TEST BANK
Macroeconomics for Life, Smart
Choices for You, 3rd Canadian
Edition by Avi J. Cohen
Complete Chapter Test Bank
are included (Ch 1 to 15)
** Immediate Download
** Swift Response
** All Chapters included
,Table of Contents are given below
1.What's in Economics for You? Scarcity, Opportunity Cost, Trade, and Models
2.Making Smart Choices: The Law of Demand
3.Show Me the Money: The Law of Supply
4.Coordinating Smart Choices: Demand and Supply
5.Are Your Smart Choices Smart For All? Macroeconomics and Microeconomics
6.Up Around the Circular Flow: Measuring GDP and Living Standards
7.Do Macroeconomics Dreams Come True? Potential GDP, Economic Growth, and Business
Cycles
8.Cost of (Not) Working and Living: Unemployment and Inflation
9.Skating to Where the Puck Is Going: Aggregate Supply and Aggregate Demand
10.What's Behind Aggregate Demand? The Aggregate Expenditure Model and Multipliers
11.Trading Dollars for Dollars? Exchange Rates and Payments with the Rest of the World
12.Steering Blindly? Money, Monetary Policy, and the Bank of Canada
13.Spending Others' Money: Fiscal Policy, Deficits, and National Debt
14.Are Sweatshops All Bad? Globalization and Trade Policy
15.Hands-Off and/or Hands-On? Controversies in Macroeconomics
,The test bank is organized in reverse order, with the last chapter displayed first, to ensure that all
chapters are included in this document. (Complete Chapters included Ch15-1)
Macroeconomics for Life: Smart Choices for All?, 3Ce (Cohen)
Chapter 15 Hands-Off and/or Hands-On?
15.1 Will the Circle Be Unbroken? Say's Law and the Fundamental Macroeconomic Question
1) Say's Law states that
A) demand creates its own supply.
B) demand exceeds supply.
C) supply exceeds demand.
D) prices are determined by producers.
E) supply creates its own demand.
Answer: E
Diff: 1 Type: MC
Skill: Recall
Objective: 15.1 Describe the fundamental macroeconomic question and the Hands-Off and
Hands-On positions on government policy.
2) Households spend the money earned
A) in output markets to supply products and services in input markets.
B) in input markets to buy products and services in output markets.
C) in input markets to supply products and services in input markets.
D) to pay for products and services after negotiating their prices in markets.
E) in output markets to buy products and services in input markets.
Answer: B
Diff: 2 Type: MC
Skill: Recall
Objective: 15.1 Describe the fundamental macroeconomic question and the Hands-Off and
Hands-On positions on government policy.
3) According to Keynes,
A) Say's Law is a "special theory."
B) macroeconomic theory is about the short run.
C) macroeconomic theory is about the long run.
D) Say's Law is not a "general theory."
E) all of these choices are correct.
Answer: E
Diff: 2 Type: MC
Skill: Recall
Objective: 15.1 Describe the fundamental macroeconomic question and the Hands-Off and
Hands-On positions on government policy.
1
, 4) J. B. Say's focus on the
A) short run is consistent with the view that markets self-adjust.
B) short run is consistent with the view that markets fail often.
C) long run is consistent with the view that markets self-adjust.
D) long run is consistent with the view that markets fail often.
E) short run is consistent with Adam Smith's invisible hand.
Answer: C
Diff: 1 Type: MC
Skill: Recall
Objective: 15.1 Describe the fundamental macroeconomic question and the Hands-Off and
Hands-On positions on government policy.
5) Keynes's focus is on the
A) short run and is consistent with the view that markets self-adjust.
B) short run and is consistent with the view that markets fail often.
C) long run and is consistent with the view that markets self-adjust.
D) long run and is consistent with the view that markets fail often.
E) short run and is consistent with Adam Smith's invisible hand.
Answer: B
Diff: 1 Type: MC
Skill: Recall
Objective: 15.1 Describe the fundamental macroeconomic question and the Hands-Off and
Hands-On positions on government policy.
6) In microeconomics, markets fail due to
A) negative externalities.
B) positive externalities.
C) inequality.
D) economies of scale.
E) all of these choices are correct.
Answer: E
Diff: 1 Type: MC
Skill: Recall
Objective: 15.1 Describe the fundamental macroeconomic question and the Hands-Off and
Hands-On positions on government policy.
7) In macroeconomics, signs of market failure include
A) unemployment.
B) slow growth.
C) inflation.
D) constant living standards.
E) all of these choices are correct.
Answer: E
Diff: 1 Type: MC
Skill: Recall
Objective: 15.1 Describe the fundamental macroeconomic question and the Hands-Off and
Hands-On positions on government policy.
2
Macroeconomics for Life, Smart
Choices for You, 3rd Canadian
Edition by Avi J. Cohen
Complete Chapter Test Bank
are included (Ch 1 to 15)
** Immediate Download
** Swift Response
** All Chapters included
,Table of Contents are given below
1.What's in Economics for You? Scarcity, Opportunity Cost, Trade, and Models
2.Making Smart Choices: The Law of Demand
3.Show Me the Money: The Law of Supply
4.Coordinating Smart Choices: Demand and Supply
5.Are Your Smart Choices Smart For All? Macroeconomics and Microeconomics
6.Up Around the Circular Flow: Measuring GDP and Living Standards
7.Do Macroeconomics Dreams Come True? Potential GDP, Economic Growth, and Business
Cycles
8.Cost of (Not) Working and Living: Unemployment and Inflation
9.Skating to Where the Puck Is Going: Aggregate Supply and Aggregate Demand
10.What's Behind Aggregate Demand? The Aggregate Expenditure Model and Multipliers
11.Trading Dollars for Dollars? Exchange Rates and Payments with the Rest of the World
12.Steering Blindly? Money, Monetary Policy, and the Bank of Canada
13.Spending Others' Money: Fiscal Policy, Deficits, and National Debt
14.Are Sweatshops All Bad? Globalization and Trade Policy
15.Hands-Off and/or Hands-On? Controversies in Macroeconomics
,The test bank is organized in reverse order, with the last chapter displayed first, to ensure that all
chapters are included in this document. (Complete Chapters included Ch15-1)
Macroeconomics for Life: Smart Choices for All?, 3Ce (Cohen)
Chapter 15 Hands-Off and/or Hands-On?
15.1 Will the Circle Be Unbroken? Say's Law and the Fundamental Macroeconomic Question
1) Say's Law states that
A) demand creates its own supply.
B) demand exceeds supply.
C) supply exceeds demand.
D) prices are determined by producers.
E) supply creates its own demand.
Answer: E
Diff: 1 Type: MC
Skill: Recall
Objective: 15.1 Describe the fundamental macroeconomic question and the Hands-Off and
Hands-On positions on government policy.
2) Households spend the money earned
A) in output markets to supply products and services in input markets.
B) in input markets to buy products and services in output markets.
C) in input markets to supply products and services in input markets.
D) to pay for products and services after negotiating their prices in markets.
E) in output markets to buy products and services in input markets.
Answer: B
Diff: 2 Type: MC
Skill: Recall
Objective: 15.1 Describe the fundamental macroeconomic question and the Hands-Off and
Hands-On positions on government policy.
3) According to Keynes,
A) Say's Law is a "special theory."
B) macroeconomic theory is about the short run.
C) macroeconomic theory is about the long run.
D) Say's Law is not a "general theory."
E) all of these choices are correct.
Answer: E
Diff: 2 Type: MC
Skill: Recall
Objective: 15.1 Describe the fundamental macroeconomic question and the Hands-Off and
Hands-On positions on government policy.
1
, 4) J. B. Say's focus on the
A) short run is consistent with the view that markets self-adjust.
B) short run is consistent with the view that markets fail often.
C) long run is consistent with the view that markets self-adjust.
D) long run is consistent with the view that markets fail often.
E) short run is consistent with Adam Smith's invisible hand.
Answer: C
Diff: 1 Type: MC
Skill: Recall
Objective: 15.1 Describe the fundamental macroeconomic question and the Hands-Off and
Hands-On positions on government policy.
5) Keynes's focus is on the
A) short run and is consistent with the view that markets self-adjust.
B) short run and is consistent with the view that markets fail often.
C) long run and is consistent with the view that markets self-adjust.
D) long run and is consistent with the view that markets fail often.
E) short run and is consistent with Adam Smith's invisible hand.
Answer: B
Diff: 1 Type: MC
Skill: Recall
Objective: 15.1 Describe the fundamental macroeconomic question and the Hands-Off and
Hands-On positions on government policy.
6) In microeconomics, markets fail due to
A) negative externalities.
B) positive externalities.
C) inequality.
D) economies of scale.
E) all of these choices are correct.
Answer: E
Diff: 1 Type: MC
Skill: Recall
Objective: 15.1 Describe the fundamental macroeconomic question and the Hands-Off and
Hands-On positions on government policy.
7) In macroeconomics, signs of market failure include
A) unemployment.
B) slow growth.
C) inflation.
D) constant living standards.
E) all of these choices are correct.
Answer: E
Diff: 1 Type: MC
Skill: Recall
Objective: 15.1 Describe the fundamental macroeconomic question and the Hands-Off and
Hands-On positions on government policy.
2
