Alternate Test Bank

to accompany Principles of Economics, Second Edition N. Gregory Mankiw Harvard University

Prepared by Bryce Kanago University of Northern Iowa and Penny Kugler Central Missouri State University

Preface
This test bank supplements Mankiws Principles of Economics, Second Edition and the original test bank volumes. It contains approximately 50 questions for each chapter of the textbook. For each chapter, the Alternate Test Bank provides two tests (A and B) of about 25 multiple choice questions each. Test A in each chapter consists of original questions. Test B contains questions that are picked up from previous test banks and online quizzes. Questions that are repeated from online quizzes are noted with bold letters for convenience in selecting appropriate test questions. Each test is designed to offer comprehensive coverage of the textbook chapter. Codes Each test is coded to reflect the types of question and the chapter sections that the questions test. Answers are given with each test question. The codes that follow each test question are defined below. Question Type M = multiple-choice question Key 1 D = definition/factual question G = graphing question C = complex analysis/critical thinking question E = equation T = tabular question Section The number used here indicates the chapter section the question tests. Section numbers in the textbook are communicated with the main headings in blue borders. Objective The number used here indicates the chapter learning objective the question is testing. Chapter objectives in the textbook are listed in blocks on the right side of each chapters first page. Variations This test bank is also available in Microsoft Word. Contact your local Harcourt representative or visit the instructor's portion of the Web site for more information: www.harcourtcollege.com/econ/mankiw. To use the Alternate Test Bank with a version of Mankiws textbook other than the hardcover Principles of Economics, compare the columns of the Comparative Table of Contents below to the version of the text youre using to see how chapters are shared among the five versions of the textbook.

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Comparative Table of Contents

Principles of Economics
Part One Introduction
1. Ten Principles of Economics 2. Thinking Like an Economist 3. Interdependence and the Gains from Trade Micro Macro Brief Macro Essentials

Part Two Supply and Demand I: How Markets Work

4. The Market Forces of Supply and Demand 5. Elasticity and Its Application 6. Supply, Demand, and Government Policies

Part Three Supply and Demand II: Markets and Welfare

7. Consumers, Producers, and the Efficiency of Markets 8. Application: The Costs of Taxation 9. Application: International Trade

Part Four The Economics of the Public Sector

10. Externalities 11. Public Goods and Common Resources 12. The Design of the Tax System

Part Five Firm Behavior and the Organization of Industry

13. The Costs of Production 14. Firms in Competitive Markets 15. Monopoly 16. Oligopoly 17. Monopolistic Competition

Part Six The Economics of Labor Markets

18. The Markets for the Factors of Production 19. Earnings and Discrimination 20. Income Inequality and Poverty

Part Seven Advanced Topic

21. The Theory of Consumer Choice

Part One 1 2 3 Part Two 4 5 6 Part Three 7 8 9 Part Four 10 11 12 Part Five 13 14 15 16 17 Part Six 18 19 20 Part Seven 21

Part One 1 2 3 Part Two 4 5 6 Part Three 7 8 9

Part One 1 2 3 Part Two 4

Part One 1 2 3 Part Two 4 5 6 Part Three 7 8 9 Part Four 10 11 Part Five 12 13 14

Part Eight The Data of Macroeconomics

22. Measuring a Nations Income 23. Measuring the Cost of Living

Part Nine The Real Economy in the Long Run

24. Production and Growth 25. Saving, Investment, and the Financial System 26. Unemployment and Its Natural Rate

Part Ten Money and Prices in the Long Run

27. The Monetary System 28. Money Growth and Inflation

Part Eleven The Macroeconomics of Open Economies

29. Open-Economy Macroeconomics: Basic Concepts 30. A Macroeconomic Theory of the Open Economy

Part Twelve Short-Run Economic Fluctuations

31. Aggregate Demand and Aggregate Supply 32. The Influence of Monetary and Fiscal Policy on Aggregate Demand 33. The Short-Run Tradeoff between Inflation and Unemployment

Part Four 10 11 Part Five 12 13 14 Part Six 15 16 Part Seven 17 18 Part Eight 19 20 21 Part Nine 22

Part Three 5 6 Part Four 7 8 9 Part Five 10 11 Part Six 12 13 Part Seven 14 15 16 Part Eight 17

Part Six 15 16 Part Seven 17 18 19 Part Eight 20 21

Part Nine 22 23

Part Thirteen Final Thoughts

34. Five Debates over Macroeconomic Policy

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Table of Contents
Chapter1TenPrinciplesofEconomics Chapter2ThinkingLikeanEconomist Chapter3InterdependenceandtheGainsfromTrade Chapter4TheMarketForcesofSupplyandDemand Chapter5ElasticityandItsApplication Chapter6Supply,Demand,andGovernmentPolicies Chapter7Consumers,Producers,andtheEfficiencyofMarkets Chapter8Application:TheCostsofTaxation Chapter9Application:InternationalTrade Chapter10Externalities Chapter11PublicGoodsandCommonResources Chapter12TheDesignoftheTaxSystem Chapter13TheCostsofProduction Chapter14FirminCompetitiveMarkets Chapter15Monopoly Chapter16Oligopoly Chapter17MonopolisticCompetition Chapter18TheMarketsfortheFactorsofProduction Chapter19EarningsandDiscrimination Chapter20IncomeInequalityandPoverty Chapter21TheTheoryofConsumerChoice Chapter22MeasuringaNation'sIncome Chapter23MeasuringtheCostofLiving Chapter24ProductionandGrowth Chapter25Saving,Investment,andtheFinancialSystem Chapter26UnemploymentandItsNaturalRate Chapter27TheMonetarySystem Chapter28MoneyGrowthandInflation Chapter29OpenEconomyMacroeconomics:BasicConcepts Chapter30AMacroeconomicTheoryoftheOpenEconomy Chapter31AggregateDemandandAggregateSupply Chapter32TheInfluenceofMonetaryandFiscalPolicyonAggregateDemand Chapter33TheShortRunTradeoffbetweenInflationandUnemployment Chapter34FiveDebatesoverMacroeconomicPolicy
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