,TESTBANK FOR Principles of Macroeconomics, 14th
edition Karl E. Case
Notes
1- The file is chapter after chapter.
2- We have shown you few pages sample.
3- The file contains all Appendix and Excel sheet
if it exists.
4- We have all what you need, we make update
at every time. There are many new editions
waiting you.
5- If you think you purchased the wrong file You
can contact us at every time, we can replace it
with true one.
Our email:
,Principles of Macroeconomics, 14e (Case/Fair/Oster)
Chapter 1 The Scope and Method of Economics
1.1 Why Study Economics?
1) Which of the following is not listed in the book as a reason to study economics?
A) to learn a way of thinking
B) to understand society
C) to be an informed citizen
D) to learn how to make lots of money
Answer: D
Diff: 1
Topic: Why Study Economics?
Status: 13e question
Learning Outcome: Micro-1
2) Among the fundamental concepts in economics is
A) opportunity cost.
B) marginalism.
C) efficient markets.
D) all of the above
Answer: D
Diff: 1
Topic: Why Study Economics?
Status: New question
Learning Outcome: Micro-1
3) Which of the following is the best definition of economics?
A) the study of how individuals and societies choose to use the scarce resources that nature and previous
generations have provided
B) the study of how consumers spend their income
C) the study of how business firms decide what inputs to hire and what outputs to produce
D) the study of how the federal government allocates tax dollars
Answer: A
Diff: 1
Topic: Why Study Economics?
Status: 13e question
Learning Outcome: Micro-1
1
Copyright © 2026 Pearson Education, Inc.
,4) The rise of the modern factory system in England during the late eighteenth and early nineteenth
centuries is known as the
A) Great Migration.
B) Industrial Revolution.
C) Wealth of Nations.
D) Dark Ages.
Answer: B
Diff: 1
Topic: Why Study Economics?
Status: 13e question
Learning Outcome: Micro-1
5) Which of the following statements is not correct?
A) Economics is a behavioral science.
B) In large measure, economics is the study of how people make choices.
C) If poverty were eliminated, there would be no reason to study economics.
D) Economic analysis can be used to explain how both individuals and societies make decisions.
Answer: C
Diff: 1
Topic: Why Study Economics?
Status: 13e question
Learning Outcome: Micro-1
6) The study of economics
A) is a very narrow endeavor.
B) is a way of analyzing decision-making processes caused by scarcity.
C) is concerned with proving that capitalism is better than socialism.
D) focuses on how a business should function.
Answer: B
Diff: 1
Topic: Why Study Economics?
Status: 13e question
Learning Outcome: Micro-1
7) Which of the following is not one of the three fundamental concepts of economics?
A) profit maximization
B) marginalism
C) opportunity cost
D) the working of efficient markets
Answer: A
Diff: 1
Topic: Why Study Economics?
Status: 13e question
Learning Outcome: Micro-1
2
Copyright © 2026 Pearson Education, Inc.
,8) Suppose that you purchased a ticket to a jazz festival for $100 from an online ticket broker. Once you
arrived at the festival, you discovered that parking costs you an additional $15. In this situation, the
additional $15 you pay for parking is an example of
A) an economic loss.
B) opportunity cost.
C) marginal cost.
D) an inefficient cost.
Answer: C
Diff: 2
Topic: Why Study Economics?
Status: 13e question
Learning Outcome: Micro-1
9) You have decided that you want to attend a costume party as Black Panther. You estimate that it will
cost $40 to assemble your costume. After spending $40 on the costume, you realize that the additional
pieces you need will cost you $25 more. The marginal cost of completing the costume is
A) $15.
B) $25.
C) $40.
D) $65.
Answer: B
Diff: 2
Topic: Why Study Economics?
Status: 13e question
Learning Outcome: Micro-1
10) The concept of opportunity cost
A) is relevant only to economics.
B) can be applied to the analysis of any decision-making process.
C) applies to consumers but not to firms.
D) refers only to actual payments and incomes.
Answer: B
Diff: 1
Topic: Why Study Economics?
Status: 13e question
Learning Outcome: Micro-1
11) Opportunity cost is
A) that which we forgo, or give up, when we make a choice or a decision.
B) a cost that cannot be avoided, regardless of what is done in the future.
C) the additional cost of producing an additional unit of output.
D) the additional cost of buying an additional unit of a product.
Answer: A
Diff: 1
Topic: Why Study Economics?
Status: 13e question
Learning Outcome: Micro-1
3
Copyright © 2026 Pearson Education, Inc.
,12) The reason that opportunity costs arise is that
A) an economy relies on money to facilitate exchange of goods and services.
B) resources are scarce.
C) there are no alternative decisions that could be made.
D) people have limited wants.
Answer: B
Diff: 1
Topic: Why Study Economics?
Status: 13e question
Learning Outcome: Micro-1
13) Which of the following is not an opportunity cost of attending college?
A) the tuition you pay
B) the income you could have earned if you didn't attend college
C) the alternative uses of the time you spend studying
D) the cost of the food that you consume while you are attending college
Answer: D
Diff: 2
Topic: Why Study Economics?
Status: 13e modified
Learning Outcome: Micro-1
14) If your tuition is $5,000 this semester, your books cost $600, you can only work 20 rather than 40 hours
per week during the 15 weeks you are taking classes and you make $15 per hour, and your room and
board is $3,000 this semester (same as if not attending college), then your opportunity cost of attending
college this semester is
A) $5,600.
B) $5,900.
C) $10,100.
D) $11,600.
Answer: C
Diff: 3
Topic: Why Study Economics?
Status: 13e question
Learning Outcome: Micro-1
4
Copyright © 2026 Pearson Education, Inc.
,15) If your tuition is $25,000 this semester, your books cost $1,500, you can only work 20 rather than 40
hours per week during the 15 weeks you are taking classes and you make $15 per hour, and your room
and board is $7,500 this semester (same as if not attending college), then your opportunity cost of
attending college this semester is
A) $26,500.
B) $26,800.
C) $31,000.
D) $38,500.
Answer: C
Diff: 3
Topic: Why Study Economics?
Status: 13e question
Learning Outcome: Micro-1
16) If you own a building and you decide to use that building to open a book store,
A) there is no opportunity cost of using this building for a book store because you own it.
B) there is an opportunity cost of using this building for a book store because it could have been used in
other ways.
C) the opportunity costs equal the cost of inventory.
D) the only cost relevant to this decision is the price you paid for the building.
Answer: B
Diff: 2
Topic: Why Study Economics?
Status: 13e question
Learning Outcome: Micro-1
17) You own the video game Grand Theft Auto: VI. The opportunity cost of playing this game for the
second time
A) is zero.
B) is one-half the cost of the game, as this is the second time you have played it.
C) is the value of the alternative use of the time you spend playing the game.
D) cannot be calculated.
Answer: C
Diff: 2
Topic: Why Study Economics?
Status: 13e modified
Learning Outcome: Micro-1
18) That which we forgo, or give up, when we make a choice or decision is called
A) out-of-pocket cost.
B) marginal cost.
C) real cost.
D) opportunity cost.
Answer: D
Diff: 1
Topic: Why Study Economics?
Status: 13e question
Learning Outcome: Micro-1
5
Copyright © 2026 Pearson Education, Inc.
,19) Economists often refer to risk-free ventures as
A) efficient market outcomes.
B) profit opportunities.
C) those with no opportunity costs.
D) break-even propositions.
Answer: B
Diff: 1
Topic: Why Study Economics?
Status: 13e question
Learning Outcome: Micro-1
20) You are having a party tonight and need to order some pizzas. If you can buy 9 pizzas for $126 or you
could buy 10 pizzas for $130 with the promotion currently going on, then the marginal cost of the tenth
pizza is
A) $4.
B) $13.
C) $14.
D) $130.
Answer: A
Diff: 2
Topic: Why Study Economics?
Status: 13e modified
Learning Outcome: Micro-1
21) If you eat at a sushi restaurant that charges $20 for its all-you-can-eat sushi special, then the marginal
cost of your 10th piece of sushi is
A) zero.
B) $2.
C) $200.
D) $2,000.
Answer: A
Diff: 2
Topic: Why Study Economics?
Status: 13e question
Learning Outcome: Micro-1
22) A market in which profit opportunities are eliminated almost instantaneously is
A) a laissez-faire market.
B) a capitalist market.
C) a socialist market.
D) an efficient market.
Answer: D
Diff: 1
Topic: Why Study Economics?
Status: 13e question
Learning Outcome: Micro-1
6
Copyright © 2026 Pearson Education, Inc.
,23) If information is less costly and more easily available, then usually this
A) makes markets more efficient.
B) makes markets less efficient.
C) increases profit opportunities.
D) increases the opportunity cost of acquiring more information.
Answer: A
Diff: 2
Topic: Why Study Economics?
Status: 13e question
Learning Outcome: Micro-1
24) An efficient market is a market in which
A) everyone always gets what they want.
B) profit opportunities are eliminated almost instantaneously.
C) profits are always very high and persistent.
D) opportunity costs are zero.
Answer: B
Diff: 2
Topic: Why Study Economics?
Status: 13e question
Learning Outcome: Micro-1
25) According to the Economics in Practice, when rains in rural India are plentiful, the opportunity cost of
having someone out of the labor force, and therefore unable to work in agricultural production,
A) increases.
B) decreases.
C) remains unchanged.
D) is zero, because the person is out of the labor force.
Answer: A
Diff: 2
Topic: Why Study Economics?: Economics in Practice
Status: 13e modified
Learning Outcome: Micro-1
26) According to the Economics in Practice, when rural India is suffering from a drought where
agricultural output is low, the opportunity cost of having someone out of the labor force, and therefore
unable to work in agricultural production, is
A) high
B) low.
C) infinite.
D) zero, because the person is out of the labor force.
Answer: B
Diff: 2
Topic: Why Study Economics?: Economics in Practice
Status: 13e modified
Learning Outcome: Micro-1
7
Copyright © 2026 Pearson Education, Inc.
, 27) According to the Economics in Practice, in terms of wages and job availability, those students
graduating during a recession with a degree in economics are ________ those graduating with a degree in
sociology.
A) better off than
B) worse off than
C) affected equally to
D) There seems to be no correlation between a student's major and wages or employment during a
recession.
Answer: A
Diff: 1
Topic: Why Study Economics?: Economics in Practice
Status: 13e modified
Learning Outcome: Micro-1
28) According to the Economics in Practice, a majority of the $10 retail value of the Barbie doll
A) is needed to pay for the cost of the Taiwanese plastic used to make the dolls.
B) pays for the Chinese labor used to assemble the doll.
C) is captured in the United States.
D) goes to the Japanese manufacturer of the hair which is used for the dolls.
Answer: C
Diff: 2
Topic: Why Study Economics?: Economics in Practice
Status: 13e modified
Learning Outcome: Micro-1
29) The opportunity cost to Mattel of having its Barbie doll assembled in China is
A) the low wages paid to Chinese workers.
B) the $2 export value the doll carries when it leaves Hong Kong.
C) the $8 of its $10 retail value which is captured in the United States.
D) having the Barbie doll assembled in the next best available location.
Answer: D
Diff: 2
Topic: Why Study Economics?: Economics in Practice
Status: 13e modified
Learning Outcome: Micro-1
30) The reasons to study economics include which of the following?
A) to be an informed citizen
B) to understand society
C) to learn a way of thinking
D) all of the above
Answer: D
Diff: 1
Topic: Why Study Economics?
Status: 13e question
Learning Outcome: Micro-1
8
Copyright © 2026 Pearson Education, Inc.
edition Karl E. Case
Notes
1- The file is chapter after chapter.
2- We have shown you few pages sample.
3- The file contains all Appendix and Excel sheet
if it exists.
4- We have all what you need, we make update
at every time. There are many new editions
waiting you.
5- If you think you purchased the wrong file You
can contact us at every time, we can replace it
with true one.
Our email:
,Principles of Macroeconomics, 14e (Case/Fair/Oster)
Chapter 1 The Scope and Method of Economics
1.1 Why Study Economics?
1) Which of the following is not listed in the book as a reason to study economics?
A) to learn a way of thinking
B) to understand society
C) to be an informed citizen
D) to learn how to make lots of money
Answer: D
Diff: 1
Topic: Why Study Economics?
Status: 13e question
Learning Outcome: Micro-1
2) Among the fundamental concepts in economics is
A) opportunity cost.
B) marginalism.
C) efficient markets.
D) all of the above
Answer: D
Diff: 1
Topic: Why Study Economics?
Status: New question
Learning Outcome: Micro-1
3) Which of the following is the best definition of economics?
A) the study of how individuals and societies choose to use the scarce resources that nature and previous
generations have provided
B) the study of how consumers spend their income
C) the study of how business firms decide what inputs to hire and what outputs to produce
D) the study of how the federal government allocates tax dollars
Answer: A
Diff: 1
Topic: Why Study Economics?
Status: 13e question
Learning Outcome: Micro-1
1
Copyright © 2026 Pearson Education, Inc.
,4) The rise of the modern factory system in England during the late eighteenth and early nineteenth
centuries is known as the
A) Great Migration.
B) Industrial Revolution.
C) Wealth of Nations.
D) Dark Ages.
Answer: B
Diff: 1
Topic: Why Study Economics?
Status: 13e question
Learning Outcome: Micro-1
5) Which of the following statements is not correct?
A) Economics is a behavioral science.
B) In large measure, economics is the study of how people make choices.
C) If poverty were eliminated, there would be no reason to study economics.
D) Economic analysis can be used to explain how both individuals and societies make decisions.
Answer: C
Diff: 1
Topic: Why Study Economics?
Status: 13e question
Learning Outcome: Micro-1
6) The study of economics
A) is a very narrow endeavor.
B) is a way of analyzing decision-making processes caused by scarcity.
C) is concerned with proving that capitalism is better than socialism.
D) focuses on how a business should function.
Answer: B
Diff: 1
Topic: Why Study Economics?
Status: 13e question
Learning Outcome: Micro-1
7) Which of the following is not one of the three fundamental concepts of economics?
A) profit maximization
B) marginalism
C) opportunity cost
D) the working of efficient markets
Answer: A
Diff: 1
Topic: Why Study Economics?
Status: 13e question
Learning Outcome: Micro-1
2
Copyright © 2026 Pearson Education, Inc.
,8) Suppose that you purchased a ticket to a jazz festival for $100 from an online ticket broker. Once you
arrived at the festival, you discovered that parking costs you an additional $15. In this situation, the
additional $15 you pay for parking is an example of
A) an economic loss.
B) opportunity cost.
C) marginal cost.
D) an inefficient cost.
Answer: C
Diff: 2
Topic: Why Study Economics?
Status: 13e question
Learning Outcome: Micro-1
9) You have decided that you want to attend a costume party as Black Panther. You estimate that it will
cost $40 to assemble your costume. After spending $40 on the costume, you realize that the additional
pieces you need will cost you $25 more. The marginal cost of completing the costume is
A) $15.
B) $25.
C) $40.
D) $65.
Answer: B
Diff: 2
Topic: Why Study Economics?
Status: 13e question
Learning Outcome: Micro-1
10) The concept of opportunity cost
A) is relevant only to economics.
B) can be applied to the analysis of any decision-making process.
C) applies to consumers but not to firms.
D) refers only to actual payments and incomes.
Answer: B
Diff: 1
Topic: Why Study Economics?
Status: 13e question
Learning Outcome: Micro-1
11) Opportunity cost is
A) that which we forgo, or give up, when we make a choice or a decision.
B) a cost that cannot be avoided, regardless of what is done in the future.
C) the additional cost of producing an additional unit of output.
D) the additional cost of buying an additional unit of a product.
Answer: A
Diff: 1
Topic: Why Study Economics?
Status: 13e question
Learning Outcome: Micro-1
3
Copyright © 2026 Pearson Education, Inc.
,12) The reason that opportunity costs arise is that
A) an economy relies on money to facilitate exchange of goods and services.
B) resources are scarce.
C) there are no alternative decisions that could be made.
D) people have limited wants.
Answer: B
Diff: 1
Topic: Why Study Economics?
Status: 13e question
Learning Outcome: Micro-1
13) Which of the following is not an opportunity cost of attending college?
A) the tuition you pay
B) the income you could have earned if you didn't attend college
C) the alternative uses of the time you spend studying
D) the cost of the food that you consume while you are attending college
Answer: D
Diff: 2
Topic: Why Study Economics?
Status: 13e modified
Learning Outcome: Micro-1
14) If your tuition is $5,000 this semester, your books cost $600, you can only work 20 rather than 40 hours
per week during the 15 weeks you are taking classes and you make $15 per hour, and your room and
board is $3,000 this semester (same as if not attending college), then your opportunity cost of attending
college this semester is
A) $5,600.
B) $5,900.
C) $10,100.
D) $11,600.
Answer: C
Diff: 3
Topic: Why Study Economics?
Status: 13e question
Learning Outcome: Micro-1
4
Copyright © 2026 Pearson Education, Inc.
,15) If your tuition is $25,000 this semester, your books cost $1,500, you can only work 20 rather than 40
hours per week during the 15 weeks you are taking classes and you make $15 per hour, and your room
and board is $7,500 this semester (same as if not attending college), then your opportunity cost of
attending college this semester is
A) $26,500.
B) $26,800.
C) $31,000.
D) $38,500.
Answer: C
Diff: 3
Topic: Why Study Economics?
Status: 13e question
Learning Outcome: Micro-1
16) If you own a building and you decide to use that building to open a book store,
A) there is no opportunity cost of using this building for a book store because you own it.
B) there is an opportunity cost of using this building for a book store because it could have been used in
other ways.
C) the opportunity costs equal the cost of inventory.
D) the only cost relevant to this decision is the price you paid for the building.
Answer: B
Diff: 2
Topic: Why Study Economics?
Status: 13e question
Learning Outcome: Micro-1
17) You own the video game Grand Theft Auto: VI. The opportunity cost of playing this game for the
second time
A) is zero.
B) is one-half the cost of the game, as this is the second time you have played it.
C) is the value of the alternative use of the time you spend playing the game.
D) cannot be calculated.
Answer: C
Diff: 2
Topic: Why Study Economics?
Status: 13e modified
Learning Outcome: Micro-1
18) That which we forgo, or give up, when we make a choice or decision is called
A) out-of-pocket cost.
B) marginal cost.
C) real cost.
D) opportunity cost.
Answer: D
Diff: 1
Topic: Why Study Economics?
Status: 13e question
Learning Outcome: Micro-1
5
Copyright © 2026 Pearson Education, Inc.
,19) Economists often refer to risk-free ventures as
A) efficient market outcomes.
B) profit opportunities.
C) those with no opportunity costs.
D) break-even propositions.
Answer: B
Diff: 1
Topic: Why Study Economics?
Status: 13e question
Learning Outcome: Micro-1
20) You are having a party tonight and need to order some pizzas. If you can buy 9 pizzas for $126 or you
could buy 10 pizzas for $130 with the promotion currently going on, then the marginal cost of the tenth
pizza is
A) $4.
B) $13.
C) $14.
D) $130.
Answer: A
Diff: 2
Topic: Why Study Economics?
Status: 13e modified
Learning Outcome: Micro-1
21) If you eat at a sushi restaurant that charges $20 for its all-you-can-eat sushi special, then the marginal
cost of your 10th piece of sushi is
A) zero.
B) $2.
C) $200.
D) $2,000.
Answer: A
Diff: 2
Topic: Why Study Economics?
Status: 13e question
Learning Outcome: Micro-1
22) A market in which profit opportunities are eliminated almost instantaneously is
A) a laissez-faire market.
B) a capitalist market.
C) a socialist market.
D) an efficient market.
Answer: D
Diff: 1
Topic: Why Study Economics?
Status: 13e question
Learning Outcome: Micro-1
6
Copyright © 2026 Pearson Education, Inc.
,23) If information is less costly and more easily available, then usually this
A) makes markets more efficient.
B) makes markets less efficient.
C) increases profit opportunities.
D) increases the opportunity cost of acquiring more information.
Answer: A
Diff: 2
Topic: Why Study Economics?
Status: 13e question
Learning Outcome: Micro-1
24) An efficient market is a market in which
A) everyone always gets what they want.
B) profit opportunities are eliminated almost instantaneously.
C) profits are always very high and persistent.
D) opportunity costs are zero.
Answer: B
Diff: 2
Topic: Why Study Economics?
Status: 13e question
Learning Outcome: Micro-1
25) According to the Economics in Practice, when rains in rural India are plentiful, the opportunity cost of
having someone out of the labor force, and therefore unable to work in agricultural production,
A) increases.
B) decreases.
C) remains unchanged.
D) is zero, because the person is out of the labor force.
Answer: A
Diff: 2
Topic: Why Study Economics?: Economics in Practice
Status: 13e modified
Learning Outcome: Micro-1
26) According to the Economics in Practice, when rural India is suffering from a drought where
agricultural output is low, the opportunity cost of having someone out of the labor force, and therefore
unable to work in agricultural production, is
A) high
B) low.
C) infinite.
D) zero, because the person is out of the labor force.
Answer: B
Diff: 2
Topic: Why Study Economics?: Economics in Practice
Status: 13e modified
Learning Outcome: Micro-1
7
Copyright © 2026 Pearson Education, Inc.
, 27) According to the Economics in Practice, in terms of wages and job availability, those students
graduating during a recession with a degree in economics are ________ those graduating with a degree in
sociology.
A) better off than
B) worse off than
C) affected equally to
D) There seems to be no correlation between a student's major and wages or employment during a
recession.
Answer: A
Diff: 1
Topic: Why Study Economics?: Economics in Practice
Status: 13e modified
Learning Outcome: Micro-1
28) According to the Economics in Practice, a majority of the $10 retail value of the Barbie doll
A) is needed to pay for the cost of the Taiwanese plastic used to make the dolls.
B) pays for the Chinese labor used to assemble the doll.
C) is captured in the United States.
D) goes to the Japanese manufacturer of the hair which is used for the dolls.
Answer: C
Diff: 2
Topic: Why Study Economics?: Economics in Practice
Status: 13e modified
Learning Outcome: Micro-1
29) The opportunity cost to Mattel of having its Barbie doll assembled in China is
A) the low wages paid to Chinese workers.
B) the $2 export value the doll carries when it leaves Hong Kong.
C) the $8 of its $10 retail value which is captured in the United States.
D) having the Barbie doll assembled in the next best available location.
Answer: D
Diff: 2
Topic: Why Study Economics?: Economics in Practice
Status: 13e modified
Learning Outcome: Micro-1
30) The reasons to study economics include which of the following?
A) to be an informed citizen
B) to understand society
C) to learn a way of thinking
D) all of the above
Answer: D
Diff: 1
Topic: Why Study Economics?
Status: 13e question
Learning Outcome: Micro-1
8
Copyright © 2026 Pearson Education, Inc.
