TEST BANK FOR INTRODUCTORY ECON AND INTRODUCTORY MACROECON AND INTRODUCTORY MICROECON VESETH 283 PGS

TEST BANK with Complete Questions and Solutions. To clarify, this is the TEST BANK, not the textbook. You get immediate access to download your test bank. You will receive a complete test bank; in other words, all chapters will be there. Test banks come in PDF format; therefore, you do not need specialized software to open them. TEST BANK FOR INTRODUCTORY ECONOMICS AND INTRODUCTORY MACROECONOMICS AND INTRODUCTORY MICROECONOMICS JOHN G. MARCIS and MICHAEL VESETH (Auth.) Chapter Conversion Table The following table keys the chapter numbers for Introductory Economics to those in each of the companion paperbacks. Corresponding Chapter in Introductory Introductory Macro- Micro- Introductory Economics Chapter economics economics Chapter 1 Chapter 2 Chapter 3 Chapter 4 Chapter 5 Chapter 6 Chapter 7 Chapter 8 Chapter 9 Chapter 10 Chapter 11 Chapter 12 Chapter 13 Chapter 14 Chapter 15 Chapter 16 Chapter 17 Chapter 18 Chapter 19 Chapter 20 Chapter 21 Chapter 22 Chapter 23 Chapter 24 Chapter 25 Chapter 26 Chapter 27 Chapter 28 Chapter 29 Chapter 30 Chapter 31 Chapter 32 Macroeconomic Problems Supply and Demand The Problem of Unemployment Understanding Inflation Measuring Economic Activity Aggregate Demand Aggregate Supply and the Economy Fiscal Policy Money and Banking Money, Credit, and the Economy Monetary versus Fiscal Policy The Monetarists International Trade The Foreign Exchange Market International Economics Problems, Goals, and Trade-Offs Scarcity arid Choice Specialization Demand and Supply: The Micro Side Markets at Work Consumer Choice Production and Cost Producer Choice: Monopoly Producers in Competitive Markets Imperfect Competition Labor Markets Capital and Natural Resource Markets Energy Markets Free Market Choice Market Failures: Externalities Market Failures: Monopolies Scarcity and Choice: The Poverty Problem 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 vii MACROECONOMIC PROBLEMS 1 Roman set numbers in parentheses refer to pages where the material is discussed in both Introductory Economics, andlntroductory Macroeconomics. 1. According to Veseth, which of the following situations is the most likely topic of discussion in a class on "macroeconomics"? (6) a. An increase in the price of hamburgers. B. An increase in the unemployment rate. c. An increase in the production of a particular company. d. An increase in the number of producers of a product. e. An increase in the wage rate paid construction workers. 2. According to Veseth, which of the following situations is the most likely topic of discussion in a class on "microeconomics"? (6) a. An increase in governmental taxes. b. An increase in governmental spending. c. An increase in the unemployment rate. D. An increase in the price of a resource used to produce a particular product. e. An increase in the rate of inflation. 3. According to Veseth, in which of the following decades has unemployment been considered the most serious problem? (8, 9) a. The 1950s. B. The 1930s. c. The 1960s. d. The 1940s. e. The 1970s. 4. According to Veseth, during which of the following decades has inflation been considered the most serious economic problem? (14-15) a. The 1930s. b. The 1940s. c. The 1950s. d. The 1960s. E. The 1970s. 5. If real gross national product is used as a measure of economic growth, during which of the following decades was economic growth in the United States the greatest? (12-13) a. The 1930s. b. The 1940s. c. The 1950s. D. The 1960s. e. The 1970s. 6. During the decade of the 1960s, economists observed the "Phillips curve phenomenon" in the United States. Which of the following statements, if any, best describes the Phillips curve relationship? (13-14) a. Unemployment can only be reduced by reducing inflation. b. Employment increases as unemployment falls. c. Any policy that increases inflation also increases unemployment. d. As unemployment increases, there is no change in the rate of inflation. E. None of the other responses is correct. 7. One explanation of the Phillips curve which has been proposed is that of the "wage-lag" theory. This theory maintains that inflation can temporarily reduce unemployment because inflation tends to: (13, 14) a. increase the supply of labor. B. increase business profits. c. cause productivity to lag behind wages. d. increase the purchasing power of the dollar in foreign markets. e. increase the purchase of agricultural products where more workers are needed. 1 2 CHAPTER 1 8. According to Veseth, a major contributor to the stagnation era of 1974-1975 was: (15-16) a. the large increases in the exportation of wheat to the Soviet Union. b. the leftward movement of the Phillips curve. c. the manner in which the government "redefined" who was employed and who was unemployed. D. the embargo on oil shipments imposed by the Organization of Petroleum Exporting Countries (OPEC). e. the manner in which the government "redefined" how the rate of inflation was calculated. 9. There have been a number of theoretical attempts to explain the disappearance of the Phillips curve during the 1970s. Which of the following statements, if any, would not explain the disappearance of the Phillips curve? (16-17) A. Inflation is now more of a "demand-pull" phenomenon than a "cost-push"phenomenon. b. Expectations concerning the occurrence of inflation have changed. c. Inflation today is heavily influenced by rising oil prices. d. Consumers have become more sophisticated in the manner in which they anticipate inflation. e. The increases in demand which led to higher prices would, through the wage-lag mechanism, cause employment to rise also. 10. Suppose that the Phillips curve works in the manner which is described in the text. If this relationship holds, an increase in the rate of inflation will result in: (13-14) a. an increase in the unemployment rate b. an...

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