Test Bank for The Economy Today Bradley Schiller 15th edition

The Test Bank for The Economy Today by Bradley Schiller explains how to understand economic concepts in our ever-changing world. This edition is meant to assist in the acquisition of basic concepts in micro and macroeconomics in connection with the global economy for students. The great part is that Schiller’s work covers everything from transactions in the market to the circular flows of income with examples that connect theoretical explanations with actual market instances.

Core Topics Covered in This Test Bank

Participants and Transactions in the Market

This test bank assists students in recognizing business firms, consumers, and government as being the main players in market transactions. It views how these 3 broad units combine in factor markets as well as product markets in a more informative manner.

Supply, Demand, and Equilibrium

Students will have access to MS Word reviews that cover the supply and demand mechanics. This covers the issues of how prices are worked out as well as some factors that cause changes in equilibrium. An understanding of how consumer preferences and utility work can give clues to what goes on in the marketing world.

Economic Goals of Consumers and Businesses

The test bank illustrates how consumers work to maximize their entire utility while businesses work to maximize their profits. These goals originate a movement of resources which in turn affects the allocation of resources during the various economic transactions.

The Circular Flow of Economy Model

I certainly agree with Schiller’s text on the property which he says of the circular flow model, the model showing the interdependence on the goods and services from households and the business sector through the factor and product markets. This allows us to appreciate better the movement of money resources and products in the economy.

Government in Economics

This edition also considers government agencies as one of the central players in the economy. Basically, it describes how political authorities regulate markets and for what purposes…Usually, the aim is to control the economic system and provide public goods for welfare purposes.

Benefits Of Utilizing This Test Bank

There are many advantages to using this test bank. The first one is the benefit to students which is helping them develop skills of reflective thinking and analytical thinking. There are numerous topics that such tools cover and they are all logically interrelated, aiding in the conceptualization of ideas on real-life applications. Key benefits include:

• Direct hands-on practice on basic concepts such as market structures and monetary policy.
• Complementing classroom activities by simplifying ideas through questions and answers.
• Revise the key economic concepts before the examination.

Conclusion

The Test Bank for The Economy Today, 15th Edition by Bradley Schiller is an invaluable tool for students who are focused on understanding basic economic concepts and how those concepts apply to the world economy. The well-structured questions and practical examples make it easier to learn and retain knowledge on critical topics, from market participation to government policies. This test bank is great for facilitating learning that has taken place in a classroom, preparing for exams, and finally performing well in economics studies.

Test Bank for The Economy Today Bradley Schiller 15th edition

The Economy Today, 15e (Schiller) Chapter 3   Supply and Demand 

1) Who participates in markets?

A) Business firms.

B) Business firms and consumers.

C) Consumers and government agencies.

D) All of the choices are correct.

Answer:  D

Explanation:  Consumers, business firms, government agencies, and foreigners participate in the marketplace.

Difficulty: 2 Medium

Topic:  Market Participants

Learning Objective:  03-03 How market prices and quantities are established.

Bloom’s:  Understand

AACSB:  Reflective Thinking

Accessibility:  Keyboard Navigation

2) The goal of the consumer in a market economy is to use his or her limited income to buy

A) The greatest number of goods and services possible.

B) The goods and services that maximize profits for businesses.

C) Those goods and services with the lowest prices.

D) The set of goods and services that maximizes the consumer’s total utility.

Answer:  D

Explanation:  Consumers are motivated by their desire to maximize utility.

Difficulty: 2 Medium

Topic:  Market Participants

Learning Objective:  03-03 How market prices and quantities are established.

Bloom’s:  Understand

AACSB:  Reflective Thinking

Accessibility:  Keyboard Navigation

3) The goal of the business firms in a market economy is to maximize

A) Total profits.

B) Total sales.

C) Total utility.

D) Total welfare.

Answer:  A

Explanation:  Businesses are motivated by profit.

Difficulty: 2 Medium

Topic:  Market Participants

Learning Objective:  03-03 How market prices and quantities are established.

Bloom’s:  Understand

AACSB:  Reflective Thinking

Accessibility:  Keyboard Navigation

4) People benefit by participating in the market because

A) Resources are no longer limited.

B) There are always participants in the market that are more efficient than you are in production.

C) Market participation allows individuals to specialize and, with trade, ultimately consume more.

D) Participants in the market do not have to make choices.

Answer:  C

Explanation:  Consumers’ limited time, energy, resources, and ability to produce all things lead us to specialize and exchange goods with others who can produce a good at a lower opportunity cost. This ultimately increases how much we can consume.

Difficulty: 2 Medium

Topic:  Market Participants

Learning Objective:  03-03 How market prices and quantities are established.

Bloom’s:  Understand

AACSB:  Reflective Thinking

Accessibility:  Keyboard Navigation

5) Which of the following is a market transaction?

A) A stock increases in value over the 30 years that it is owned.

B) A college student purchases a laptop computer.

C) Weather destroys a farmer’s crops, leaving the farmer unable to buy groceries.

D) A radio station changes its programming from classical to rock.

Answer:  B

Explanation:  A market transaction involves an exchange of either barter or currency for goods or resources.

Difficulty: 3 Hard

Topic:  The Circular Flow

Learning Objective:  03-03 How market prices and quantities are established.

Bloom’s:  Analyze

AACSB:  Analytical Thinking

Accessibility:  Keyboard Navigation

6) A factor market is any place or process where

A) Finished goods are bought and sold.

B) Land, labor, or capital is bought and sold.

C) Finished services are bought and sold.

D) None of the choices are correct.

Answer:  B

Explanation:  A factor market is where the factors of production (land, labor, or capital) are bought and sold.

Difficulty: 1 Easy

Topic:  The Circular Flow

Learning Objective:  03-03 How market prices and quantities are established.

Bloom’s:  Remember

AACSB:  Reflective Thinking

Accessibility:  Keyboard Navigation

7) Which of the following is purchased in a product market?

A) Cell phone service.

B) Undeveloped farmland in Texas.

C) Crude oil.

D) The skills of an X-ray technician.

Answer:  A

Explanation:  A product market is where finished goods and services are bought and sold. Cell phone service is a finished product.

Difficulty: 3 Hard

Topic:  The Circular Flow

Learning Objective:  03-03 How market prices and quantities are established.

Bloom’s:  Apply

AACSB:  Analytical Thinking

Accessibility:  Keyboard Navigation

8) Which of the following is purchased in a factor market?

A) A bag of jellybeans.

B) National defense.

C) The labor of a state university professor.

D) A motorized scooter used for commuting by a student.

Answer:  C

Explanation:  A factor market is where the factors of production, in this case labor, are bought and sold.

Difficulty: 3 Hard

Topic:  The Circular Flow

Learning Objective:  03-03 How market prices and quantities are established.

Bloom’s:  Apply

AACSB:  Analytical Thinking

Accessibility:  Keyboard Navigation

9) Business firms supply goods and services to ________ and purchase factors of production in ________.

A) factor markets; product markets

B) national markets; factor markets

C) product markets; factor markets

D) factor markets; national markets

Answer:  C

Explanation:  A factor market is where the factors of production (land, labor, or capital) are bought and sold. A product market is where finished goods and services are bought and sold. A pair of shoes is a finished good.

Difficulty: 2 Medium

Topic:  The Circular Flow

Learning Objective:  03-03 How market prices and quantities are established.

Bloom’s:  Understand

AACSB:  Reflective Thinking

Accessibility:  Keyboard Navigation

10) Individual consumers supply ________ and purchase ________.

A) factors of production; final goods and services

B) intermediate goods; final goods and services

C) final goods and services; factors of production

D) national goods and services; factors of production

Answer:  A

Explanation:  Individual consumers supply factors of production such as their labor and purchase final goods and services such as groceries.

Difficulty: 2 Medium

Topic:  The Circular Flow

Learning Objective:  03-03 How market prices and quantities are established.

Bloom’s:  Understand

AACSB:  Reflective Thinking

Accessibility:  Keyboard Navigation