Economic Test Bank

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Test Bank 1
to accompany

Economics
Sixteenth Edition

Campbell R. McConnell University of Nebraska Stanley L. Brue Pacific Lutheran University

Prepared by Stanley L. Brue Pacific Lutheran University

Test Bank 1 to accompany ECONOMICS Campbell R. McConnell and Stanley L. Brue Published by McGraw-Hill, an imprint of The McGraw-Hill Companies, Inc., 1221 Avenue of the Americas, New York, NY 10020. Copyright  2005 by The McGraw-Hill Companies, Inc. All rights reserved. The contents, or parts thereof, may be reproduced in print form solely for classroom use with ECONOMICS provided such reproductions bear copyright notice, but may not be reproduced in any other form or for any other purpose without the prior written consent of The McGraw-Hill Companies, Inc., including, but not limited to, in any network or other electronic storage or transmission, or broadcast for distance learning.

1 2 3 4 5 6 7 8 9 0 Text printer code/Cover printer code 0 9 8 7 6 5 4 ISBN 0-07-288479-7

www.mhhe.com

Table of Contents

1 2 3 3W 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39W 40W

The Nature and Method of Economics ................................................................ 1 The Economizing Problem................................................................................. 31 Individual Markets: Demand and Supply........................................................... 69 Applications and Extensions of Supply and Demand Analysis ....................... 109 The Market System .......................................................................................... 125 The U.S. Economy: Private and Public Sectors ............................................... 141 The United States in the Global Economy ....................................................... 175 Measuring Domestic Output and National Income.......................................... 197 Introduction to Economic Growth and Instability............................................ 229 Basic Macroeconomic Relationships ............................................................... 253 The Aggregate Expenditures Model ................................................................ 289 Aggregate Demand and Aggregate Supply...................................................... 335 Fiscal Policy ..................................................................................................... 369 Money and Banking ......................................................................................... 403 How Banks and Thrifts Create Money............................................................. 433 Monetary Policy ............................................................................................... 455 Extending the Analysis of Aggregate Supply .................................................. 489 Economic Growth ............................................................................................ 515 Deficits, Surpluses, and the Public Debt .......................................................... 531 Disputes over Macro Theory and Policy.......................................................... 547 Elasticity of Demand and Supply..................................................................... 575 Consumer Behavior and Utility Maximization ................................................ 611 The Costs of Production................................................................................... 647 Pure Competition.............................................................................................. 687 Pure Monopoly................................................................................................. 731 Monopolistic Competition and Oligopoly........................................................ 773 Technology, R&D, and Efficiency................................................................... 819 The Demand for Resources...
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