Macroeconomics Principles and Policy 13th Edition by William J. Baumol – Test Bank

1. Scarcity and choice are the basic problems of economics; the supply and demand mechanism is the basic investigative tool of economics.

  a.  True

  b.  False

ANSWER:   True

POINTS:   1

DIFFICULTY:   Easy

LEARNING OBJECTIVES:   DISC: Supply and demand

NATIONAL STANDARDS:   United States – BPROG: Analytic

ACCREDITING STANDARDS:   Supply and demand

TOPICS:   The Invisible Hand

KEYWORDS:   BLOOM’S: Knowledge

2. Governments of market-oriented economies never tamper with the price mechanism.

  a.  True

  b.  False

ANSWER:   False

POINTS:   1

DIFFICULTY:   Easy

LEARNING OBJECTIVES:   DISC: The role of government

NATIONAL STANDARDS:   United States – BPROG: Analytic

ACCREDITING STANDARDS:   The role of government

TOPICS:   The Invisible Hand

KEYWORDS:   BLOOM’S: Knowledge

3. George Washington’s troops at Valley Forge were almost destroyed by price controls.

  a.  True

  b.  False

ANSWER:   True

POINTS:   1

DIFFICULTY:   Easy

LEARNING OBJECTIVES:   DISC: The role of government

NATIONAL STANDARDS:   United States – BPROG: Analytic

ACCREDITING STANDARDS:   The role of government

TOPICS:   The Invisible Hand

KEYWORDS:   BLOOM’S: Knowledge

4. Very few societies have used price controls.

  a.  True

  b.  False

ANSWER:   False

POINTS:   1

DIFFICULTY:   Easy

LEARNING OBJECTIVES:   DISC: The role of government

NATIONAL STANDARDS:   United States – BPROG: Analytic

ACCREDITING STANDARDS:   The role of government

TOPICS:   The Invisible Hand

KEYWORDS:   BLOOM’S: Knowledge

5. The laws of supply and demand did not apply to elephant tusks.

  a.  True

  b.  False

ANSWER:   False

POINTS:   1

DIFFICULTY:   Moderate

LEARNING OBJECTIVES:   DISC: Supply and demand

NATIONAL STANDARDS:   United States – BPROG: Analytic

ACCREDITING STANDARDS:   Supply and demand

TOPICS:   The Invisible Hand

KEYWORDS:   BLOOM’S: Knowledge

6. “Demand” is a series of quantities demanded, one for each person in the market.

  a.  True

  b.  False

ANSWER:   False

POINTS:   1

DIFFICULTY:   Easy

LEARNING OBJECTIVES:   DISC: Supply and demand

NATIONAL STANDARDS:   United States – BPROG: Analytic

ACCREDITING STANDARDS:   Supply and demand

TOPICS:   Demand and Quantity Demanded

KEYWORDS:   BLOOM’S: Comprehension