Contents
Chapter 1 The Economic Approach 1
Chapter 2 Tools of the Economist 36
Chapter 3 Supply, Demand, and the Market Process 84
Chapter 4 Supply and Demand: Applications and Extensions 158
Chapter 5 Difficult Cases for the Market and the Role of Government 220
Chapter 6 The Economics of Collective Decision Making 248
Chapter 7 Consumer Choice and Elasticity 279
Chapter 8 Costs and the Supply of Goods 323
Chapter 9 Price Takers and the Competitive Process 366
Chapter 10 Price-Searcher Markets with Low Entry Barriers 418
Chapter 11 Price-Searcher Markets with High Entry Barriers 461
Chapter 12 The Supply of and Demand for Productive Resources 513
Chapter 13 Earnings, Productivity, and the Job Market 548
Chapter 14 Investment, the Capital Market, and the Wealth of Nations 565
Chapter 15 Income Inequality and Poverty 584
Chapter 16 Gaining from International Trade 607
Special Topic 1 Government Spending and Taxation 649
Special Topic 2 The Internet: How Is It Changing the Economy? 661
Special Topic 3 The Economics of Social Security 670
Special Topic 4 The Stock Market: Its Function, Performance, and Potential as an Investment Opportunity 680
Special Topic 5 The Economics of Health Care 692
Special Topic 6 School Choice: Can It Improve the Quality of Education in America? 702
Special Topic 7 Is Discrimination Responsible for the Earnings Differences
Between Men and Women? 712
Special Topic 8 Do Labor Unions Increase the Wages of Workers? 720
Special Topic 9 Are We Running Out of Resources? 732
Special Topic 10 Difficult Environmental Cases and the Role of Government 742
Preface
This test bank contains over 4,000 questions. The questions are organized by the major headings within each chapter (or special topic) of Microeconomics: Private and Public Choice. Similar questions under each major heading are also grouped together. This makes it easy for instructors to assemble balanced quizzes and examinations that reflect their preferences.
The first ten questions of each chapter (and the first five questions of each special topic) are designed for use as a quiz. The Coursebook and online practice questions, which can be found on the textbook’s support Web site at http://www.academic.cengage.com/economics/gwartney, provide students with approximately 15 study questions for each chapter and 10 for each special topic. The multiple-choice questions from those sources are also contained in the test bank and designated as such. Many instructors will want to integrate the questions from these sources into their quizzes and exams in order to provide their students with a strong incentive to work through these questions. Although the Coursebook and online questions are different than those in the test bank, they focus on the same concepts. Clearly, studying the Coursebook and online questions will help prepare students for their exams.
ExamView, the computerizedtestingsoftware that accompanies Microeconomics: Private and Public Choice, contains all of the questions in the printed test bank. Using ExamView, instructors can add or edit questions, instructions, and answers, and select questions by previewing them onscreen, selecting them randomly, or selecting them bycriteria. ExamView can automatically scramble questions, multiple-choice options, and questionsections, if instructors choose to do so to create different test versions.Instructors can also create and administerquizzes online via the Internet, a local-area network (LAN), or a wide-area network (WAN) using ExamView.
Joe Calhoun of Florida State University played a leading role in the revision of this test bank. We know how important it is for you to have a quality test bank. We believe this supplement will provide you with an integrated package of quality questions—a powerful tool with which to motivate your students to perform at a higher level. If you have comments or suggestions for its improvement, we would be delighted to hear from you.
Joseph Calhoun
James Gwartney
David Macpherson
Russell Sobel
Richard Stroup