual
4. when there is less of a good or resource available than people wish to have
5. when the government fails to produce goods
ANSWER: c
, 1. How are goods and services allocated in a market economy?
2. by government decisions
3. by giving each individual just enough for a decent standard of living
4. by the actions of all firms and consumers
5. by inherited rights and properties
ANSWER: c
10. Approximately what percentage of the world’s economies experience scarcity? a. 30 b. 45
c. 60 d. 100
ANSWER: d
11. What is an economy experiencing when a society cannot produce all the goods and services people wish to have?
PR
1. scarcity b. economic growth
c. competition d. market failure
O
ANSWER: a
12.For society, when is a good NOT scarce?
FD
1. if at least one individual in society can obtain all he or she wants of the good
2. if firms are producing at full capacity
3. if all members of society can have all they want of the good
4. if those who have enough income can buy all they want of the good
O
C
ANSWER: c
13.Which good best meets the definition of scarcity?
1. air b. water in the ocean
c. electricity in a city d. wood in a forest
ANSWER: c
PR
O
FD
O
C
, 1
1. Which word comes from the Greek word for “one who manages a household”?
2. market b. bank
c. government d. economy
PR
ANSWER: d
1. From which of the following is the word “economy” derived?
2. one who consumes goods b. one who manages a household
O
c. one who participates in a market d. one who governs a country
FD
ANSWER: b
1. What do households and economies have in common?
2. They both must allocate scarce resources.
O
3. They both face difficulties saving money.
4. They both must sell the goods and services they produce.
5. They both must have a central decision maker.
C
ANSWER: a
,2. scarcity b. poverty
c. change d. power
ANSWER: a
1. What is NOT included in the decisions that every society must make?
2. what goods will be produced b. who will produce the goods
c. what determines consumer preferences d. who will consume the goods
ANSWER: c
1. Why do both households and societies face many decisions?
2. Resources are scarce.
3. Populations may fluctuate over time.
PR
4. Wages for households and therefore society fluctuate with business cycles.
5. People, by nature, tend to disagree.
O
ANSWER: a
1. When is a good considered scarce in a society?
FD
2. when more output of the good is possible
3. when everyone in that society cannot have all they want of the good
4. when the government restricts production of the good
5. when only the richest people in the economy can buy all they want of the good
O
ANSWER: b
C
1. When does scarcity exist?
2. when there is less than an infinite amount of a resource or good
3. when society can meet the wants of every individual
4. when there is less of a good or resource available than people wish to have
5. when the government fails to produce goods
ANSWER: c
, 1. How are goods and services allocated in a market economy?
2. by government decisions
3. by giving each individual just enough for a decent standard of living
4. by the actions of all firms and consumers
5. by inherited rights and properties
ANSWER: c
10. Approximately what percentage of the world’s economies experience scarcity? a. 30 b. 45
c. 60 d. 100
ANSWER: d
11. What is an economy experiencing when a society cannot produce all the goods and services people wish to have?
PR
1. scarcity b. economic growth
c. competition d. market failure
O
ANSWER: a
12.For society, when is a good NOT scarce?
FD
1. if at least one individual in society can obtain all he or she wants of the good
2. if firms are producing at full capacity
3. if all members of society can have all they want of the good
4. if those who have enough income can buy all they want of the good
O
C
ANSWER: c
13.Which good best meets the definition of scarcity?
1. air b. water in the ocean
c. electricity in a city d. wood in a forest
ANSWER: c
