Preface
Test Bank I contains more than 6,600 multiple-choice and true-false questions. I have created over 1,000 new questions for this edition; the remaining ones have been checked and refined to ensure compatibility with the 17th edition.
Test Bank I continues to be accurate, functional, and user-friendly.
1.New questions: All new questions are so identified. This will provide long-time users of Economics with a fresh set of questions. Some “new” questions appeared in the previous edition but continue to be designated as new if they were moved to a different chapter as part of the reorganization of content. Some new questions may look familiar but have had some substantive revision that is worth noting.
2.Grouping by topic: As in previous editions, questions are grouped by topic and sequenced in the same order as the text material. A table at the beginning of each Test Bank chapter lists the topics and corresponding question numbers. Each topic has been numbered for easy reference. This sequencing should reduce the time required to make up well-balanced exams.
3.Consider This and Last Word questions: Test Bank I contains and identifies two or three questions on each Consider This and Last Word vignette.
4.Coding: Each item contains a code that identifies the particular type of question. These codes are found above each question, and include Application of concept; Definition; Graphical analysis, and so forth. Former users of Test Bank I have found these codes useful in preparing exams and in identifying the types of questions missed by students.
5.Page references: Each question includes a 17thedition page reference. To aid instructors who are using the paperback split volumes, I list three separate page numbers: ECON indicates the Economics page number; MACRO indicates the Macroeconomics split volume page number; and MICRO indicates the Microeconomics split volume page number.
All Test Bank I questions are also available in the EZ Testtest generating system for PCs and Macintosh computers. Contact your McGraw-Hill/Irwin sales representative for more information.
I wish to thank Ben Pappas, Becca Hicks, and Kimberly Hooker for their assistance and Becky Szura for her expertise in creating the EZ Test version.
Randy R. Grant
Conversion Chart
There are three versions of the 17th edition of McConnell/Brue: Economics, Macroeconomics, andMicroeconomics. Test Bank I follows the chapter order of Economics. The conversion chart below shows how the TestBank I/Economics chapters correspond with the chapters in the split versions:
Economics/TB I ChapterMacroeconomics ChapterMicroeconomics Chapter
1-51-51-5
6-176-17***
18-34***6-22
35-3618-1923-24
14W14W***
16W16W***
27W***15W
Bold type indicates chapters common to all three titles.
*** indicates chapters that do not appear in a particular split version of the text.
W indicates chapters that are available only at the text’s website,
Table of Contents
Ch 1Limits, Alternatives, and Choices...... 1
Ch 2The Market System and the Circular Flow...... 68
Ch 3Demand, Supply and Market Equilibrium...... 90
Ch 4The U.S. Economy: Private and Public Sectors...... 135
Ch 5The United States in the Global Economy...... 175
Ch 6Measuring Domestic Output and National Income...... 199
Ch 7Introduction to Economic Growth and Instability...... 236
Ch 8Basic Macroeconomic Relationships...... 265
Ch 9The Aggregate Expenditures Model...... 309
Ch 10Aggregate Demand and Aggregate Supply...... 362
Ch 11Fiscal Policy, Deficits, and Debt...... 398
Ch 12Money and Banking ...... 444
Ch 13Money Creation...... 467
Ch 14Interest Rates and Monetary Policy...... 494
Ch 14WFinancial Economics...... 550
Ch 15Extending the Analysis of Aggregate Supply...... 587
Ch 16Economic Growth...... 616
Ch 16WThe Economics of Developing Countries...... 634
Ch 17Disputes over Macro Theory and Policy...... 655
Ch 18Extensions of Demand and Supply Analysis...... 686
Ch 19Consumer Behavior and Utility Maximization...... 730
Ch 20The Costs of Production...... 767
Ch 21Pure Competition...... 812
Ch 22Pure Monopoly...... 862
Ch 23Monopolistic Competition and Oligopoly...... 908
Ch 24Technology, R&D, and Efficiency...... 961
Ch 25The Demand for Resources...... 988
Ch 26Wage Determination...... 1023
Ch 27Rent, Interest, and Profit...... 1060
Ch 27WResource and Energy Economics...... 1081
Ch 28Government and Market Failure...... 1118
Ch 29Public Choice Theory and the Economics of Taxation...... 1141
Ch 30Antitrust Policy and Regulation...... 1171
Ch 31Agriculture: Economics and Policy...... 1194
Ch 32Income Inequality and Poverty...... 1217
Ch 33The Economics of Health Care...... 1246
Ch 34Labor Market Institutions and Issues: Unionism, Discrimination, Immigration ...... 1267
Ch 35International Trade...... 1300
Ch 36Exchange Rates, the Balance of Payments, and Trade Deficits...... 1337