Test Bank, Macroeconomics: Private and Public Choice
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1 Test Bank Test Bank, Macroeconomics: Private and Public Choice 13th Edition James Gwartney Florida State University Richard Stroup Montana State University Russell Sobel West Virginia University David Macpherson Trinity University San Antionio,TX Prepared by Joseph P. Calhoun Florida State University Australia Brazil Japan Korea Mexico Singapore Spain United Kingdom United States
2 2011, 2009 South-Western, Cengage Learning ALL RIGHTS RESERVED. No part of this work covered by the copyright herein may be reproduced, transmitted, stored, or used in any form or by any means graphic, electronic, or mechanical, including but not limited to photocopying, recording, scanning, digitizing, taping, Web distribution, information networks, or information storage and retrieval systems, except as permitted under Section 107 or 108 of the 1976 United States Copyright Act, without the prior written permission of the publisher except as may be permitted by the license terms below. For product information and technology assistance, contact us at Cengage Learning Academic Resource Center, For permission to use material from this text or product, submit all requests online at Further permissions questions can be ed to ISBN-13: ISBN-10: South-Western Cengage Learning 5191 Natorp Boulevard Mason, OH USA Cengage Learning is a leading provider of customized learning solutions with office locations around the globe, including Singapore, the United Kingdom, Australia, Mexico, Brazil, and Japan. Locate your local office at: international.cengage.com/region. Cengage Learning products are represented in Canada by Nelson Education, Ltd. For your course and learning solutions, visit Purchase any of our products at your local college store or at our preferred online store NOTE: UNDER NO CIRCUMSTANCES MAY THIS MATERIAL OR ANY PORTION THEREOF BE SOLD, LICENSED, AUCTIONED, OR OTHERWISE REDISTRIBUTED EXCEPT AS MAY BE PERMITTED BY THE LICENSE TERMS HEREIN. READ IMPORTANT LICENSE INFORMATION Dear Professor or Other Supplement Recipient: Cengage Learning has provided you with this product (the Supplement ) for your review and, to the extent that you adopt the associated textbook for use in connection with your course (the Course ), you and your students who purchase the textbook may use the Supplement as described below. Cengage Learning has established these use limitations in response to concerns raised by authors, professors, and other users regarding the pedagogical problems stemming from unlimited distribution of Supplements. Cengage Learning hereby grants you a nontransferable license to use the Supplement in connection with the Course, subject to the following conditions. The Supplement is for your personal, noncommercial use only and may not be reproduced, posted electronically or distributed, except that portions of the Supplement may be provided to your students IN PRINT FORM ONLY in connection with your instruction of the Course, so long as such students are advised that they may not copy or distribute any portion of the Supplement to any third party. Test banks and other testing materials may be made available in the classroom and collected at the end of each class session, or posted electronically as described herein. Any material posted electronically must be through a password-protected site, with all copy and download functionality disabled, and accessible solely by your students who have purchased the associated textbook for the Course. You may not sell, license, auction, or otherwise redistribute the Supplement in any form. We ask that you take reasonable steps to protect the Supplement from unauthorized use, reproduction, or distribution. Your use of the Supplement indicates your acceptance of the conditions set forth in this Agreement. If you do not accept these conditions, you must return the Supplement unused within 30 days of receipt. All rights (including without limitation, copyrights, patents, and trade secrets) in the Supplement are and will remain the sole and exclusive property of Cengage Learning and/or its licensors. The Supplement is furnished by Cengage Learning on an as is basis without any warranties, express or implied. This Agreement will be governed by and construed pursuant to the laws of the State of New York, without regard to such State s conflict of law rules. Thank you for your assistance in helping to safeguard the integrity of the content contained in this Supplement. We trust you find the Supplement a useful teaching tool. Printed in the United States of America
3 Table of Contents Chapter 1 The Economic Approach... 1 Chapter 2 Some Tools of the Economist Chapter 3 Supply, Demand, and the Market Process Chapter 4 Supply and Demand: Applications and Extensions Chapter 5 Difficult Cases for the Market and the Role of Government Chapter 6 The Economics of Collective Decision Making Chapter 7 Taking the Nation s Economic Pulse Chapter 8 Economic Fluctuations, Unemployment, and Inflation Chapter 9 An Introduction to Basic Macroeconomic Markets Chapter 10 Chapter 11 Chapter 12 Dynamic Change, Economic Fluctuations, and the AD-AS Model Fiscal Policy: The Keynesian View and Historical Perspective Fiscal Policy, Incentives, and Secondary Effects Chapter 13 Money and the Banking System Chapter 14 Modern Macroeconomics and Monetary Policy Chapter 15 Chapter 16 Chapter 17 Stabilization Policy, Output, and Employment Creating an Environment for Growth and Prosperity Institutions, Policies, and Cross-Country Differences in Income and Growth Chapter 18 Gaining From International Trade Chapter 19 International Finance and the Foreign Exchange Market iii
4 Special Topic 1 Government Spending and Taxation Special Topic 2 The Internet: How Is It Changing the Economy? Special Topic 3 The Economics of Social Security Special Topic 4 The Stock Market: Its Function, Performance, and Potential as an Investment Opportunity Special Topic 5 The Crisis of 2008: Causes and Lessons for the Future Special Topic 6 Lessons from the Great Depression Special Topic 7 Lessons from the Japanese Experience Special Topic 8 The Federal Budget and National Debt iv
5 Preface This test bank contains over 4,000 questions. The questions are organized by the major headings within each chapter (or special topic) of Macroeconomics: Private and Public Choice. Similar questions under each major heading are also grouped together. This makes it easy for instructors to assemble balanced quizzes and examinations that reflect their preferences. The first ten questions of each chapter (and the first five questions of each special topic) are designed for use as a quiz. The Coursebook and online practice questions, which can be found on the textbook s Web site at provide students with approximately 15 study questions for each chapter and 10 for each special topic. The multiple-choice questions from those sources are also contained in the test bank and designated as such. Many instructors will want to integrate the questions from these sources into their quizzes and exams in order to provide their students with a strong incentive to work through these questions. Although the Coursebook and online questions are different than those in the test bank, they focus on the same concepts. Clearly, studying the Coursebook and online questions will help prepare students for their exams. Examview, the computerized testing software that accompanies Macroeconomics: Private and Public Choice contains all the questions in the printed test bank. Using ExamView, instructors can add or edit questions, instructions, and answers, and select questions by previewing them on screen, selecting them randomly, or selecting them by criteria. ExamView can automatically scramble questions, multiple-choice options, and questions sections, if instructors choose to do so to create different test versions. Instructors can also create and administer quizzes online via the Internet, a local-area network (LAN), or a widearea network (WAN) using ExamView. Joe Calhoun of Florida State University played a leading role in the revision of this test bank. We know how important it is for you to have a quality test bank. We believe this supplement will provide you with an integrated package of quality questions a powerful tool with which to motivate your students to perform at a higher level. If you have comments or suggestions for its improvement, we would be delighted to hear from you. Joseph Calhoun James Gwartney David Macpherson Russell Sobel Richard Stroup v
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