Test Bank For Principles of Macroeconomics Sixth Canadian Edition Canadian 6Th Edition Mankiw Kneebone and Mckenzie 0176530851 9780176530853

Test Bank for Principles of Macroeconomics Sixth Canadian
Edition Canadian 6th Edition Mankiw Kneebone and

McKenzie 0176530851 9780176530853
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Chapter 2—Thinking Like an Economist
MULTIPLE CHOICE
1. Which statement best describes the way economists study the economy?
a. Economists study the past, but do not try to predict the future.
b. Economists use a probabilistic approach based on correlations between economic events.
c. Economists devise theories, collect data, and then analyze the data to test the theories.
d. Economists use controlled experiments much the same way a biologist or physicist does.
ANS: C PTS: 1 DIF: Average REF: p. 21-22

BLM: Remember NOT: Macro TB_2-1
2. Which are terms used by an economist?

a. vector spaces and axioms
b. torts and venues
c. ego and cognitive dissonance
d. comparative advantage and elasticity
ANS: D PTS: 1 DIF: Average REF: p. 22-24

3. What is meant by scientific method?

a. the use of modern electronic testing equipment to understand the world
b. the dispassionate development and testing of theories about how the world works
d.
ANS: REF: p. 22-24

BLM:
c. the use of controlled experiments in understanding the way the world works
d. finding evidence to support preconceived theories about how the world works
ANS: B PTS: 1 DIF: Average REF: p. 22-24

4. Who said, “The whole of science is nothing more than a refinement of everyday thinking”? a. Isaac
Newton
b. Albert Einstein
c. Sigmund Freud
d. Stephen Hawking
ANS: B PTS: 1 DIF: Easy REF: p. 22-24

5. What observation did Albert Einstein once make about science?

a. “The whole of science is nothing more than a refinement of everyday thinking.”
b. “The whole of science is nothing more than an interesting intellectual exercise.”
c. “In order to understand science, one must rely solely on abstraction.”
d. “In order to understand science, one must transcend everyday thinking.”
ANS: A PTS: 1 DIF: Average REF: p. 22-24

6. Sir Isaac Newton developed the theory of gravity after observing an apple fall from a tree. What is this
an example of?
a. a controlled experiment used to develop scientific theory
b. being in the right place at the right time
c. an idea whose time had come
the interplay between observation and theory in science
D PTS: 1 DIF: Average
Remember NOT: Macro TB_2-6
7. What is a common thread between economics and other sciences, such as physics?
a. Experiments are most often conducted in a lab.
b. Real-world observations often lead to theories.
d.
ANS: REF: p. 22-24

BLM:
c. They deal with similar phenomena.

d. They deal primarily with abstract concepts.

8. Why is the use of theory and observation more difficult in economics than in sciences, such as physics?
a. It is difficult to evaluate an economic experiment.
b. It is difficult to devise an economic experiment.
c. It is difficult to actually perform an experiment in an economic system.
d. It is difficult to collect sufficient data.

9. Because it is difficult for economists to use experiments to generate data, what must they generally do?
a. do without data
b. use whatever data the world gives them
c. select a committee of economists to make up data for all economists to use
d. use hypothetical, computer-generated data

10. What happens when economists test theories?

a. They must make do with whatever data the world gives them.
b. They can manipulate conditions easier than other scientific fields.
c. They can enlist the government’s help to manipulate economic conditions.
d. They can achieve statistically valid results with much smaller sample sizes.

11. Which of the following is one difficulty economists face that some other scientists do not?
d.
ANS: REF: p. 22-24

BLM:
a. Unlike other sciences, economic studies must include the largest economic player, the
government.
b. Economists unfortunately receive less government funding than other scientists.
c. Corporations are reluctant to disclose necessary information for economic research.
d. Experiments are often difficult to conduct in economics.
ANS: D PTS: 1 DIF: Average REF: p. 22-24

12. Where do the most common data for testing economic theories come from?
a. carefully controlled and conducted laboratory experiments
b. traditional economies
c. historical episodes of economic change
centrally planned economies
C PTS: 1 DIF: Average
Remember NOT: Macro TB_2-12
13. For economists, what are often used as substitutes for laboratory experiments?
a. natural experiments offered by history
b. computer-generated experiments
c. studies conducted by other disciplines, such as sociologists
d. well-constructed simulations

14. Why do economists make assumptions?

a. to diminish the chance of wrong answers
b. to make the world easier to understand
c. because all scientists make assumptions
d. to make certain that all necessary variables are included

15. Which of the following does the art of scientific thinking include?
d.
ANS: REF: p. 22-24

BLM:
a. knowledge of human behaviour

b. understanding every scientific field, including physics, biology, and economics
c. deciding which assumptions to make
d. being able to mathematically express natural forces
ANS: C PTS: 1 DIF: Average REF: p. 23

16. If an economist develops a theory about international trade based on the assumption that there are only
two countries and two goods, what is most likely?
a. The theory can be useful only in situations involving two countries and two goods.
b. It is a total waste of time, since the actual world has many countries trading many goods.
c. The theory can be useful in helping economists understand the complex world of international
trade involving many countries and many goods.
d. The theory can be useful in the classroom, but has no use in the real world.

BLM: Higher Order NOT: Macro TB_2-16
17. Why are historical episodes valuable to economists?

a. They allow economists to see how far the discipline has evolved.
b. Hindsight is always 20/20.
c. It is easier to evaluate a past situation than to predict a future situation.
d. They allow economists to evaluate economic theories of the present.
ANS: D PTS: 1 DIF: Average REF: p. 23

18. What is a good theory?

a. a widely accepted theory
b. a theory that starts from realistic assumptions
c. a theory that helps us understand how the world works
a theory where no logical mistakes were made in developing it
C PTS: 1 DIF: Challenging Higher Order
NOT: Macro TB_2-18
19. What is the goal of theories?

d.
ANS: REF: p. 22-24

BLM:
a. to provide an interesting, but not useful, framework of analysis

b. to provoke stimulating debates in scientific journals
c. to demonstrate that the developer of the theory is capable of logical thinking
d. to help scientists understand how the world works
ANS: D PTS: 1 DIF: Easy REF: p. 23

20. When economists attempt to simplify the real world and make it easier to understand, what do they do?
a. They make assumptions.
b. They make mistakes in judgment.
c. They make predictions.
d. They make evaluations.
ANS: A PTS: 1 DIF: Easy REF: p. 23

21. What can good assumptions do?

a. cause economists to leave out important variables that make their theories worthless
b. simplify the complex world and make it easier to understand
c. further complicate an already difficult topic
d. allow economists to see the “big picture” instead of only small segments
ANS: B PTS: 1 DIF: Average REF: p. 23

22. How does a scientist make assumptions?

a. A scientist chooses the assumptions that best prove a desired result.
b. A scientist chooses the assumptions that best describe reality.
c. A scientist chooses the assumptions that would be most widely accepted.
d. A scientist chooses the assumptions that best capture the essential features of the problem.
ANS: D PTS: 1 DIF: Easy REF: p. 22-24

d.
ANS: REF: p. 22-24

BLM:
23. What makes a model compelling?

a. its mathematical structure
b. its simplicity
c. its predictions
d. its assumptions
ANS: C PTS: 1 DIF: Easy REF: p. 22-24

24. What happens when scientists make good assumptions?

a. They greatly simplify the problem without substantially affecting the answer.
b. They further complicate an already complicated subject.
c. They can leave out necessary variables that may result in incorrect answers.
d. They may not be able to reach an appropriate conclusion.
25. Which of the following is an example of a product that experiences infrequent price changes?
a. stocks on the Toronto Stock Exchange
b. gasoline
c. the newsstand price of magazines
d. gold in international markets

26. When studying the effects of public policy changes, what have economists often observed?
a. There is a difference between the long run and the short run.
b. Unemployment and inflation are directly related in the short run.
c. With stock prices, what goes up must come down.
d. If the policy is well designed, it will always be effective.

27. When studying the effects of public policy changes, what do economists do?
a. They often falsify results if the desired effect is not reached.
b. They may make different assumptions for the long run and the short run.
c. They attempt to consider only the direct effects and not the indirect effects.
d. They can immediately change policies if they are ineffective.

28. What do good economic models do?

a. They often leave out important variables, causing serious errors.
b. They omit many details to allow us to see what is truly important.
c. They are designed to give a complete picture of a given relationship.
d. They leave economics to be interpreted in many ways by governments.

29. Why do economists use models?

a. to learn how the economy works
b. to make their profession appear more precise
c. to make economics accessible to the public
d. to make sure that all of the details of the economy are included in their analysis

30. Which of the following best describes economic models?

a. They are based on unrealistic assumptions.
b. They accurately describe the reality.
c. They allow economists to learn how the economy works.
d. They include as many variables as possible.

31. How do economists begin building an economic model?

a. by writing grants for government funding
b. by conducting controlled experiments in a lab
c. by making assumptions
d. by reviewing statistical forecasts

32. What is a model?

a. a theoretical abstraction with very little value
b. a useful tool to only the ones who constructed it
c. a realistic and carefully constructed theory
d. a simplification of real life

33. Which of the following is NOT a characteristic of economic models?

a. Models simplify reality.
b. Models can explain how the economy is organized.
c. Models assume away irrelevant details.
d. Models cannot be used to make predictions.
34. Which of the following is NOT a common characteristic of economic models?

a. They are often built using the tools of mathematics.
b. They are useful to economists, but not to policymakers.
c. They include only the important features of an economy.
d. They are built using assumptions.

35. Which of the following best describes economic models?

a. Economic models attempt to mirror reality exactly.
b. Economic models are useful, but should not be used for policymaking.
c. Economic models omit many details to allow us to see what is truly important.
d. Economic models cannot be used in the real world because they omit details.

36. What are the foundation stones from which economic models are built?
a. economic policies
b. legal systems
c. assumptions
d. statistical forecasts
ANS: C PTS: 1 DIF: Easy REF: p. 24

37. What is a circular-flow diagram?

a. a visual model of how the economy is organized
b. a mathematical model of how the economy works
c. a model that shows the effects of government on the economy
d. a visual model of the relationship between money, prices, and businesses
ANS: A PTS: 1 DIF: Average REF: p. 24

38. What does a circular-flow diagram do?

a. It illustrates cost–benefit analysis.
b. It explains how the economy is organized.
c. It shows the flow of traffic in an economic region.
d. It explains how banks circulate money in the economy.

39. What are factors of production?

a. the mathematical calculations firms make to determine production
b. weather and social and political conditions that affect production
c. the physical relationships between economic inputs and outputs
d. inputs into the production process

40. In the simple circular-flow diagram, who are the decision makers?
a. firms and government
b. households and firms
c. households and government
d. households, firms, and government
ANS: B PTS: 1 DIF: Easy REF: p. 25

41. What do the two loops in the circular-flow diagram represent?

a. the flow of goods and the flow of services
b. the flow of dollars and the flow of financial assets
c. the flow of inputs and outputs and the flow of dollars
d. the flow of capital goods and the flow of consumer goods

42. In a circular-flow diagram, which flows are involved?

a. Taxes flow from households to firms, and transfer payments flow from firms to households.
b. Income payments flow from firms to households, and sales revenue flows from households to
firms.
c. Resources flow from firms to households, and goods and services flow from households to firms.
d. Inputs and outputs flow in the same direction as the flow of dollars, from firms to households.
ANS: B PTS: 1 DIF: Challenging REF: p. 25
43. Which of the following is a characteristic of the circular-flow model?

a. Firms are sellers in the resource market and the product market.
b. Firms are buyers in the product market.
c. Households are sellers in the resource market.
d. Households are buyers in the resource market.
ANS: C PTS: 1 DIF: Challenging REF: p. 25

44. In the circular-flow diagram, which flows are involved?

a. Income from factors of production flows from firms to households.
b. Goods and services flow from households to firms.
c. Factors of production flow from firms to households.
d. Spending on goods and services flow from firms to households.
ANS: A PTS: 1 DIF: Challenging REF: p. 25

45. Which of the following would NOT be considered a factor of production?

a. labour
b. land
c. capital
d. money

46. What is another name for goods and services produced by firms?
a. factors of production
b. outputs
c. inputs
d. resources

47. Which of the following is a characteristic of factors of production?

a. They are used to produce goods and services.
b. They are owned by firms.
c. They are abundant in most economies.
d. They are used by both firms and households.

48. What is another term for factors of production?

a. inputs
b. outputs
c. goods
d. services

49. According to a simple circular-flow diagram, how many markets do households and firms interact in? a.
one type of market
b. two types of markets
c. three types of markets
d. four types of markets

50. In the simple circular-flow diagram, what do markets consist of?

a. the market for goods and services, the financial market, and the market for the factors of
production
b. the market for the factors of production and the financial market
c. the market for goods and services and the financial market
d. the market for goods and services and the market for factors of production

51. In the goods and services market, how do households and firms interact?
a. Households and firms are both buyers.
b. Households are sellers and firms are buyers.
c. Households are buyers and firms are sellers.
d. Households and firms are both sellers.
52. In the factors of production market, how do households and firms interact?
a. Households are sellers and firms are buyers.
b. Households are buyers and firms are sellers.
c. Households and firms are both buyers.
d. Households and firms are both sellers.

Figure 2-1
53. Refer to Figure 2-1. Which arrow shows the flow of goods and services?
a. arrow A
b. arrow B
c. arrow C
d. arrow D

54. Refer to Figure 2-1. Which arrow shows the flow of spending by households?
a. arrow A
b. arrow B
c. arrow C
d. arrow D
55. Refer to Figure 2-1. Which arrow shows the flow of the factors of production?
a. arrow A
b. arrow B
c. arrow C
d. arrow D

56. Refer to Figure 2-1. Which arrow shows the flow of income payments?
a. arrow A
b. arrow B
c. arrow C
d. arrow D

Figure 2-2
57. Refer to Figure 2-2. What do boxes A and B represent?

a. firms and households
b. government and the foreign sector
c. the goods and services market and the factors of production market
d. households and government
ANS: A PTS: 1 DIF: Challenging REF: p. 25

58. Refer to Figure 2-2. What do boxes C and D represent?

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Þar sem um Hjaltlands
Heimkynni þögul
Norðurhafs öldur
Ólmar freyða,
Stynja þar stormar,
Stúra brimboðar,
Lifandi veru
Líkar sorgröddum.
52. The raven was regarded as sacred, and greatly venerated by the old Norse Vikings, who
had always one or two of these birds in their ships. When setting out on marauding
expeditions the raven was let loose and his flight followed by the bold voyagers, in the
belief that he led them to war and victory. These birds it was supposed lived to a
fabulous age. Odin’s shield had a raven on it, and so had the Landeyda or battle-flag of
Sigurd, which ever led to victory, although its bearer was doomed to die. Hialtland is the
ancient name of Shetland. The Norse rovers thought it a disgrace to die in their beds in
peace; and when they found their end approaching, clad in armour, had themselves
carried on board their ships which were then set fire to and sent adrift, that the old
heroes might die, as they had lived, on the ocean, and thence worthily rise to Valhalla.
53. The “Death of the Old Norse King,” translated into Icelandic verse by the Rev. Olaf
Pálsson.
54. A rix dollar is equal in value to 2/3 English. A skilling is a fraction more than a farthing.
55. Extracted from the postscript to Mr. William Longman’s “Suggestions for the
Exploration of Iceland”—an address delivered to the members of the Alpine Club, of
which he is Vice-President.—Longman & Co., 1861.
56. This chapter, written in December 1859, has already appeared in the pages of a
periodical.—A.J.S.
57. These journals, while admitting, in a general though apologetic way, that great evils exist
in connection with slavery, yet, somehow, on every occasion, systematically and
persistently uphold pro-slavery measures and interests.
58. Fuller information and subsequent events in America have justified and amply
confirmed this estimate of Brown, formed at the time. Having had access to documents,
published and unpublished, and being in a position to judge, we would confidently refer
the reader to a volume of 452 pp. 8vo., since published by Smith, Elder & Co.—“The
Life and Letters of Captain John Brown, edited by Richard D. Webbe”—as presenting a
fair statement of the facts of the case. From Brown’s deeds and words, therein recorded,
it will be clearly seen, how calm, noble and dignified was the bearing of the man whom
short-sighted trimmers, on both sides the Atlantic, have attempted to brand as a fanatic.
59. See “Lay of the Vikings,” p. 278.
60. The antiquarian book to which we have already referred, erroneously attributes the
discovery to Garder, a Dane of Swedish origin. Our authority is Gísli Brynjúlfsson, the
Icelandic poet, now resident in Copenhagen, to whose kindness we are also indebted for
the copy of this work which we possess.
61. For these last, we would refer to Thorpe’s “Yuletide Stories,” Dasent’s “Popular Tales
from the Norse,” our own Nursery Lore, and to preceding Stories and Tales in this
appendix.
62. Mr. Dasent has since published an admirable translation of “Njal’s Saga,” which presents
a vivid picture of life in Iceland at the end of the tenth century.
63. See the preceding specimens of old Icelandic poetry.

Transcriber’s Notes
Note: Use of Icelandic diacritics by the author/printer is very inconsistent,
and usage has partly been regularized. All types of diacritics which have
historically not been used for Icelandic have been changed, as noted below.
Spelling of individual words has also been normalized where there was
variation. Otherwise, spelling of Icelandic words has been retained.
Obvious misspellings of English words and printer’s errors have been
changed. Hyphenation inconsistencies have been retained, except in cases
where a predominant form has been found.
Pg. vii: Proper name consistency: ‘Skaptar Jökel’ to ‘Skaptár Jökul’
Pg. vii: Punctuation consistency: ‘on Northern Subjects.’ to ‘on Northern Subjects’—Removed
period at end of TOC entry
Pg. vii: Proper name consistency: ‘Kötluja’s’ to ‘Kötlugjá’s’
Pg. vii: Corrected accent: ‘Sölar’ to ‘Sólar’
Pg. viii: Corrected accent: ‘Bruarâ’ to ‘Bruará’
Pg. viii: Proper name consistency: ‘Kötlujá’ to ‘Kötlugjá’
Pg. 12: Repeated word: ‘in in the time’ to ‘in the time’
Pg. 17: Hyphenation consistency: ‘on-goings’ to ‘ongoings’
Pg. 23: Hyphenation consistency: ‘flag-staff ’ to ‘flagstaff ’
Pg. 25: Corrected typo: ‘posseses’ to ‘possesses’
Pg. 26: Hyphenation consistency: ‘lambskin’ to ‘lamb-skin’
Pg. 29: Punctuation fix: ‘Mr’ to ‘Mr.’
Pg. 31: Punctuation fix: ‘Mr’ to ‘Mr.’
Pg. 37: Hyphenation consistency: ‘zigzagging’ to ‘zig-zagging’
Pg. 38: Corrected typo: ‘ROCKSOFF--’ to ‘ROCKS--OFF’
Pg. 43: Proper name consistency: ‘Aladin’ to ‘Aladdin’
Pg. 47: Proper name consistency: ‘Guldbringe’ to ‘Guldbringu’

Pg. 48: Punctuation fix: ‘their nests are lined’ to ‘their nests are lined.’—Added missing period
at para end
Pg. 49: Proper name consistency: ‘Gudmundson’ to ‘Gudmundsson’
Pg. 49: Proper name consistency: ‘Hjaltelin’ to ‘Hjaltalin’
Pg. 52: Punctuation fix: ‘cleanliness comfort and refinement’ to ‘cleanliness, comfort and
refinement’—Added missing comma
Pg. 55: Repeated word: ‘the the’ to ‘the’
Pg. 60: Corrected typo: ‘fastideous’ to ‘fastidious’
Pg. 62: Hyphenation consistency: ‘fire-side’ to ‘fireside’
Pg. 64: Corrected typo: ‘substanial’ to ‘substantial’
Pg. 64: Corrected typo: ‘supplimented’ to ‘supplemented’
Pg. 65: Corrected typo: ‘órfjálsum’ to ‘ófrjálsum’
Pg. 66: Corrected typo: ‘sgiri’ to ‘sigri’
Pg. 66: Hyphenation consistency: ‘church-yard’ to ‘churchyard’
Pg. 66: Hyphenation consistency: ‘buttercups’ to ‘butter-cups’
Pg. 66: Proper name consistency: ‘Hjaltelin’ to ‘Hjaltalin’
Pg. 66: Corrected accent: ‘höggí’ to ‘höggi’
Pg. 70: Corrected typo: ‘at each others’ to ‘at each other’s’—Added missing apostrophe
Pg. 76: Hyphenation consistency: ‘sea pink’ to ‘sea-pink’
Pg. 78: Hyphenation consistency: ‘Oxerâ’ to ‘Oxerá’
Pg. 81: Proper name consistency: ‘ALMANNAGJA’ to ‘ALMANNA GJÁ’
Pg. 81: Proper name consistency: ‘ALMANNAGJA’ to ‘ALMANNA GJÁ’
Pg. 82: Proper name consistency: ‘Oxerâ’ to ‘Oxerá’
Pg. 83: Proper name consistency: ‘OXERA’ to ‘OXERÁ’
Pg. 84: Proper name consistency: ‘Shakspeare’s ’ to ‘Shakspere’s ’
Pg. 85: Corrected accent: ‘tuns’ to ‘túns’

Pg. 86: Punctuation fix: ‘conceivable direction,’ to ‘conceivable direction.’—Comma at para
end
Pg. 90: Proper name consistency: ‘OXERA’ to ‘OXERÁ’
Pg. 94: Hyphenation consistency: ‘hillside’ to ‘hill-side’
Pg. 96: Hyphenation consistency: ‘Lauger-vatn’ to ‘Laugervatn’
Pg. 96: Hyphenation consistency: ‘Apa-vatn’ to ‘Apavatn’
Pg. 96: Hyphenation consistency: ‘Lauger-vatn’ to ‘Laugervatn’
Pg. 97: Hyphenation consistency: ‘stockfish’ to ‘stock-fish’
Pg. 102: Corrected accent: ‘thèr’ to ‘thér’
Pg. 102: Corrected accent: ‘thèr’ to ‘thér’
Pg. 105: Corrected accent: ‘BRUARA´’ to ‘BRUARÁ’
Pg. 106: Hyphenation consistency: ‘head-land’ to ‘headland’
Pg. 112: Proper name consistency: ‘Skaptar’ to ‘Skaptár’
Pg. 115: Hyphenation consistency: ‘day-light’ to ‘daylight’
Pg. 116: Spelling consistency: ‘Igdrasill’ to ‘Yggdrasill’
Pg. 117: Corrected typo: ‘minature’ to ‘miniature’
Pg. 125: Corrected accent: ‘Landnàmabok’ to ‘Landnámabok’
Pg. 129: Corrected typo: ‘asteriods’ to ‘asteroids’
Pg. 134: Proper name consistency: ‘SKAPTAR’ to ‘SKAPTÁR’
Pg. 135: Proper name consistency: ‘Skaptar’ to ‘Skaptár’
Pg. 138: Missing punctuation: ‘Faröe Islands. pp 30’ to ‘Faröe Islands, pp 30’—Period for
comma
Pg. 140: Hyphenation consistency: ‘Oxerâ’ to ‘Oxerá’
Pg. 146: Corrected typo: ‘girnmunst’ to ‘girnumst’
Pg. 147: Corrected typo: ‘vir’ to ‘vér’
Pg. 148: Proper name consistency: ‘Rändrop’ to ‘Randröp’

Pg. 148: Proper name consistency: ‘Rändrop’ to ‘Randröp’
Pg. 154: Spelling consistency: ‘amtmen’ to ‘amptmen’
Pg. 156: Punctuation fix: ‘312-323’ to ‘312-323.’—Added missing period
Pg. 157: Corrected accent: ‘Thiöthölfr’ to ‘Thióthólfr’
Pg. 158: Corrected typo: ‘Kleiservatn’ to ‘Kleifervatn’
Pg. 159: Corrected typo: ‘Bryujúlfsson’ to ‘Brynjúlfsson’
Pg. 161: Corrected accent: ‘JOKUL’ to ‘JÖKUL’—Added diaeresis for consistency
Pg. 163: Corrected typo: ‘Elldborg’ to ‘Eldborg’
Pg. 163: Apostrophe usage: ‘KÖTLUGJÁS’ to ‘KÖTLUGJÁ’S’
Pg. 164: Hyphenation consistency: ‘waterfloods’ to ‘water-floods’
Pg. 166: Corrected accent: ‘Kötlugjâ’ to ‘Kötlugjá’
Pg. 167: Corrected typo: ‘Eyaffialla’ to ‘Eyafialla’
Pg. 167: Proper name consistency: ‘Skaptafells-syssel’ to ‘Skaptáfells-syssel’
Pg. 167: Quote placement: ‘has ever occurred.’ to ‘has ever occurred.”’—Added missing close-
quote to quote end
Pg. 171: Corrected typo: ‘Hsfrsey’ to ‘Hafrsey’
Pg. 171: Hyphenation consistency: ‘west-ward’ to ‘westward’
Pg. 171: Hyphenation consistency: ‘east-ward’ to ‘eastward’
Pg. 171: Punctuation fix: ‘issue from Kötlugjá,’ to ‘issue from Kötlugjá.’—Comma for period
Pg. 172: Corrected typo: ‘counrty’ to ‘country’
Pg. 173: Hyphenation consistency: ‘over-flowed’ to ‘overflowed’
Pg. 176: Duplicate word: ‘the the’ to ‘the’
Pg. 176: Proper name consistency: ‘Guldbringé’ to ‘Guldbringu’

Pg. 176: Quote placement: ‘80 to 90 miles distant.”’ to ‘80 to 90 miles distant.’—Removed
extra close-quote
Pg. 177: Proper name consistency: ‘Markarflíót’ to ‘Markarfliót’
Pg. 178: Corrected accent: ‘aúdug’ to ‘audug’
Pg. 178: Corrected accent: ‘Fiflskù’ to ‘Fiflsku’
Pg. 178: Spelling consistency: ‘thángast’ to ‘thángad’
Pg. 182: Proper name consistency: ‘Huc’ to ‘Huk’
Pg. 183: Corrected accent: ‘skörsmidr’ to ‘skórsmidr’
Pg. 184: Corrected accent: ‘KOTLUGJA’ to ‘KÖTLUGJÁ’—Added diaeresis for consistency
Pg. 187: Proper name consistency: ‘SKAPTAR’ to ‘SKAPTÁR’
Pg. 189: Corrected typo: ‘distingushed’ to ‘distinguished’
Pg. 189: Extra punctuation: ‘lava. continued’ to ‘lava continued’—Removed extra period
Pg. 194: Proper name consistency: ‘Elldborg’ to ‘Eldborg’
Pg. 195: Proper name consistency: ‘Skeideræ’ to ‘Skeidará’
Pg. 195: Proper name consistency: ‘Skeideræ’ to ‘Skeidará’
Pg. 196: Proper name consistency: ‘Elldborg’ to ‘Eldborg’
Pg. 196: Corrected typo: ‘Heinabegr’s’ to ‘Heinaberg’s’
Pg. 196: Proper name consistency: ‘Skeidaræ’ to ‘Skeidarár’
Pg. 197: Proper name consistency: ‘Briedamerkasandr’ to ‘Breidamerkr-sandr’
Pg. 197: Proper name consistency: ‘Breidamerks’ to ‘Breidamerkr’
Pg. 190: Corrected typo: ‘Skuptaà’ to ‘Skaptaá’

Pg. 199: Hyphenation consistency: ‘Breida-fiords’ to ‘Breida fiords’
Pg. 205: Hyphenation consistency: ‘Buttercups’ to ‘Butter-cups’
Pg. 208: Chapter / TOC consistency: ‘N/A’ to ‘SEYDISFIORD, BY FARÖE TO LEITH’—

Added section heading where indicated in TOC
Pg. 209: Corrected typo: ‘similiar’ to ‘similar’
Pg. 215: Punctuation fix: ‘breakfast on board,’ to ‘breakfast on board.’—Comma at end of

sentence
Pg. 219: Corrected accent: ‘PALSSON’ to ‘PÁLSSON’
Pg. 220: Proper name consistency: ‘Kalfar’ to ‘Kalfur’
Pg. 221: Corrected typo: ‘dont’ to ‘don’t’
Pg. 221: Heading consistency: ‘II.--SÆMUND GETS’ to ‘II. SÆMUND GETS’—Removed

em-dash in section title to match other headers
Pg. 226: Proper name consistency: ‘A. J. S.’ to ‘A.J.S.’—Usually without spaces
Pg. 228: Hyphenation consistency: ‘Iceland moss’ to ‘Iceland-moss’
Pg. 228: Corrected typo: ‘wont’ to ‘won’t’
Pg. 229: Proper name consistency: ‘Skagafiörd’ to ‘Skagafiord’
Pg. 239: Missing punctuation : ‘such a rib as this’ to ‘such a rib as this?’—Added missing ‘?’ at
para end
Pg. 242: Missing punctuation : ‘if she does’ to ‘“if she does’—Added missing opening
quotation mark
Pg. 252: Corrected typo: ‘Fairies’’ to ‘Fairies’

Pg. 255: Corrected typo: ‘parishoners’ to ‘parishioners’
Pg. 259: Quote placement: ‘little porridge pot.’ to ‘little porridge pot.”’—Added missing close-
quote at quote end
Pg. 260: Proper name consistency: ‘Volu’ to ‘Völu’
Pg. 260: Proper name consistency: ‘Vola’ to ‘Vala’—Nominative form corrected, see next
sentence
Pg. 260: Chapter / TOC consistency: ‘N/A’ to ‘FROM THE “VÖLUSPÁ”’—Added section
heading where indicated in TOC
Pg. 261: Corrected typo: ‘Gjallarborn’ to ‘Gjallarhorn’
Pg. 261: Corrected typo: ‘Nighögg’ to ‘Nidhögg’
Pg. 262: Chapter / TOC consistency: ‘N/A’ to ‘FROM THE “SÓLAR LJÓD”’—Added
section heading where indicated in TOC
Pg. 264: Quote placement: ‘this Sun’s Song!’ to ‘this Sun’s Song!”’—Added missing close-
quote at poem end
Pg. 265: Hyphenation consistency: ‘Niebelungen lied’ to ‘Niebelungen-lied’
Pg. 265: Corrected typo: ‘illustrions’ to ‘illustrious’
Pg. 265: Corrected typo: ‘mornfully’ to ‘mournfully’
Pg. 265: Quote placement: ‘Odin’s High Song’ to ‘“Odin’s High Song’—Added missing open-
quote at quote beginning
Pg. 265: Chapter / TOC consistency: ‘N/A’ to ‘FROM THE POEMS RELATING TO
SIGURD & BRYNHILD.’—Added section heading where indicated in TOC
Pg. 267: Missing punctuation : ‘the man speaks his mind’ to ‘the man speaks his mind.’—
Missing period added at stanza end
Pg. 269: Repeated word: ‘and and a straw-rick’ to ‘and a straw-rick’
Pg. 272: Missing punctuation: ‘live without crime’ to ‘live without crime.’—Missing period
added at stanza end
Pg. 274: Hyphenation consistency: ‘fire-wood’ to ‘firewood’
Pg. 274: Missing punctuation: ‘in her breast’ to ‘in her breast.’—Missing period added at
stanza end
Pg. 275: Corrected typo: ‘CXII’ to ‘XCII’
Pg. 277: Quote placement: ‘Gunlöd is weeping.’ to ‘Gunlöd is weeping.”’—Added missing

close-quote at poem end
Pg. 279: Corrected accent: ‘I’shafs’ to ‘Íshafs’
Pg. 279: Corrected accent: ‘O’lmar’ to ‘Ólmar’
Pg. 279: Proper name consistency: ‘Thorlakson’ to ‘Thorláksson’
Pg. 280: Corrected typo: ‘Ogöruggar’ to ‘Og öruggar’
Pg. 280: Corrected accent: ‘I’brjósti’ to ‘Í brjósti’
Pg. 280: Corrected accent: ‘A´’ to ‘Á’
Pg. 280: Corrected typo: ‘Horrfiun’ to ‘Horrfinn’
Pg. 280: Corrected accent: ‘I’vöggu’ to ‘Í vöggu’
Pg. 280: Corrected typo: ‘þaðað’ to ‘það að’
Pg. 280: Corrected accent: ‘I’talska’ to ‘Ítalska’
Pg. 280: Corrected typo: ‘semheyri’ to ‘sem heyri’
Pg. 281: Corrected accent: ‘I’mekkjum’ to ‘Ímekkjum’
Pg. 281: Proper name consistency: ‘Hiatland’ to ‘Hialtland’
Pg. 281: Corrected typo: ‘Ogaldinn’ to ‘Og aldinn’
Pg. 281: Corrected accent: ‘þer’ to ‘þér’
Pg. 287: Corrected accent: ‘þèr’ to ‘þér’
Pg. 287: Corrected accent: ‘Skjött’ to ‘Skjótt’
Pg. 287: Corrected typo: ‘húrsa’ to ‘húsa’
Pg. 287: Corrected typo: ‘bœði’ to ‘bæði’
Pg. 287: Corrected accent: ‘O´’ to ‘Ó’

Pg. 287: Corrected accent: ‘I´’ to ‘Í’
Pg. 287: Corrected accent: ‘Fo´tum’ to ‘Fótum’
Pg. 287: Corrected accent: ‘I´’ to ‘Í’
Pg. 287: Corrected accent: ‘bùið’ to ‘búið’
Pg. 288: Corrected typo: ‘Ogdökkvir’ to ‘Og dökkvir’
Pg. 288: Corrected typo: ‘Mæki’ to ‘Mœki’
Pg. 288: Corrected typo: ‘Irá’ to ‘Frá’
Pg. 288: Corrected accent: ‘O´mur’ to ‘Ómur’
Pg. 288: Corrected accent: ‘A´vita’ to ‘Á vita’
Pg. 288: Corrected accent: ‘O´ðins’ to ‘Óðins’
Pg. 288: Corrected accent: ‘A´skipi’ to ‘Á skipi’
Pg. 288: Corrected accent: ‘I´marar’ to ‘Í marar’
Pg. 288: Corrected accent: ‘I´niðmyrkvu’ to ‘Í niðmyrkvu’
Pg. 288: Corrected accent: ‘I´blindmyrkri’ to ‘Í blindmyrkri’
Pg. 288: Corrected accent: ‘I´ógna’ to ‘Í ógna’
Pg. 288: Corrected accent: ‘O´ðinn’ to ‘Óðinn’
Pg. 288: Corrected typo: ‘myskbláu’ to ‘myrkbláu’
Pg. 292: Corrected accent: ‘sỳsla’ to ‘sysla’
Pg. 292: Corrected accent: ‘sỳssel’ to ‘syssel’
Pg. 292: Punctuation fix: ‘lava,’ to ‘lava.’—Comma for period at entry end
Pg. 292: Corrected accent: ‘fljöt’ to ‘fljót’
Pg. 295: Proper name consistency: ‘Caesar’ to ‘Cæsar’
Pg. 304: Corrected typo: ‘flourshing’ to ‘flourishing’
Pg. 305: Proper name consistency: ‘eddas’ to ‘Eddas’—Capitalised elsewhere
Pg. 305: Proper name consistency: ‘eddas’ to ‘Eddas’—Capitalised elsewhere

Pg. 309: Hyphenation consistency: ‘Blaeberries’ to ‘Blae-berries’
Pg. 306: Proper name consistency: ‘Skalholt’ to ‘Skálholt’
Pg. 307: Spelling consistency: ‘Biarne’ to ‘Biarni’
Pg. 309: Proper name consistency: ‘Almanna Gjá’ to ‘Almannagjá’
Pg. 309: Proper name consistency: ‘Ailsay’ to ‘Ailsa’
Pg. 309: Hyphenation consistency: ‘Icedrift’ to ‘Ice-drift’
Pg. 309: Corrected accent: ‘Hrafnagjà’ to ‘Hrafnagjá’
Pg. 309: Corrected accent: ‘Bruarâ’ to ‘Bruará’
Pg. 309: Proper name consistency: ‘Salvor’ to ‘Salvör’
Pg. 309: Proper name consistency: ‘Breidamerks’ to ‘Breidamerkr’
Pg. 310: Hyphenation consistency: ‘re-building’ to ‘rebuilding’
Pg. 310: Missing punctuation: ‘days 296’ to ‘days, 296’—Added comma before pg. number
Pg. 310: Missing punctuation: ‘26’ to ‘26.’—Added missing period at end of index subentry
Pg. 310: Hyphenation consistency: ‘Einars-drángr’ to ‘Einarsdrángr’
Pg. 311: Corrected pg. reference in index: ‘265’ to ‘266’
Pg. 311: Corrected accent: ‘tûns’ to ‘túns’
Pg. 311: Hyphenation consistency: ‘surefooted’ to ‘sure-footed’
Pg. 311: Proper name consistency: ‘Goldbringé’ to ‘Guldbringu’
Pg. 311: Proper name consistency: ‘Grœnvatn’ to ‘Grœnavatn’
Pg. 312: Hyphenation consistency: ‘Hvità’ to ‘Hvitá’
Pg. 312: Hyphenation consistency: ‘Icedrift’ to ‘Ice-drift’
Pg. 312: Hyphenation consistency: ‘In door occupations’ to ‘indoor occupations’
Pg. 312: Corrected typo: ‘Kleiservatn’ to ‘Kleifervatn’
Pg. 312: Hyphenation consistency: ‘Lighthouse’ to ‘Light-house’

Pg. 312: Proper name consistency: ‘Hrafna Gjá’ to ‘Hrafnagjá’
Pg. 312: Proper name consistency: ‘Logberg’ to ‘Lögberg’
Pg. 312: Proper name consistency: ‘Markarfliot’ to ‘Markarfliót’
Pg. 312: Proper name consistency: ‘Landfogged’ to ‘Landfoged’
Pg. 313: Corrected accent: ‘Oxerâ’ to ‘Oxerá’
Pg. 313: Punctuation fix: ‘Plain, 94.’ to ‘Plain, 94’—Extra punctuation at entry end
Pg. 313: Punctuation fix: ‘Plateau, 74.’ to ‘Plateau, 74’—Extra punctuation at entry end
Pg. 313: Punctuation fix: ‘Pits, 107.’ to ‘Pits, 107’—Extra punctuation at entry end
Pg. 314: Missing punctuation: ‘140’ to ‘140.’—Added missing period at end of index subentry
Pg. 314: Hyphenation consistency: ‘sea pinks’ to ‘sea-pinks’
Pg. 314: Corrected accent: ‘Thiöthölfr’ to ‘Thióthólfr’
Pg. 315: Corrected accent: ‘Tûn’ to ‘Tún’
Pg. 315: Hyphenation consistency: ‘Waterfloods’ to ‘Water-floods’

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Test Bank for Principles of Macroeconomics Sixth Canadian

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Solution Manual https://testbankpack.com/p/solution-manual-for-principles-

ANS: C PTS: 1 DIF: Average REF: p. 21-22

2. Which are terms used by an economist?

ANS: D PTS: 1 DIF: Average REF: p. 22-24

3. What is meant by scientific method?

ANS: REF: p. 22-24

ANS: B PTS: 1 DIF: Average REF: p. 22-24

ANS: B PTS: 1 DIF: Easy REF: p. 22-24

5. What observation did Albert Einstein once make about science?

ANS: A PTS: 1 DIF: Average REF: p. 22-24

Remember NOT: Macro TB_2-6

ANS: REF: p. 22-24

c. They deal with similar phenomena.

ANS: B PTS: 1 DIF: Average REF: p. 22-23

ANS: C PTS: 1 DIF: Average REF: p. 22-24

ANS: B PTS: 1 DIF: Average REF: p. 22-24

10. What happens when economists test theories?

ANS: A PTS: 1 DIF: Average REF: p. 22-24

ANS: REF: p. 22-24

ANS: D PTS: 1 DIF: Average REF: p. 22-24

Remember NOT: Macro TB_2-12

ANS: A PTS: 1 DIF: Average REF: p. 22-24

14. Why do economists make assumptions?

ANS: B PTS: 1 DIF: Average REF: p. 22-24

ANS: REF: p. 22-24

a. knowledge of human behaviour

ANS: C PTS: 1 DIF: Average REF: p. 23

ANS: C PTS: 1 DIF: Average REF: p. 23

17. Why are historical episodes valuable to economists?

ANS: D PTS: 1 DIF: Average REF: p. 23

18. What is a good theory?

19. What is the goal of theories?

ANS: REF: p. 22-24

a. to provide an interesting, but not useful, framework of analysis

ANS: D PTS: 1 DIF: Easy REF: p. 23

ANS: A PTS: 1 DIF: Easy REF: p. 23

21. What can good assumptions do?

ANS: B PTS: 1 DIF: Average REF: p. 23

22. How does a scientist make assumptions?

ANS: D PTS: 1 DIF: Easy REF: p. 22-24

ANS: REF: p. 22-24

23. What makes a model compelling?

ANS: C PTS: 1 DIF: Easy REF: p. 22-24

24. What happens when scientists make good assumptions?

ANS: C PTS: 1 DIF: Average REF: p. 22-24

ANS: A PTS: 1 DIF: Average REF: p. 23-24

ANS: B PTS: 1 DIF: Average REF: p. 23-24

28. What do good economic models do?

ANS: B PTS: 1 DIF: Average REF: p. 24

29. Why do economists use models?

ANS: A PTS: 1 DIF: Easy REF: p. 24

30. Which of the following best describes economic models?

ANS: C PTS: 1 DIF: Average REF: p. 24

31. How do economists begin building an economic model?

ANS: C PTS: 1 DIF: Average REF: p. 24

32. What is a model?

ANS: D PTS: 1 DIF: Easy REF: p. 24

33. Which of the following is NOT a characteristic of economic models?

34. Which of the following is NOT a common characteristic of economic models?

ANS: B PTS: 1 DIF: Average REF: p. 24