Test Bank For The Macro Economy Today Bradley Schiller 15 Edition

Test Bank For The Macro Economy Today Bradley Schiller 15 Edition

The Macro Economy Today, 15e (Schiller)

Chapter 1   Economics: The Core Issues 

1) Which of the following is not one of the three core economic issues that must be resolved?

A) How to produce the goods and services we select.

B) What to produce with unlimited resources.

C) Who should get the goods and services we produce.

D) What to produce with limited resources. 

2) The fundamental problem of economics is

A) The law of increasing opportunity costs.

B) The scarcity of resources relative to human wants.

C) How to get government to operate efficiently.

D) How to create employment for everyone. 

3) In economics, scarcity means that

A) A shortage of a particular good will cause the price to fall.

B) A production possibilities curve cannot accurately represent the trade-off between two goods.

C) Society’s desires exceed resources available.

D) The market mechanism has failed. 

4) Given that resources are scarce,

A) A “free lunch” is possible, but only for a limited number of people.

B) Opportunity costs are experienced whenever choices are made.

C) Poor countries must make choices, but rich countries with abundant resources do not have to make choices.

D) Some choices involve opportunity costs while other choices do not. 

5) A consequence of the economic problem of scarcity is that

A) Choices have to be made about how resources are used.

B) There is never too much of any good or service produced.

C) The production of goods and services must be controlled by the government.

D) The production possibilities curve is bowed outward. 

6) The basic factors of production include

A) Land, labor, money, and capital.

B) Land, labor, money, and inputs.

C) Labor and money.

D) Land, labor, capital, and entrepreneurship. 

7) Factors of production are

A) Scarce in every society.

B) Scarce only in advanced countries.

C) Scarce only in the poorest countries of the world.

D) Unlimited in quantity. 

8) Which of the following is not a factor of production?

A) A psychiatrist.

B) $100,000 cash.

C) A bulldozer.

D) Six thousand acres of farmland. 

9) With respect to factors of production, which of the following statements is not true?

A) Factors of production are also known as resources.

B) In order to produce any good or service, it is necessary to have factors of production.

C) Factors of production include land, labor, capital, and entrepreneurship.

D) Only those resources that are privately owned are counted as factors of production. 

10) Which of the following is the best example of land?

A) The ethanol refined from corn.

B) A factory that produces new goods and services.

C) The water used to make a soft drink.

D) A barber’s chair. 

11) Capital, as economists use the term, refers to

A) The cash needed to start a new business.

B) The costs of operating a business.

C) Shares of stock issued by businesses.

D) Final goods that are used to produce other goods and services. 

12) Which economist argued that free markets unleashed the “animal spirits” of entrepreneurs, propelling innovation, technology, and growth?

A) Lord Kelvin.

B) Kenneth Olsen.

C) Irving Fisher.

D) John Maynard Keynes. 

13) The role of the entrepreneur in an economy is to

A) Bring the factors of production together and assume the risk of production.

B) Work with government planners to determine what goods are produced.

C) Arrange bank financing for the owners of new businesses.

D) Ensure full employment of labor. 

14) Economics can be defined as the study of

A) For whom resources are allocated to increase efficiency.

B) How society spends the income of individuals.

C) How scarce resources are allocated.

D) None of the choices are correct. 

15) Opportunity cost is

A) Measured only in dollars and cents.

B) The total dollar cost to society of producing the goods.

C) The difficulty associated with using one good in place of another.

D) What is given up in order to get something else. 

Test Bank for “The Macro Economy Today,” 15th Edition by Bradley Schiller

Overview:

• Title: The Macro Economy Today
• Edition: 15th
• Author: Bradley Schiller
• Focus: This textbook offers a comprehensive introduction to macroeconomic principles, emphasizing real-world applications and current economic issues. It is designed to make complex macroeconomic concepts accessible to students through clear explanations, examples, and practical insights.

Content Details:

1. Introduction to Macroeconomics:
   • Explanation of fundamental macroeconomic concepts such as GDP, inflation, and unemployment.
   • Overview of the different economic systems and the role of government in the economy.
   • Discussion on the importance of macroeconomic indicators in assessing the health of an economy.
2. Measuring Economic Performance:
   • Detailed exploration of how Gross Domestic Product (GDP) is calculated and what it represents.
   • Analysis of the components of GDP, including consumption, investment, government spending, and net exports.
   • Discussion on the limitations of GDP as a measure of economic well-being and alternative indicators.
3. Unemployment and Inflation:
   • Examination of the types of unemployment: frictional, structural, cyclical, and seasonal.
   • Discussion on the causes and consequences of inflation, including demand-pull and cost-push inflation.
   • Exploration of the relationship between unemployment and inflation, including the Phillips Curve.
4. Aggregate Demand and Aggregate Supply:
   • Analysis of the Aggregate Demand (AD) and Aggregate Supply (AS) model.
   • Exploration of factors that shift AD and AS, and their impact on the overall economy.
   • Discussion on macroeconomic equilibrium and how it determines the level of output and prices in the economy.
5. Fiscal Policy:
   • Overview of government spending and taxation as tools for managing economic activity.
   • Analysis of the effects of expansionary and contractionary fiscal policies on the economy.
   • Discussion on the challenges of fiscal policy, including timing, crowding out, and the national debt.
6. Monetary Policy:
   • Exploration of the role of central banks in managing the money supply and interest rates.
   • Discussion on the tools of monetary policy, including open market operations, reserve requirements, and the discount rate.
   • Analysis of the impact of monetary policy on inflation, unemployment, and economic growth.
7. Economic Growth and Productivity:
   • Examination of the factors that contribute to long-term economic growth, including capital accumulation, technological innovation, and human capital development.
   • Discussion on the role of productivity in improving living standards and reducing poverty.
   • Exploration of the challenges to sustaining economic growth, such as resource depletion and environmental concerns.
8. International Trade and Finance:
   • Overview of the benefits and costs of international trade, including comparative advantage and trade barriers.
   • Discussion on exchange rates and their impact on trade balances and economic stability.
   • Analysis of the role of international financial institutions, such as the IMF and World Bank, in global economic governance.
9. Interactive Features of the Test Bank:
   • Multiple-Choice Questions: Test students’ understanding of key macroeconomic concepts and theories.
   • True/False Questions: Assess comprehension of fundamental macroeconomic principles.
   • Short Answer Questions: Encourage students to articulate their understanding of macroeconomic models and policies.
   • Essay Questions: Provide opportunities for in-depth analysis of macroeconomic issues and real-world applications.
   • Case Studies: Present scenarios that require students to apply macroeconomic theories to current economic events.

Conclusion:

The test bank for “The Macro Economy Today,” 15th Edition by Bradley Schiller, is a vital tool for educators and students alike. It offers a variety of question formats and case studies that help reinforce the material covered in the textbook, enabling students to grasp complex macroeconomic concepts and apply them to real-world situations. By engaging with this test bank, students can develop a deeper understanding of macroeconomic principles and their relevance to today’s global economy, preparing them for success in both academic and professional settings.