Principles and Applications of Macroeconomics International Edition 6th Edition by Marc Lieberman - Test Bank

Principles and Applications of Macroeconomics International Edition 6th Edition by Marc Lieberman – Test Bank

 

Instant Download – Complete Test Bank With Answers

 

 

Sample Questions Are Posted Below

 

CHAPTER 5—WHAT MACROECONOMICS TRIES TO EXPLAIN

 

MULTIPLE CHOICE

 

1. Inflation and unemployment are examples of macroeconomic topics.

a.	True
b.	False

 

 

ANS:  A                    PTS:   1                    DIF:    Difficulty: Easy

NAT:  BUSPROG: Analytic

STA:   DISC: The Study of economics, and definitions in economics

TOP:   Macroeconomic Goals                     KEY:  Bloom’s: Knowledge

 

2. The equilibrium price of automobiles is a primarily macroeconomic issue.

a.	True
b.	False

 

 

ANS:  B                    PTS:   1                    DIF:    Difficulty: Easy

NAT:  BUSPROG: Analytic

STA:   DISC: The Study of economics, and definitions in economics

TOP:   Macroeconomic Goals                     KEY:  Bloom’s: Knowledge

 

3. Increases in the general price level are primarily a macroeconomic issue.

a.	True
b.	False

 

 

ANS:  A                    PTS:   1                    DIF:    Difficulty: Easy

NAT:  BUSPROG: Analytic

STA:   DISC: The Study of economics, and definitions in economics

TOP:   Macroeconomic Goals                     KEY:  Bloom’s: Knowledge

 

4. Macroeconomics studies the behavior of individual decision makers while microeconomics studies the overall economy.

a.	True
b.	False

 

 

ANS:  B                    PTS:   1                    DIF:    Difficulty: Easy

NAT:  BUSPROG: Analytic

STA:   DISC: The Study of economics, and definitions in economics

TOP:   Macroeconomic Goals                     KEY:  Bloom’s: Knowledge

 

5. Macroeconomics studies the behavior of aggregates while microeconomics studies the behavior of individual decision-making units.

a.	True
b.	False

 

 

ANS:  A                    PTS:   1                    DIF:    Difficulty: Easy

NAT:  BUSPROG: Analytic

STA:   DISC: The Study of economics, and definitions in economics

TOP:   Macroeconomic Goals                     KEY:  Bloom’s: Knowledge

 

6. What are the three important macroeconomic goals about which most economists, and society at large, agree?

a.	economic growth, full employment, and low interest rates
b.	economic growth, full employment, and stable prices
c.	economic growth, zero unemployment, and falling prices
d.	economic growth, low unemployment, and a balanced budget
e.	economic growth, a balanced budget, and balanced international trade

 

 

ANS:  B                    PTS:   1                    DIF:    Difficulty: Easy

NAT:  BUSPROG: Analytic

STA:   DISC: The Study of economics, and definitions in economics

TOP:   Macroeconomic Goals                     KEY:  Bloom’s: Knowledge

 

7. Macroeconomics is best suited to answering questions such as

a.	what determines the unemployment rate among students on this campus
b.	why rent is higher in big cities than in smaller ones
c.	how fast the overall price level will rise next year
d.	what determines the demand for public transportation in rural areas
e.	why sales taxes in this area are increasing

 

 

ANS:  C                    PTS:   1                    DIF:    Difficulty: Easy

NAT:  BUSPROG: Analytic

STA:   DISC: The Study of economics, and definitions in economics

TOP:   Macroeconomic Goals                     KEY:  Bloom’s: Knowledge

 

8. An understanding of macroeconomics is valuable because it can help

a.	in making purchase decisions
b.	us to understand the forces that determine how fast the economy grows
c.	us to understand why some firms earn more economic profit than others
d.	to minimize the amount of tax an individual owes
e.	minimize the opportunity cost of making poor decisions

 

 

ANS:  B                    PTS:   1                    DIF:    Difficulty: Moderate

NAT:  BUSPROG: Analytic

STA:   DISC: The Study of economics, and definitions in economics

TOP:   Macroeconomic Goals                     KEY:  Bloom’s: Knowledge

 

9. Which of the following is a major macroeconomic goal?

a.	Low prices
b.	Declining prices
c.	Pure competition
d.	Stable prices
e.	High prices

 

 

ANS:  D                    PTS:   1                    DIF:    Difficulty: Easy

NAT:  BUSPROG: Analytic

STA:   DISC: The Study of economics, and definitions in economics

TOP:   Macroeconomic Goals                     KEY:  Bloom’s: Knowledge

 

10. Which of the following is a major macroeconomic goal?

a.	Low prices
b.	Fair prices
c.	Pure competition
d.	Low unemployment
e.	High prices

 

 

ANS:  D                    PTS:   1                    DIF:    Difficulty: Easy

NAT:  BUSPROG: Analytic

STA:   DISC: The Study of economics, and definitions in economics

TOP:   Macroeconomic Goals                     KEY:  Bloom’s: Knowledge

 

11. From 1929 to 1933, U.S. output dropped by about

a.	10 percent
b.	20 percent
c.	25 percent
d.	50 percent
e.	75 percent

 

 

ANS:  C                    PTS:   1                    DIF:    Difficulty: Moderate

NAT:  BUSPROG: Analytic

STA:   DISC: The Study of economics, and definitions in economics

TOP:   Macroeconomic Goals                     KEY:  Bloom’s: Knowledge

 

12. For the average living standard of a nation to rise, the only thing that needs to happen is for nominal GDP to increase faster than the price level.

a.	True
b.	False

 

 

ANS:  B                    PTS:   1                    DIF:    Difficulty: Easy

NAT:  BUSPROG: Analytic

STA:   DISC: The Study of economics, and definitions in economics

TOP:   Macroeconomic Goals                     KEY:  Bloom’s: Comprehension

 

13. If the rate of economic growth is positive, then everyone becomes better off.

a.	True
b.	False

 

 

ANS:  B                    PTS:   1                    DIF:    Difficulty: Easy

NAT:  BUSPROG: Analytic

STA:   DISC: The Study of economics, and definitions in economics

TOP:   Macroeconomic Goals                     KEY:  Bloom’s: Comprehension

 

14. Rapid economic growth has increased the economic well-being of U.S. citizens because

a.	people are now earning higher incomes while goods and services are cheaper
b.	the dollar is worth now more than in the past
c.	the output of goods and services has risen faster than the population
d.	the population is now living and working longer
e.	the population has increased while production has decreased

 

 

ANS:  C                    PTS:   1                    DIF:    Difficulty: Moderate

NAT:  BUSPROG: Analytic

STA:   DISC: The Study of economics, and definitions in economics

TOP:   Macroeconomic Goals                     KEY:  Bloom’s: Comprehension

 

15. Economists monitor economic growth by keeping track of

a.	the stock market
b.	population growth
c.	the total quantity of goods and services produced in the United States each year
d.	the inflation rate
e.	the distribution of income among U.S. states

 

 

ANS:  C                    PTS:   1                    DIF:    Difficulty: Moderate

NAT:  BUSPROG: Analytic

STA:   DISC: The Study of economics, and definitions in economics

TOP:   Macroeconomic Goals                     KEY:  Bloom’s: Knowledge

 

16. In only one of the following situations is a nation’s standard of living certain to increase. Which one?

a.	Real GDP rises faster than population.
b.	Real GDP rises faster than the price level.
c.	Real GDP rises.
d.	Real GDP rises faster than the number of people employed.
e.	Real GDP rises faster than the number of people unemployed.

 

 

ANS:  A                    PTS:   1                    DIF:    Difficulty: Moderate

NAT:  BUSPROG: Analytic

STA:   DISC: The Study of economics, and definitions in economics

TOP:   Macroeconomic Goals                     KEY:  Bloom’s: Comprehension

 

17. Output per person rises when

a.	the population increases faster than real GDP
b.	real GDP rises faster than the number of employed workers
c.	real GDP increases at the same rate as the population
d.	real GDP rises slower than the population
e.	real GDP rises faster than the population

 

 

ANS:  E                    PTS:   1                    DIF:    Difficulty: Moderate

NAT:  BUSPROG: Analytic

STA:   DISC: The Study of economics, and definitions in economics

TOP:   Macroeconomic Goals                     KEY:  Bloom’s: Comprehension

 

18. Over the past 80 years, real GDP has

a.	decreased in more years than it has increased
b.	increased dramatically
c.	increased slowly
d.	increased moderately
e.	been stable

 

 

ANS:  B                    PTS:   1                    DIF:    Difficulty: Easy

NAT:  BUSPROG: Analytic

STA:   DISC: The Study of economics, and definitions in economics

TOP:   Macroeconomic Goals                     KEY:  Bloom’s: Knowledge

 

19. Which of the following indicates that the average standard of living is rising?

a.	Real GDP decreases faster than the price level.
b.	Real GDP increases faster than the price level.
c.	The population increases.
d.	Real GDP increases faster than the population.
e.	Population increases faster than real GDP.

 

 

ANS:  D                    PTS:   1                    DIF:    Difficulty: Moderate

NAT:  BUSPROG: Analytic

STA:   DISC: The Study of economics, and definitions in economics

TOP:   Macroeconomic Goals                     KEY:  Bloom’s: Comprehension

 

20. Since the late 1970s, economic growth has

a.	occurred at a rapid pace compared to the period 1950-1973
b.	improved living standards across the entire population
c.	maintained approximately constant living standards across the entire population
d.	improved the living standards of less-skilled workers while highly skilled workers have become worse off
e.	improved the living standards of highly skilled workers while less-skilled workers have become worse off

 

 

ANS:  E                    PTS:   1                    DIF:    Difficulty: Moderate

NAT:  BUSPROG: Analytic

STA:   DISC: The Study of economics, and definitions in economics

TOP:   Macroeconomic Goals                     KEY:  Bloom’s: Knowledge

 

21. The U.S. economy experienced fluctuations in employment and output over the last half of the twentieth century. However, the length of the average recession has been about the same as the length of the average expansion.

a.	True
b.	False

 

 

ANS:  B                    PTS:   1                    DIF:    Difficulty: Easy

NAT:  BUSPROG: Analytic

STA:   DISC: The Study of economics, and definitions in economics

TOP:   Macroeconomic Goals                     KEY:  Bloom’s: Knowledge

 

22. The Full Employment and Balanced Growth Act of 1978 set the target unemployment rate for the United States economy at 4 percent.

a.	True
b.	False

 

 

ANS:  A                    PTS:   1                    DIF:    Difficulty: Easy

NAT:  BUSPROG: Analytic

STA:   DISC: The Study of economics, and definitions in economics

TOP:   Macroeconomic Goals                     KEY:  Bloom’s: Knowledge

 

23. The United States economy has achieved the target rate of unemployment, as set by the Full Employment and Balanced Growth Act (1978), for most years over the last few decades.

a.	True
b.	False

 

 

ANS:  B                    PTS:   1                    DIF:    Difficulty: Easy

NAT:  BUSPROG: Analytic

STA:   DISC: The Study of economics, and definitions in economics

TOP:   Macroeconomic Goals                     KEY:  Bloom’s: Knowledge

 

24. The unemployment rate is usually zero except during recessions.

a.	True
b.	False

 

 

ANS:  B                    PTS:   1                    DIF:    Difficulty: Easy

NAT:  BUSPROG: Analytic

STA:   DISC: The Study of economics, and definitions in economics

TOP:   Macroeconomic Goals                     KEY:  Bloom’s: Knowledge

 

25. One macroeconomic goal is to achieve an unemployment rate of zero.

a.	True
b.	False

 

 

ANS:  B                    PTS:   1                    DIF:    Difficulty: Easy

NAT:  BUSPROG: Analytic

STA:   DISC: The Study of economics, and definitions in economics

TOP:   Macroeconomic Goals                     KEY:  Bloom’s: Knowledge

 

26. The Employment Act of 1946 directed the federal government to pursue the three objectives of maximizing employment, production, and purchasing power.

a.	True
b.	False

 

 

ANS:  A                    PTS:   1                    DIF:    Difficulty: Easy

NAT:  BUSPROG: Analytic

STA:   DISC: The Study of economics, and definitions in economics

TOP:   Macroeconomic Goals                     KEY:  Bloom’s: Knowledge

 

27. During a recession, both output and unemployment fall.

a.	True
b.	False

 

 

ANS:  B                    PTS:   1                    DIF:    Difficulty: Easy

NAT:  BUSPROG: Analytic

STA:   DISC: The Study of economics, and definitions in economics

TOP:   Macroeconomic Goals                     KEY:  Bloom’s: Knowledge

 

28. Periodic fluctuations in GDP are called business cycles.

a.	True
b.	False

 

 

ANS:  A                    PTS:   1                    DIF:    Difficulty: Easy

NAT:  BUSPROG: Analytic

STA:   DISC: The Study of economics, and definitions in economics

TOP:   Macroeconomic Goals                     KEY:  Bloom’s: Knowledge

 

29. Most recessions last approximately three years.

a.	True
b.	False

 

 

ANS:  B                    PTS:   1                    DIF:    Difficulty: Easy

NAT:  BUSPROG: Analytic

STA:   DISC: The Study of economics, and definitions in economics

TOP:   Macroeconomic Goals                     KEY:  Bloom’s: Knowledge

 

 

30. How many times in the last 80 years has the official unemployment rate in the United States reached 0 percent?

a.	0
b.	1
c.	2
d.	3
e.	4

 

 

ANS:  A                    PTS:   1                    DIF:    Difficulty: Easy

NAT:  BUSPROG: Analytic

STA:   DISC: The Study of economics, and definitions in economics

TOP:   Macroeconomic Goals                     KEY:  Bloom’s: Knowledge

 

31. During the Great Depression of the 1930s, the unemployment rate in the United States peaked at around

a.	5 percent
b.	10 percent
c.	12 percent
d.	25 percent
e.	50 percent

 

 

ANS:  D                    PTS:   1                    DIF:    Difficulty: Moderate

NAT:  BUSPROG: Analytic

STA:   DISC: The Study of economics, and definitions in economics

TOP:   Macroeconomic Goals                     KEY:  Bloom’s: Knowledge

 

32. If real GDP is increasing at a 2 percent annual rate while the unemployment rate is 7 percent, the economy is

a.	not achieving full economic potential
b.	experiencing an increase of 2 percent in real annual per capita GDP
c.	experiencing a slump
d.	experiencing high prices and low inflation
e.	producing along its production possibilities frontier

 

 

ANS:  A                    PTS:   1                    DIF:    Difficulty: Moderate

NAT:  BUSPROG: Analytic

STA:   DISC: The Study of economics, and definitions in economics

TOP:   Macroeconomic Goals                     KEY:  Bloom’s: Comprehension

 

33. If the unemployment rate has reached an all-time low, the production of output is probably

a.	high
b.	low
c.	fluctuating
d.	stable
e.	inefficient

 

 

ANS:  A                    PTS:   1                    DIF:    Difficulty: Easy

NAT:  BUSPROG: Analytic

STA:   DISC: The Study of economics, and definitions in economics

TOP:   Macroeconomic Goals                     KEY:  Bloom’s: Comprehension

 

 

34. Because it lowers the amount of output per person, unemployment results in

a.	a shift in the economy’s production possibilities frontier
b.	increased workers’ incomes
c.	optimism about economic growth
d.	a lower standard of living
e.	rapid inflation

 

 

ANS:  D                    PTS:   1                    DIF:    Difficulty: Moderate

NAT:  BUSPROG: Analytic

STA:   DISC: The Study of economics, and definitions in economics

TOP:   Macroeconomic Goals                     KEY:  Bloom’s: Comprehension

 

35. If the unemployment rate is 6 percent, that means that 6 percent of

a.	the population is not working
b.	potential workers do not have jobs
c.	the workforce is searching for work but has not found a job at that time
d.	the individuals who are looking for work cannot find jobs
e.	the population is not looking for a job

 

 

ANS:  C                    PTS:   1                    DIF:    Difficulty: Moderate

NAT:  BUSPROG: Analytic

STA:   DISC: The Study of economics, and definitions in economics

TOP:   Macroeconomic Goals                     KEY:  Bloom’s: Knowledge

 

36. In the Full Employment and Balanced Growth Act of 1978, Congress set a target rate of unemployment. The nation achieves this target rate

a.	in most years
b.	at least once a year
c.	only rarely
d.	in election years
e.	at least once every five years

 

 

ANS:  C                    PTS:   1                    DIF:    Difficulty: Moderate

NAT:  BUSPROG: Analytic

STA:   DISC: The Study of economics, and definitions in economics

TOP:   Macroeconomic Goals                     KEY:  Bloom’s: Knowledge

 

37. If a factory hires 1,000 new workers, the nation’s output level is probably

a.	increasing and unemployment is likely to increase
b.	increasing and unemployment is likely to decrease by 1000 individuals
c.	fluctuating
d.	stable
e.	increasing and unemployment is likely to decrease by less than 1,000 individuals

 

 

ANS:  E                    PTS:   1                    DIF:    Difficulty: Moderate

NAT:  BUSPROG: Analytic

STA:   DISC: The Study of economics, and definitions in economics

TOP:   Macroeconomic Goals                     KEY:  Bloom’s: Comprehension

 

38. The phase of the business cycle characterized by rising output is called a(n)

a.	peak
b.	recession
c.	depression
d.	trough
e.	expansion

 

 

ANS:  E                    PTS:   1                    DIF:    Difficulty: Easy

NAT:  BUSPROG: Analytic

STA:   DISC: The Study of economics, and definitions in economics

TOP:   Macroeconomic Goals                     KEY:  Bloom’s: Knowledge

 

39. Recessions are identified by

a.	severe and long-lasting phases of decreased output
b.	high employment
c.	constant output
d.	decreasing output
e.	low unemployment

 

 

ANS:  D                    PTS:   1                    DIF:    Difficulty: Easy

NAT:  BUSPROG: Analytic

STA:   DISC: The Study of economics, and definitions in economics

TOP:   Macroeconomic Goals                     KEY:  Bloom’s: Knowledge

 

40. Periodic fluctuations in real GDP are called

a.	business cycles
b.	recessions
c.	peaks
d.	expansions
e.	troughs

 

 

ANS:  A                    PTS:   1                    DIF:    Difficulty: Moderate

NAT:  BUSPROG: Analytic

STA:   DISC: The Study of economics, and definitions in economics

TOP:   Macroeconomic Goals                     KEY:  Bloom’s: Knowledge

 

 

41. Refer to Figure 5-1 above. If the economy moves from point A to B on the graph, it is going through a(n)

a.	peak
b.	trough
c.	expansion
d.	boom
e.	recession

 

 

ANS:  E                    PTS:   1                    DIF:    Difficulty: Easy

NAT:  BUSPROG: Analytic

STA:   DISC: The Study of economics, and definitions in economics

TOP:   Macroeconomic Goals                     KEY:  Bloom’s: Knowledge

 

42. Refer to Figure 5-1 above. If the economy moves from point B to C on the graph, it is going through a(n)

a.	peak
b.	trough
c.	expansion
d.	slump
e.	recession

 

 

ANS:  C                    PTS:   1                    DIF:    Difficulty: Easy

NAT:  BUSPROG: Analytic

STA:   DISC: The Study of economics, and definitions in economics

TOP:   Macroeconomic Goals                     KEY:  Bloom’s: Knowledge

 

43. Refer to Figure 5-1 above. If the economy reaches point B on the graph, it is going through a(n)

a.	peak
b.	trough
c.	expansion
d.	boom
e.	recession

 

 

ANS:  B                    PTS:   1                    DIF:    Difficulty: Easy

NAT:  BUSPROG: Analytic

STA:   DISC: The Study of economics, and definitions in economics

TOP:   Macroeconomic Goals                     KEY:  Bloom’s: Knowledge

 

44. Refer to Figure 5-1 above. If the economy goes from point A to point C on the graph, it is going through a(n)

a.	peak
b.	trough
c.	expansion
d.	business cycle
e.	recession

 

 

ANS:  D                    PTS:   1                    DIF:    Difficulty: Easy

NAT:  BUSPROG: Analytic

STA:   DISC: The Study of economics, and definitions in economics

TOP:   Macroeconomic Goals                     KEY:  Bloom’s: Knowledge

 

45. Which of the following is a period of decreasing output that is severe and long lasting?

a.	business cycle
b.	expansion
c.	peak
d.	recession
e.	depression

 

 

ANS:  E                    PTS:   1                    DIF:    Difficulty: Moderate

NAT:  BUSPROG: Analytic

STA:   DISC: The Study of economics, and definitions in economics

TOP:   Macroeconomic Goals                     KEY:  Bloom’s: Knowledge

 

46. During the expansion phase of a business cycle

a.	employment and output are both at a peak
b.	employment and output are both rising
c.	employment is falling and output is rising
d.	unemployment is rising and output is falling
e.	employment is rising and output is falling

 

 

ANS:  B                    PTS:   1                    DIF:    Difficulty: Moderate

NAT:  BUSPROG: Analytic

STA:   DISC: The Study of economics, and definitions in economics

TOP:   Macroeconomic Goals                     KEY:  Bloom’s: Knowledge

 

47. Since 1959, the U.S. has experienced severe recessions in which three periods?

a.	1964-65, 1981-82, and 1990-91
b.	1974-75, 1981-82, and 2008-09
c.	1960-61, 1974-75, and 2008-09
d.	1960-61, 1981-82, and 2008-09
e.	1969-70, 1981-82, and 2008-09

 

 

ANS:  B                    PTS:   1                    DIF:    Difficulty: Moderate

NAT:  BUSPROG: Analytic

STA:   DISC: The Study of economics, and definitions in economics

TOP:   Macroeconomic Goals                     KEY:  Bloom’s: Knowledge

 

48. A measure that economists use in order to keep track of employment is

a.	the price level
b.	real GDP per person
c.	real GDP
d.	the growth rate of output
e.	the unemployment rate

 

 

ANS:  E                    PTS:   1                    DIF:    Difficulty: Easy

NAT:  BUSPROG: Analytic

STA:   DISC: The Study of economics, and definitions in economics

TOP:   Macroeconomic Goals                     KEY:  Bloom’s: Knowledge

 

49. Inflation has never been a major problem in the U.S.

a.	True
b.	False

 

 

ANS:  B                    PTS:   1                    DIF:    Difficulty: Easy

NAT:  BUSPROG: Analytic

STA:   DISC: The Study of economics, and definitions in economics

TOP:   Macroeconomic Goals                     KEY:  Bloom’s: Knowledge

 

 

50. The inflation rate

a.	explains how prices are reacting to economic policies
b.	indicates the level of prices charged by all firms in the economy
c.	measures the annual percent increase in the average level of prices
d.	measures how fast wages and incomes are rising
e.	determines the prices that firms will offer to customers

 

 

ANS:  C                    PTS:   1                    DIF:    Difficulty: Easy

NAT:  BUSPROG: Analytic

STA:   DISC: The Study of economics, and definitions in economics

TOP:   Macroeconomic Goals                     KEY:  Bloom’s: Knowledge

 

51. Over the past 90 years or so, the inflation rate has

a.	generally increased
b.	been positive in most years
c.	stayed low
d.	been negative in most years
e.	dramatically increased

 

 

ANS:  B                    PTS:   1                    DIF:    Difficulty: Moderate

NAT:  BUSPROG: Analytic

STA:   DISC: The Study of economics, and definitions in economics

TOP:   Macroeconomic Goals                     KEY:  Bloom’s: Knowledge

 

52. Why is inflation considered a problem?

a.	Firms gain too much economic power.
b.	It is always very high when it exists.
c.	People prefer falling prices.
d.	It is costly for society.
e.	Government gains too much economic power..

 

 

ANS:  D                    PTS:   1                    DIF:    Difficulty: Easy

NAT:  BUSPROG: Analytic

STA:   DISC: The Study of economics, and definitions in economics

TOP:   Macroeconomic Goals                     KEY:  Bloom’s: Knowledge

 

53. During the 1990s and the first decade of the 2000s

a.	polls have shown that U.S. citizens are more concerned about inflation than any other national problem
b.	the U.S. inflation rate reached double digits (10 percent or higher)
c.	the U.S. economy consistently experienced deflation (a falling price level)
d.	the U.S. inflation rate averaged about 8 percent per year
e.	the U.S. inflation rate averaged less than 3 percent per year

 

 

ANS:  E                    PTS:   1                    DIF:    Difficulty: Moderate

NAT:  BUSPROG: Analytic

STA:   DISC: The Study of economics, and definitions in economics

TOP:   Macroeconomic Goals                     KEY:  Bloom’s: Knowledge

 

 

54. We could try to use a powerful computer to construct a macroeconomic model including tens of thousands of demand and supply curves, for every market in the economy. This would not be a useful undertaking because

a.	it would not be worth the increased level of complication and effort needed to collect all information
b.	the model would be simplistic
c.	the model would inevitably leave out important information
d.	the suggested prices would inevitably be wrong in each market
e.	the model would not be realistic

 

 

ANS:  A                    PTS:   1                    DIF:    Difficulty: Moderate

NAT:  BUSPROG: Analytic

STA:   DISC: The Study of economics, and definitions in economics

TOP:   The Macroeconomic Approach        KEY:  Bloom’s: Knowledge

 

55. In macroeconomics,

a.	we study one market at a time
b.	we try to understand how the entire economy behaves
c.	we focus on large, important products and ignore the rest
d.	we study one nation’s economy only
e.	we aggregate all national economies into a world economy

 

 

ANS:  B                    PTS:   1                    DIF:    Difficulty: Easy

NAT:  BUSPROG: Analytic

STA:   DISC: The Study of economics, and definitions in economics

TOP:   The Macroeconomic Approach        KEY:  Bloom’s: Knowledge

 

56. When we study macroeconomics,

a.	we model tens of thousands of individual supply and demand curves
b.	we determine thousands of prices and quantities
c.	we employ aggregation to reduce the number of markets we need to understand
d.	we add up all the demand and supply curves that are obtained in microeconomics
e.	we add up the prices of all goods and services produced in the economy

 

 

ANS:  C                    PTS:   1                    DIF:    Difficulty: Moderate

NAT:  BUSPROG: Analytic

STA:   DISC: The Study of economics, and definitions in economics

TOP:   The Macroeconomic Approach        KEY:  Bloom’s: Knowledge

 

57. Aggregation is the process of combining different things into a single category.

a.	True
b.	False

 

 

ANS:  A                    PTS:   1                    DIF:    Difficulty: Easy

NAT:  BUSPROG: Analytic

STA:   DISC: The Study of economics, and definitions in economics

TOP:   The Macroeconomic Approach        KEY:  Bloom’s: Knowledge

 

58. Aggregation is important because it allows macroeconomists to divide a whole into its individual components.

a.	True
b.	False

 

 

ANS:  B                    PTS:   1                    DIF:    Difficulty: Easy

NAT:  BUSPROG: Analytic

STA:   DISC: The Study of economics, and definitions in economics

TOP:   The Macroeconomic Approach        KEY:  Bloom’s: Knowledge

 

59. Microeconomics involves the analysis of smaller, less developed economies while macroeconomics is concerned with the analysis of larger developed economies.

a.	True
b.	False

 

 

ANS:  B                    PTS:   1                    DIF:    Difficulty: Easy

NAT:  BUSPROG: Analytic

STA:   DISC: The Study of economics, and definitions in economics

TOP:   The Macroeconomic Approach        KEY:  Bloom’s: Knowledge

 

60. Aggregation is important in macroeconomics because

a.	it is a basic tool of reasoning
b.	we need a model with as much information as possible
c.	it allows us to comprehend the entire economy in all its detail
d.	it allows us to keep different markets separate in our minds
e.	we need to consider the entire economy at once with a model as simple as possible

 

 

ANS:  E                    PTS:   1                    DIF:    Difficulty: Moderate

NAT:  BUSPROG: Analytic

STA:   DISC: The Study of economics, and definitions in economics

TOP:   The Macroeconomic Approach        KEY:  Bloom’s: Knowledge

 

61. “Output fell 2 percent last quarter” is an example of a positive economic statement.

a.	True
b.	False

 

 

ANS:  A                    PTS:   1                    DIF:    Difficulty: Easy

NAT:  BUSPROG: Analytic

STA:   DISC: The Study of economics, and definitions in economics

TOP:   Macroeconomic Controversies         KEY:  Bloom’s: Comprehension

 

62. If two economists disagree on an issue and their disagreement is based on personal value judgments, then this controversy is a normative one.

a.	True
b.	False

 

 

ANS:  A                    PTS:   1                    DIF:    Difficulty: Easy

NAT:  BUSPROG: Analytic

STA:   DISC: The Study of economics, and definitions in economics

TOP:   Macroeconomic Controversies         KEY:  Bloom’s: Comprehension

 

63. Classical economists believed that

a.	the government should play an active role in controlling the economy
b.	the government can best help the economy by leaving it alone
c.	the economy is controlled by the government
d.	laissez faire will hurt the economy
e.	economists should offer guidance to governmental leaders

 

 

ANS:  B                    PTS:   1                    DIF:    Difficulty: Easy

NAT:  BUSPROG: Analytic

STA:   DISC: The Study of economics, and definitions in economics

TOP:   Macroeconomic Controversies         KEY:  Bloom’s: Knowledge

 

64. John Maynard Keynes, author of The General Theory of Employment, Interest, and Money, argued that

a.	classical economic theory was correct
b.	the government should follow a policy of laissez faire
c.	the critiques of classical economics were flawed
d.	the economy does not always perform well in the absence of government guidance
e.	instead of focusing on money, the government should control interest rates

 

 

ANS:  D                    PTS:   1                    DIF:    Difficulty: Moderate

NAT:  BUSPROG: Analytic

STA:   DISC: The Study of economics, and definitions in economics

TOP:   Macroeconomic Controversies         KEY:  Bloom’s: Knowledge

 

65. The occurrence of the Great Depression offered evidence that supported

a.	the classical theory of economics
b.	the need for the government to practice the policy of laissez faire
c.	the need for the government to control prices
d.	Congress to take action to stop rising prices
e.	the Keynesian idea that the government needed to guide the economy

 

 

ANS:  E                    PTS:   1                    DIF:    Difficulty: Moderate

NAT:  BUSPROG: Analytic

STA:   DISC: The Study of economics, and definitions in economics

TOP:   Macroeconomic Controversies         KEY:  Bloom’s: Comprehension

 

66. Who was the economist that began modern macroeconomics?

a.	Adam Smith
b.	Paul Samuelson
c.	Milton Friedman
d.	John Maynard Keynes
e.	Ben Bernanke

 

 

ANS:  D                    PTS:   1                    DIF:    Difficulty: Moderate

NAT:  BUSPROG: Analytic

STA:   DISC: The Study of economics, and definitions in economics

TOP:   Macroeconomic Controversies         KEY:  Bloom’s: Knowledge

 

67. A laissez faire policy is one in which

a.	the government plays a major role in guiding economic activity
b.	the government prefers to control taxes rather than spending
c.	the government leaves things alone
d.	individuals rely on the government for guidance but not for active intervention in the economy
e.	businesses rely on the government for guidance but not for active intervention in the economy

 

 

ANS:  C                    PTS:   1                    DIF:    Difficulty: Moderate

NAT:  BUSPROG: Analytic

STA:   DISC: The Study of economics, and definitions in economics

TOP:   Macroeconomic Controversies         KEY:  Bloom’s: Knowledge

 

68. The term laissez faire can be translated

a.	“leave it alone”
b.	“make it equitable (fair)”
c.	“take an active role”
d.	“markets work”
e.	“free of problems”

 

 

ANS:  A                    PTS:   1                    DIF:    Difficulty: Easy

NAT:  BUSPROG: Analytic

STA:   DISC: The Study of economics, and definitions in economics

TOP:   Macroeconomic Controversies         KEY:  Bloom’s: Knowledge

 

69. The group of economists who believed that the macroeconomy worked very well on its own were

a.	microeconomists
b.	macroeconomists
c.	classical economists
d.	Keynesian economists
e.	Marxist economists

 

 

ANS:  C                    PTS:   1                    DIF:    Difficulty: Moderate

NAT:  BUSPROG: Analytic

STA:   DISC: The Study of economics, and definitions in economics

TOP:   Macroeconomic Controversies         KEY:  Bloom’s: Knowledge

 

70. Which of the following is a normative macroeconomic statement?

a.	An increase in government spending will reduce unemployment.
b.	An active government policy should be employed to maintain a healthy economy.
c.	The unemployment rate is 10 percent.
d.	There is a positive relationship between inflation and the rate of growth of money
e.	Gross domestic product grew 3 percent this year.

 

 

ANS:  B                    PTS:   1                    DIF:    Difficulty: Moderate

NAT:  BUSPROG: Analytic

STA:   DISC: The Study of economics, and definitions in economics

TOP:   Macroeconomic Controversies         KEY:  Bloom’s: Comprehension

 

71. Rapid economic growth, stable prices and __________ are the three important macroeconomic goals about which most economists agree.

a.	an unemployment rate of zero
b.	zero inflation
c.	full employment
d.	a high exchange rate
e.	low interest rates

 

 

ANS:  C                    PTS:   1                    DIF:    Difficulty: Moderate

NAT:  BUSPROG: Analytic

STA:   DISC: The Study of economics, and definitions in economics

TOP:   Macroeconomic Goals                     KEY:  Bloom’s: Knowledge

 

72. In mid-2009, the unemployment rate stood at

a.	25 percent
b.	5 percent
c.	6 percent
d.	9.5 percent
e.	20 percent

 

 

ANS:  D                    PTS:   1                    DIF:    Difficulty: Moderate

NAT:  BUSPROG: Analytic

STA:   DISC: The Study of economics, and definitions in economics

TOP:   Macroeconomic Goals                     KEY:  Bloom’s: Knowledge

 

73. Which of the following is not an important macroeconomic goal?

a.	Stable prices
b.	Full employment
c.	Rapid economic growth
d.	Low interest rates
e.	None of the above is an important macroeconomic goal

 

 

ANS:  D                    PTS:   1                    DIF:    Difficulty: Moderate

NAT:  BUSPROG: Analytic

STA:   DISC: The Study of economics, and definitions in economics

TOP:   Macroeconomic Goals                     KEY:  Bloom’s: Knowledge

 

74. For the average living standard of a nation to __________, __________ must increase faster than the price level

a.	increase; nominal GDP
b.	increase; real GDP
c.	decrease; nominal GDP
d.	remain constant; nominal GDP
e.	decrease; real GDP

 

 

ANS:  A                    PTS:   1                    DIF:    Difficulty: Moderate

NAT:  BUSPROG: Analytic

STA:   DISC: The Study of economics, and definitions in economics

TOP:   Macroeconomic Goals                     KEY:  Bloom’s: Comprehension

 

75. Since the late 1970s which of the following groups has become worse off?

a.	Highly-skilled workers
b.	Technical workers
c.	Less-skilled workers
d.	Scientists and other workers who require a lot of education
e.	All types of workers

 

 

ANS:  C                    PTS:   1                    DIF:    Difficulty: Moderate

NAT:  BUSPROG: Analytic

STA:   DISC: The Study of economics, and definitions in economics

TOP:   Macroeconomic Goals                     KEY:  Bloom’s: Knowledge

 

76. Rapid economic growth is important because it

a.	makes some people richer
b.	eliminates scarcity
c.	makes the unemployment rate zero
d.	allows the average person to consume more goods and services
e.	reduces interest rates

 

 

ANS:  D                    PTS:   1                    DIF:    Difficulty: Moderate

NAT:  BUSPROG: Analytic

STA:   DISC: The Study of economics, and definitions in economics

TOP:   Macroeconomic Goals                     KEY:  Bloom’s: Comprehension

 

77. The two phases of the business cycle are

a.	high economic growth and low economic growth
b.	expansion and contraction
c.	expansion and depression
d.	high inflation and low inflation
e.	potential economic growth and actual economic growth

 

 

ANS:  B                    PTS:   1                    DIF:    Difficulty: Moderate

NAT:  BUSPROG: Analytic

STA:   DISC: The Study of economics, and definitions in economics

TOP:   Macroeconomic Goals                     KEY:  Bloom’s: Knowledge

 

78. During the contraction phase of the business cycle

a.	employment and output are both rising
b.	employment and output are both at a peak
c.	employment and output are both at their lowest
d.	employment and output are both falling
e.	employment is falling and output is rising

 

 

ANS:  D                    PTS:   1                    DIF:    Difficulty: Easy

NAT:  BUSPROG: Analytic

STA:   DISC: The Study of economics, and definitions in economics

TOP:   Macroeconomic Goals                     KEY:  Bloom’s: Comprehension

 

79. The phase of the business cycle characterized by rising employment is called

a.	a recession
b.	a low-tax phase
c.	a high-inflation phase
d.	an expansion
e.	a depression

 

 

ANS:  D                    PTS:   1                    DIF:    Difficulty: Moderate

NAT:  BUSPROG: Analytic

STA:   DISC: The Study of economics, and definitions in economics

TOP:   The Macroeconomic Approach        KEY:  Bloom’s: Comprehension

 

 

80. Refer to Figure 5-2 above. When moving from point B to C on the graph, the economy is going through a(n)

a.	peak
b.	trough
c.	expansion
d.	downturn
e.	recession

 

 

ANS:  C                    PTS:   1                    DIF:    Difficulty: Moderate

NAT:  BUSPROG: Analytic

STA:   DISC: The Study of economics, and definitions in economics

TOP:   Macroeconomic Goals                     KEY:  Bloom’s: Application

 

81. At the peak of a business cycle, employment and GDP are

a.	at their lowest
b.	at their highest
c.	rising
d.	falling
e.	it is impossible to state for certain what is happening to employment and GDP

 

 

ANS:  B                    PTS:   1                    DIF:    Difficulty: Moderate

NAT:  BUSPROG: Analytic

STA:   DISC: The Study of economics, and definitions in economics

TOP:   Macroeconomic Goals                     KEY:  Bloom’s: Comprehension

 

82. If the economy is currently experiencing a high unemployment rate, the greatest cost is

a.	extra government spending
b.	rewarding those who do not work but collect government benefits
c.	lost output
d.	the cost of job searching
e.	the extra cost of funding job fairs

 

 

ANS:  C                    PTS:   1                    DIF:    Difficulty: Moderate

NAT:  BUSPROG: Analytic

STA:   DISC: The Study of economics, and definitions in economics

TOP:   Macroeconomic Goals                     KEY:  Bloom’s: Comprehension

 

83. If the unemployment rate has reached an all-time high, the production of output is probably

a.	high
b.	low
c.	stable
d.	fluctuating
e.	equal to its potential

 

 

ANS:  B                    PTS:   1                    DIF:    Difficulty: Easy

NAT:  BUSPROG: Analytic

STA:   DISC: The Study of economics, and definitions in economics

TOP:   Macroeconomic Goals                     KEY:  Bloom’s: Comprehension

 

84. The inflation rate in the United States has always been positive.

a.	True
b.	False

 

 

ANS:  B                    PTS:   1                    DIF:    Difficulty: Easy

NAT:  BUSPROG: Analytic

STA:   DISC: The Study of economics, and definitions in economics

TOP:   Macroeconomic Goals                     KEY:  Bloom’s: Knowledge

 

85. Why do policymakers have the goal of stable prices?

a.	Stables prices always keep the economy in expansion
b.	Firms make too much money when prices are rising
c.	Inflation is always associated with wars
d.	Inflation imposes costs on society
e.	Inflation is always associated with trade deficits

 

 

ANS:  D                    PTS:   1                    DIF:    Difficulty: Moderate

NAT:  BUSPROG: Analytic

STA:   DISC: The Study of economics, and definitions in economics

TOP:   Macroeconomic Goals                     KEY:  Bloom’s: Comprehension

 

86. Macroeconomists are able to study the entire economy by

a.	ignoring much of the data available in order to reduce the number of markets that need to be studied
b.	studying only a few markets at a time
c.	simply adding up all the prices and quantities in individual markets
d.	aggregation which reduces the number of markets that need to be studied
e.	dividing total output by the number of markets

 

 

ANS:  D                    PTS:   1                    DIF:    Difficulty: Moderate

NAT:  BUSPROG: Analytic

STA:   DISC: The Study of economics, and definitions in economics

TOP:   The Macroeconomic Approach        KEY:  Bloom’s: Knowledge

 

87. In macroeconomics, it is impossible to include many individual markets in a single data source.

a.	True
b.	False

 

 

ANS:  B                    PTS:   1                    DIF:    Difficulty: Moderate

NAT:  BUSPROG: Analytic

STA:   DISC: The Study of economics, and definitions in economics

TOP:   The Macroeconomic Approach        KEY:  Bloom’s: Knowledge

 

88. The difference between microeconomics and macroeconomics is that

a.	microeconomics deals with only small numbers while macroeconomics is always dealing with numbers in the billions and trillions
b.	microeconomics deals with the economy as a whole while macroeconomics deals with individual firms
c.	microeconomics is concerned with the behavior of individual decision-makers while macroeconomics is concerned with behavior of entire economies
d.	microeconomics is only useful for small countries while macroeconomics is useful for large countries
e.	microeconomics is only useful for large economies like the United States while macroeconomics is only useful for small economies

 

 

ANS:  C                    PTS:   1                    DIF:    Difficulty: Moderate

NAT:  BUSPROG: Analytic

STA:   DISC: The Study of economics, and definitions in economics

TOP:   The Macroeconomic Approach        KEY:  Bloom’s: Knowledge

 

89. Aggregation is important because it allows many individual variables to be combined into one larger whole.

a.	True
b.	False

 

 

ANS:  A                    PTS:   1                    DIF:    Difficulty: Moderate

NAT:  BUSPROG: Analytic

STA:   DISC: The Study of economics, and definitions in economics

TOP:   The Macroeconomic Approach        KEY:  Bloom’s: Comprehension

 

90. During the Great Depression, the economist who raised the loudest objections against the classical model was

a.	Milton Friedman
b.	John Nash
c.	Adam Smith
d.	Ben Bernanke
e.	John Maynard Keynes

 

 

ANS:  E                    PTS:   1                    DIF:    Difficulty: Easy

NAT:  BUSPROG: Analytic

STA:   DISC: The Study of economics, and definitions in economics

TOP:   Macroeconomic Controversies         KEY:  Bloom’s: Knowledge

 

91. During which decade were John Maynard Keynes’ ideas challenged?

a.	1930s
b.	1940s
c.	1960s
d.	1970s
e.	1980s

 

 

ANS:  D                    PTS:   1                    DIF:    Difficulty: Easy

NAT:  BUSPROG: Analytic

STA:   DISC: The Study of economics, and definitions in economics

TOP:   Macroeconomic Controversies         KEY:  Bloom’s: Knowledge

 

92. The Great Depression provided significant evidence that

a.	the economy always worked well on its own
b.	the economy always reached full employment on its own
c.	the economy may not always do well on its own
d.	the notion of laissez faire was correct
e.	the supporters of the classical model were correct

 

 

ANS:  C                    PTS:   1                    DIF:    Difficulty: Moderate

NAT:  BUSPROG: Analytic

STA:   DISC: The Study of economics, and definitions in economics

TOP:   Macroeconomic Controversies         KEY:  Bloom’s: Knowledge

 

93. In recent years, each 1 percent drop in output is associated with the loss of more than

a.	five million jobs
b.	one million jobs
c.	half a million jobs
d.	two hundred thousand jobs
e.	one hundred thousand jobs

 

 

ANS:  C                    PTS:   1                    DIF:    Difficulty: Moderate

NAT:  BUSPROG: Analytic

STA:   DISC: The Study of economics, and definitions in economics

TOP:   Macroeconomic Goals                     KEY:  Bloom’s: Knowledge

 

94. Recessions can sometimes last less than a single year.

a.	True
b.	False

 

 

ANS:  A                    PTS:   1                    DIF:    Difficulty: Easy

NAT:  BUSPROG: Analytic

STA:   DISC: The Study of economics, and definitions in economics

TOP:   Macroeconomic Goals                     KEY:  Bloom’s: Knowledge

 

95. The 1978 Full Employment and Balanced Growth Act called for a target unemployment rate of

a.	0 percent
b.	5 percent
c.	1 percent
d.	2 percent
e.	4 percent

 

 

ANS:  E                    PTS:   1                    DIF:    Difficulty: Easy

NAT:  BUSPROG: Analytic

STA:   DISC: The Study of economics, and definitions in economics

TOP:   Macroeconomic Goals                     KEY:  Bloom’s: Knowledge

 

96. One way to bring the inflation rate down is

a.	to reduce excessive competition
b.	to increase government spending
c.	to aggregate across markets
d.	for the government to purposely cause a severe recession
e.	to reduce taxes

 

 

ANS:  D                    PTS:   1                    DIF:    Difficulty: Moderate

NAT:  BUSPROG: Analytic

STA:   DISC: The Study of economics, and definitions in economics

TOP:   Macroeconomic Goals                     KEY:  Bloom’s: Comprehension

 

97. Economists regard some inflation as good for the economy.

a.	True
b.	False

 

 

ANS:  A                    PTS:   1                    DIF:    Difficulty: Moderate

NAT:  BUSPROG: Analytic

STA:   DISC: The Study of economics, and definitions in economics

TOP:   Macroeconomic Goals                     KEY:  Bloom’s: Knowledge

 

98. The country that suffered an extreme inflation rate of 89,700,000,000,000,000,000,000 percent in November 2008 was

a.	England
b.	Zimbabwe
c.	Germany
d.	Egypt
e.	the former Soviet Union

 

 

ANS:  B                    PTS:   1                    DIF:    Difficulty: Easy

NAT:  BUSPROG: Analytic

STA:   DISC: The Study of economics, and definitions in economics

TOP:   Macroeconomic Goals                     KEY:  Bloom’s: Knowledge

 

99. In the 1980s, several ________________ countries experienced inflation rates of thousands of percent per year.

a.	Asian
b.	Southern European
c.	Eastern European
d.	Latin American
e.	African

 

 

ANS:  D                    PTS:   1                    DIF:    Difficulty: Easy

NAT:  BUSPROG: Analytic

STA:   DISC: The Study of economics, and definitions in economics

TOP:   Macroeconomic Goals                     KEY:  Bloom’s: Knowledge

 

100. In the early 1990s, some ________________ experienced inflation rates in the triple digits.

a.	of the newly emerging nations of Central Europe and the former Soviet Union
b.	East African nations
c.	Latin American nations
d.	Asian nations
e.	West African nations

 

 

ANS:  A                    PTS:   1                    DIF:    Difficulty: Easy

NAT:  BUSPROG: Analytic

STA:   DISC: The Study of economics, and definitions in economics

TOP:   Macroeconomic Goals                     KEY:  Bloom’s: Knowledge

 

101. In cases of extreme annual inflation, such as in thousands of percent or higher, people are no longer willing to hold currency or accept it from others.

a.	True
b.	False

 

 

ANS:  A                    PTS:   1                    DIF:    Difficulty: Easy

NAT:  BUSPROG: Analytic

STA:   DISC: The Study of economics, and definitions in economics

TOP:   Macroeconomic Goals                     KEY:  Bloom’s: Comprehension

 

102. In cases of extreme annual inflation, the breakdown of the monetary system forces people to waste valuable time engaging in bartering.

a.	True
b.	False

 

 

ANS:  A                    PTS:   1                    DIF:    Difficulty: Moderate

NAT:  BUSPROG: Analytic

STA:   DISC: The Study of economics, and definitions in economics

TOP:   Macroeconomic Goals                     KEY:  Bloom’s: Comprehension

 

103. What is the difference in the concepts of economic growth and economic expansion?

a.	Both terms are used interchangeably and refer to quarterly increases in output.
b.	Economic growth refers to the long-tun upward trend in output over a longer period of time, usually more than a decade, which is measured as the average annual change in output over the period.  An expansion refers to a shorter time period during which output increases quarter by quarter or year by year.
c.	An expansion refers to the long-tun upward trend in output over a longer period of time, usually more than a decade, which is measured as the average annual change in output over the period.  Economic growth refers to a shorter time period during which output increases quarter by quarter or year by year.
d.	Both terms are used interchangeably and refer to the long-tun upward trend in output over a longer period of time, usually more than a decade, which is measured as the average annual change in output over the period.
e.	Economic growth is the term reserved for periods of prosperity in less developed countries while expansion is the term reserved for developed industrial countries.

 

 

ANS:  B                    PTS:   1                    DIF:    Difficulty: Challenging

NAT:  BUSPROG: Analytic

STA:   DISC: The Study of economics, and definitions in economics

TOP:   Macroeconomic Goals                     KEY:  Bloom’s: Comprehension

 

104. The United States has never experienced double-digit inflation.

a.	True
b.	False

 

 

ANS:  B                    PTS:   1                    DIF:    Difficulty: Moderate

NAT:  BUSPROG: Analytic

STA:   DISC: The Study of economics, and definitions in economics

TOP:   Macroeconomic Goals                     KEY:  Bloom’s: Knowledge

 

105. From 1929 to 1993, the first four years of the Great Depression, U.S. output dropped by more than

a.	10 percent
b.	80 percent
c.	5 percent
d.	50 percent
e.	25 percent

 

 

ANS:  E                    PTS:   1                    DIF:    Difficulty: Easy

NAT:  BUSPROG: Analytic

STA:   DISC: The Study of economics, and definitions in economics

TOP:   Macroeconomic Goals                     KEY:  Bloom’s: Knowledge

 

106. Seemingly positive disagreements often have normative origins.

a.	True
b.	False

 

 

ANS:  A                    PTS:   1                    DIF:    Difficulty: Moderate

NAT:  BUSPROG: Analytic

STA:   DISC: The Study of economics, and definitions in economics

TOP:   Macroeconomic Controversies         KEY:  Bloom’s: Comprehension