NETA ASSESSMENT
Test Bank
to accompany
Test Bank prepared by
Constantin Colonescu
MacEwan University
PREFACE
,Chapter L1—Ten LPrinciples Lof LEconomics
MULTIPLE LCHOICE
1. Which Lword Lcomes Lfrom Lthe LGreek Lword Lfor L“one Lwho Lmanages La Lhousehold”?
a. market
b. consumer
c. producer
d. economy
ANS: L L D PTS: L L L 1 DIF: Easy REF: p. L3-4
BLM: L Remember NOT: L L Macro LTB_1-1
2. From Lwhich LGreek Lword(s) Lis Lthe Lword Leconomy Lderived?
a. environment
b. one Lwho Lmanages La Lhousehold
c. one Lwho Lparticipates Lin La Lmarket
d. conservation
ANS: L L B PTS: L L L 1 DIF: Easy REF: p. L3-4
BLM: L Remember NOT: L L Macro LTB_1-2
3. What Ldo Lhouseholds Land Leconomies Lhave Lin Lcommon?
a. They Lboth Lmust Lallocate Lscarce Lresources.
b. They Lboth Lface Lmany Ldecisions.
c. They Lboth Lmust Lallocate Lthe Lgoods Land Lservices Lthey Lproduce.
d. They Lboth Lmust Lhave La Lcentral Ldecision Lmaker.
ANS: L L D PTS: L L L 1 DIF: Average REF: p. L3-4
BLM: L Remember NOT: L L Macro LTB_1-3
4. What Lconcept Ldoes Leconomics Lprimarily Ldeal Lwith?
a. scarcity
b. poverty
c. change
d. power
ANS: L L A PTS: L L L 1 DIF: Easy REF: p. L4
BLM: L Remember NOT: L L Macro LTB_1-4
5. Which Lof Lthe Lfollowing Lis LNOT Lincluded Lin Lthe Ldecisions Lthat Levery Lsociety Lmust Lmake?
a. what Lgoods Lwill Lbe Lproduced
b. who Lwill Lproduce Lthe Lgoods
c. what Ldetermines Lconsumer Lpreferences
d. who Lwill Lconsume Lthe Lgoods
ANS: L L C PTS: L L L 1 DIF: Average REF: L L L p. L4
BLM: L Remember NOT: L L Macro LTB_1-5
6.Why Ldo Lboth Lhouseholds Land Lsocieties Lface Lmany Ldecisions?
a. because Lresources Lare Lscarce
b. because Lpopulations Lmay Lincrease Lor Ldecrease Lover Ltime
c. because Lwages Lfor Lhouseholds Land Ltherefore Lsociety Lfluctuate Lwith Lbusiness Lcycles
d. because Lpeople, Lby Lnature, Ltend Lto Ldisagree
Copyright © 2014 Nelson Education Limited. 1-2
,Test Bank Chapter 1 Macroeconomics Mankiw 6Ce
ANS: L L A PTS: L L L 1 DIF: Average REF: L L L p. L4
BLM: L Remember NOT: L L Macro LTB_1-6
7. When Lis La Lgood Lconsidered Lscarce Lin La Lsociety?
a. when Lmore Loutput Lof Lthe Lgood Lis Lpossible
b. when Leveryone Lin Lthat Lsociety Lcannot Lhave Lall Lthey Lwant Lof Lthe Lgood
c. when Lthe Lgovernment Lrestricts Lproduction Lof Lthe Lgood
d. when Lonly Lthe Lrichest Lpeople Lin Lthe Leconomy Lcan Lbuy Lall Lthey Lwant Lof Lthe Lgood
ANS: L L B PTS: L L L 1 DIF: Average REF: L L L p. L4
BLM: L Remember NOT: L L Macro LTB_1-7
8. When Ldoes Lscarcity Lexist?
a. when Lthere Lis Lless Lthan Lan Linfinite Lamount Lof La Lresource Lor Lgood
b. when Lsociety Lcan Lmeet Lthe Lwants Lof Levery Lindividual
c. when Lthere Lis Lless Lof La Lgood Lor Lresource Lavailable Lthan Lpeople Lwish Lto Lhave
d. when Lthe Lgovernment Lfails Lto Lproduce Lgoods
ANS: L L C PTS: L L L 1 DIF: Average REF: L L L p. L4
BLM: L Remember NOT: L L Macro LTB_1-8
9. How Lare Lgoods Land Lservices Lallocated Lin La Lmarket Leconomy?
a. by Lgovernment Ldecisions
b. by Lgiving Leach Lindividual Ljust Lenough Lfor La Ldecent Lstandard Lof Lliving
c. by Lthe Lactions Lof Lall Lfirms Land Lconsumers
d. by Linherited Lrights Land Lproperties
ANS: L L C PTS: L L L 1 DIF: Average REF: L L L p. L4
BLM: L Higher LOrder NOT: L L Macro LTB_1-9
10. Approximately Lwhat Lpercentage Lof Lthe Lworld’s Leconomies Lexperience Lscarcity?
a. 25%
b. 50%
c. 75%
d. 100%
ANS: L L D PTS: L L L 1 DIF: Easy REF: L L L p. L4
BLM: L Remember NOT: L L Macro LTB_1-10
11. What Lis Lthe Leconomy Lexperiencing Lwhen La Lsociety Lcannot Lproduce Lall Lthe Lgoods Land Lservices
Lpeople L wish Lto Lhave?
a. scarcity
b. communism
c. externalities
d. market Lfailure
ANS: L L A PTS: L L L 1 DIF: Easy REF: L L L p. L4
BLM: L Higher LOrder NOT: L L Macro LTB_1-11
12. For Lsociety, Lwhen Lis La Lgood LNOT Lscarce?
a. if Lat Lleast Lone Lindividual Lin Lsociety Lcan Lobtain Lall Lhe Lor Lshe Lwants Lof Lthe Lgood
b. if Lfirms Lare Lproducing Lat Lfull Lcapacity
c. if Lall Lmembers Lof Lsociety Lcan Lhave Lall Lthey Lwant Lof Lthe Lgood
d. if Lthose Lwho Lhave Lenough Lincome Lcan Lbuy Lall Lthey Lwant Lof Lthe Lgood
Copyright © 2014 Nelson Education Limited. 1-3
, Test Bank Chapter 1 Macroeconomics Mankiw 6Ce
ANS: L L C PTS: L L L 1 DIF: Average REF: L L L p. L4
BLM: L Higher LOrder NOT: L L Macro LTB_1-12
13. Which Lof Lthe Lfollowing Lgoods Lbest Lmeets Lthe Ldefinition Lof Lscarcity?
a. air
b. water Lin Lthe Locean
c. water Lin La Lcity
d. wood Lin La Lforest
ANS: L L C PTS: L L L 1 DIF: Average REF: p. L4
BLM: L Remember NOT: L L Macro LTB_1-13
14. What Ldoes Leconomics Lstudy?
a. business
b. how Lsociety Lmanages Lits Lscarce Lresources
c. central Lplanning
d. government Lregulation
ANS: L L B PTS: L L L 1 DIF: Easy REF: p. L4
BLM: L Remember NOT: L L Macro LTB_1-14
15. What Ldoes Leconomics Lstudy?
a. how Lsociety Lmanages Lits Lscarce Lresources
b. the Lgovernment’s Lrole Lin Lsociety
c. how Lto Lincrease Lproduction
d. how Lfirms Lmake Lprofits
ANS: L L A PTS: L L L 1 DIF: Easy REF: p. L4
BLM: L Remember NOT: L L Macro LTB_1-15
16. In Lmost Lsocieties, Lwho Lallocates Lresources?
a. a Lsingle Lcentral Lplanner
b. those Lwho Lown Lthe Lresources
c. those Lfirms Lthat Luse Lresources Lto Lprovide Lgoods Land Lservices
d. the Lcombined Lactions Lof Lmillions Lof Lhouseholds Land Lfirms
ANS: L L D PTS: L L L 1 DIF: Average REF: p. L4
BLM: L Remember NOT: L L Macro LTB_1-16
17. What Ldo Leconomists Lstudy?
a. how Lpeople Lmake Ldecisions
b. how Lgovernments Linteract Lwith Lone Lanother
c. the Lforces Land Ltrends Lthat Laffect Lonly Lthe Leconomy Las La Lwhole
d. how Lsocieties Lchange Lover Ltime
ANS: L L D PTS: L L L 1 DIF: Average REF: p. L4
BLM: L Remember NOT: L L Macro LTB_1-17
18. Which Lof Lthe Lfollowing Lis LNOT La Lmajor Larea Lof Lstudy Lfor Leconomists?
a. how Lpeople Lmake Ldecisions
b. how Lcountries Lchoose Lnational Lleaders
c. how Lpeople Linteract Lwith Leach Lother
d. how Lforces Land Ltrends Laffect Lthe Loverall Leconomy
Copyright © 2014 Nelson Education Limited. 1-4
Test Bank
to accompany
Test Bank prepared by
Constantin Colonescu
MacEwan University
PREFACE
,Chapter L1—Ten LPrinciples Lof LEconomics
MULTIPLE LCHOICE
1. Which Lword Lcomes Lfrom Lthe LGreek Lword Lfor L“one Lwho Lmanages La Lhousehold”?
a. market
b. consumer
c. producer
d. economy
ANS: L L D PTS: L L L 1 DIF: Easy REF: p. L3-4
BLM: L Remember NOT: L L Macro LTB_1-1
2. From Lwhich LGreek Lword(s) Lis Lthe Lword Leconomy Lderived?
a. environment
b. one Lwho Lmanages La Lhousehold
c. one Lwho Lparticipates Lin La Lmarket
d. conservation
ANS: L L B PTS: L L L 1 DIF: Easy REF: p. L3-4
BLM: L Remember NOT: L L Macro LTB_1-2
3. What Ldo Lhouseholds Land Leconomies Lhave Lin Lcommon?
a. They Lboth Lmust Lallocate Lscarce Lresources.
b. They Lboth Lface Lmany Ldecisions.
c. They Lboth Lmust Lallocate Lthe Lgoods Land Lservices Lthey Lproduce.
d. They Lboth Lmust Lhave La Lcentral Ldecision Lmaker.
ANS: L L D PTS: L L L 1 DIF: Average REF: p. L3-4
BLM: L Remember NOT: L L Macro LTB_1-3
4. What Lconcept Ldoes Leconomics Lprimarily Ldeal Lwith?
a. scarcity
b. poverty
c. change
d. power
ANS: L L A PTS: L L L 1 DIF: Easy REF: p. L4
BLM: L Remember NOT: L L Macro LTB_1-4
5. Which Lof Lthe Lfollowing Lis LNOT Lincluded Lin Lthe Ldecisions Lthat Levery Lsociety Lmust Lmake?
a. what Lgoods Lwill Lbe Lproduced
b. who Lwill Lproduce Lthe Lgoods
c. what Ldetermines Lconsumer Lpreferences
d. who Lwill Lconsume Lthe Lgoods
ANS: L L C PTS: L L L 1 DIF: Average REF: L L L p. L4
BLM: L Remember NOT: L L Macro LTB_1-5
6.Why Ldo Lboth Lhouseholds Land Lsocieties Lface Lmany Ldecisions?
a. because Lresources Lare Lscarce
b. because Lpopulations Lmay Lincrease Lor Ldecrease Lover Ltime
c. because Lwages Lfor Lhouseholds Land Ltherefore Lsociety Lfluctuate Lwith Lbusiness Lcycles
d. because Lpeople, Lby Lnature, Ltend Lto Ldisagree
Copyright © 2014 Nelson Education Limited. 1-2
,Test Bank Chapter 1 Macroeconomics Mankiw 6Ce
ANS: L L A PTS: L L L 1 DIF: Average REF: L L L p. L4
BLM: L Remember NOT: L L Macro LTB_1-6
7. When Lis La Lgood Lconsidered Lscarce Lin La Lsociety?
a. when Lmore Loutput Lof Lthe Lgood Lis Lpossible
b. when Leveryone Lin Lthat Lsociety Lcannot Lhave Lall Lthey Lwant Lof Lthe Lgood
c. when Lthe Lgovernment Lrestricts Lproduction Lof Lthe Lgood
d. when Lonly Lthe Lrichest Lpeople Lin Lthe Leconomy Lcan Lbuy Lall Lthey Lwant Lof Lthe Lgood
ANS: L L B PTS: L L L 1 DIF: Average REF: L L L p. L4
BLM: L Remember NOT: L L Macro LTB_1-7
8. When Ldoes Lscarcity Lexist?
a. when Lthere Lis Lless Lthan Lan Linfinite Lamount Lof La Lresource Lor Lgood
b. when Lsociety Lcan Lmeet Lthe Lwants Lof Levery Lindividual
c. when Lthere Lis Lless Lof La Lgood Lor Lresource Lavailable Lthan Lpeople Lwish Lto Lhave
d. when Lthe Lgovernment Lfails Lto Lproduce Lgoods
ANS: L L C PTS: L L L 1 DIF: Average REF: L L L p. L4
BLM: L Remember NOT: L L Macro LTB_1-8
9. How Lare Lgoods Land Lservices Lallocated Lin La Lmarket Leconomy?
a. by Lgovernment Ldecisions
b. by Lgiving Leach Lindividual Ljust Lenough Lfor La Ldecent Lstandard Lof Lliving
c. by Lthe Lactions Lof Lall Lfirms Land Lconsumers
d. by Linherited Lrights Land Lproperties
ANS: L L C PTS: L L L 1 DIF: Average REF: L L L p. L4
BLM: L Higher LOrder NOT: L L Macro LTB_1-9
10. Approximately Lwhat Lpercentage Lof Lthe Lworld’s Leconomies Lexperience Lscarcity?
a. 25%
b. 50%
c. 75%
d. 100%
ANS: L L D PTS: L L L 1 DIF: Easy REF: L L L p. L4
BLM: L Remember NOT: L L Macro LTB_1-10
11. What Lis Lthe Leconomy Lexperiencing Lwhen La Lsociety Lcannot Lproduce Lall Lthe Lgoods Land Lservices
Lpeople L wish Lto Lhave?
a. scarcity
b. communism
c. externalities
d. market Lfailure
ANS: L L A PTS: L L L 1 DIF: Easy REF: L L L p. L4
BLM: L Higher LOrder NOT: L L Macro LTB_1-11
12. For Lsociety, Lwhen Lis La Lgood LNOT Lscarce?
a. if Lat Lleast Lone Lindividual Lin Lsociety Lcan Lobtain Lall Lhe Lor Lshe Lwants Lof Lthe Lgood
b. if Lfirms Lare Lproducing Lat Lfull Lcapacity
c. if Lall Lmembers Lof Lsociety Lcan Lhave Lall Lthey Lwant Lof Lthe Lgood
d. if Lthose Lwho Lhave Lenough Lincome Lcan Lbuy Lall Lthey Lwant Lof Lthe Lgood
Copyright © 2014 Nelson Education Limited. 1-3
, Test Bank Chapter 1 Macroeconomics Mankiw 6Ce
ANS: L L C PTS: L L L 1 DIF: Average REF: L L L p. L4
BLM: L Higher LOrder NOT: L L Macro LTB_1-12
13. Which Lof Lthe Lfollowing Lgoods Lbest Lmeets Lthe Ldefinition Lof Lscarcity?
a. air
b. water Lin Lthe Locean
c. water Lin La Lcity
d. wood Lin La Lforest
ANS: L L C PTS: L L L 1 DIF: Average REF: p. L4
BLM: L Remember NOT: L L Macro LTB_1-13
14. What Ldoes Leconomics Lstudy?
a. business
b. how Lsociety Lmanages Lits Lscarce Lresources
c. central Lplanning
d. government Lregulation
ANS: L L B PTS: L L L 1 DIF: Easy REF: p. L4
BLM: L Remember NOT: L L Macro LTB_1-14
15. What Ldoes Leconomics Lstudy?
a. how Lsociety Lmanages Lits Lscarce Lresources
b. the Lgovernment’s Lrole Lin Lsociety
c. how Lto Lincrease Lproduction
d. how Lfirms Lmake Lprofits
ANS: L L A PTS: L L L 1 DIF: Easy REF: p. L4
BLM: L Remember NOT: L L Macro LTB_1-15
16. In Lmost Lsocieties, Lwho Lallocates Lresources?
a. a Lsingle Lcentral Lplanner
b. those Lwho Lown Lthe Lresources
c. those Lfirms Lthat Luse Lresources Lto Lprovide Lgoods Land Lservices
d. the Lcombined Lactions Lof Lmillions Lof Lhouseholds Land Lfirms
ANS: L L D PTS: L L L 1 DIF: Average REF: p. L4
BLM: L Remember NOT: L L Macro LTB_1-16
17. What Ldo Leconomists Lstudy?
a. how Lpeople Lmake Ldecisions
b. how Lgovernments Linteract Lwith Lone Lanother
c. the Lforces Land Ltrends Lthat Laffect Lonly Lthe Leconomy Las La Lwhole
d. how Lsocieties Lchange Lover Ltime
ANS: L L D PTS: L L L 1 DIF: Average REF: p. L4
BLM: L Remember NOT: L L Macro LTB_1-17
18. Which Lof Lthe Lfollowing Lis LNOT La Lmajor Larea Lof Lstudy Lfor Leconomists?
a. how Lpeople Lmake Ldecisions
b. how Lcountries Lchoose Lnational Lleaders
c. how Lpeople Linteract Lwith Leach Lother
d. how Lforces Land Ltrends Laffect Lthe Loverall Leconomy
Copyright © 2014 Nelson Education Limited. 1-4
