This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Macroeconomics – Quiz 10 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 10 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. If the CPI is 200 for the year 2010 and 300 today, then $ 600 in 2010 has the same purchasing power as ..... has today A) $ 400. B) $ 500. C) $ 700. D) $ 900. Show Answer Correct Answer: D) $ 900. 2. The total quantity of an economy's final goods and services demanded at different price levels is A) The aggregate supply curve. B) The aggregate demand curve. C) The Phillips curve. D) The aggregate expenditure function. Show Answer Correct Answer: B) The aggregate demand curve. 3. In the circular flow model, consumption goods are bought and sold in the A) Product market. B) Financial market. C) Resource market. D) Government market. Show Answer Correct Answer: A) Product market. 4. This economy would most likely have a dictator. A) Mixed. B) Capitalism. C) Socialism. D) Communism. Show Answer Correct Answer: D) Communism. 5. What are two main monetary tools the government has? A) Government spending and reserve requirement. B) Taxes and government spending. C) Buy/selling bonds and discount rate. D) Discount rate and taxes. Show Answer Correct Answer: B) Taxes and government spending. 6. Studies on individual income. A) Macroeconomics. B) Microeconomics. Show Answer Correct Answer: B) Microeconomics. 7. Unskilled workers often A) Earn the most income. B) Work the most hours for the lowest wage. C) Have the most education and training. D) Need no supervision. Show Answer Correct Answer: B) Work the most hours for the lowest wage. 8. If Americans want to purchase more South Korean cars, the supply of dollars in the foreign exchange market will ..... and demand for the Won, the South Korean currency, will ..... A) Increase, decrease. B) Increase, increase. C) Decrease, decrease. D) Decrease, increase. Show Answer Correct Answer: B) Increase, increase. 9. Samuel Gompers founded an organization that focused on the interests of ..... A) Temporary workers. B) Unskilled workers. C) Skilled workers. D) Contract workers. Show Answer Correct Answer: C) Skilled workers. 10. The major difference between real and nominal gross domestic product (GDP) is that real GDP A) Excludes government transfer payments. B) Excludes imports. C) Is adjusted for price-level changes using a price index. D) Measures only the value of final goods and services that are consumed. E) Measures the prices of a market basket of goods purchased by a typical urban consumer. Show Answer Correct Answer: C) Is adjusted for price-level changes using a price index. 11. The study of how individuals make decisions in the society is what A) Macroeconomics. B) Microeconomics. C) None of the above. D) All of the above. Show Answer Correct Answer: B) Microeconomics. 12. If the federal government simultaneously engages in expansionary monetary and fiscal policies, which of the following is likely to be the effect on interest rates/unemployment? A) Increase/indeterminate. B) Increase/decrease. C) Decrease/decrease. D) Indeterminate/decrease. E) Indeterminate/increase. Show Answer Correct Answer: C) Decrease/decrease. 13. To increase the money supply, the Fed would A) Raise the reserve requirement. B) Raise the discount rate. C) Sell bonds. D) Buy bonds. Show Answer Correct Answer: D) Buy bonds. 14. What are savings? A) The total amount of money spent in a particular period of time. B) A sum of money that is owed to someone else. C) An amount of money that has been leant to someone over a particular period of time to allow them to purchase a product. D) The money someone has not spent, usually through a bank or official scheme. Show Answer Correct Answer: D) The money someone has not spent, usually through a bank or official scheme. 15. M2 can be define as A) M1 plus saving accounts. B) M1 plus all types of deposits. C) M1 plus narrow money. D) M1 plus broads money. Show Answer Correct Answer: C) M1 plus narrow money. 16. What do you know about supply and demand? A) When supply goes up, demand also goes up. B) When supply goes down and demand is high, prices are high. C) When demand is low and supply is high, prices are high. D) None of above. Show Answer Correct Answer: B) When supply goes down and demand is high, prices are high. 17. Which of the following does not describe hyperinflation? A) Germany, Hungary, Bolivia, Ukraine, and Zimbabwe have experienced hyperinflation in the last 100 years. B) During a hyperinflation people often try to shift to a "hard" currency issued by another country. C) The purchasing power of money increases dramatically during hyperinflation. D) Hyperinflation is often defined as an annual inflation rate higher than 100 percent. E) All of these statements are accurate. Show Answer Correct Answer: C) The purchasing power of money increases dramatically during hyperinflation. 18. For all the recent talk of cutting taxes, Congress rarely cuts them when the economy is growing robustly, as it is now, and unemployment is low. The worry among economists is that the extra money in people's pockets may make an already strong economy too strong, finally stoking inflation after a long period of relatively stable prices. (Source:The New York Times, July 14, 1999.) The passage describes rising inflation as a possible result of A) Tax cuts. B) A booming economy. C) Rising unemployment. D) A prolonged period of stable prices. Show Answer Correct Answer: B) A booming economy. 19. ..... occurs when a government deficit drives up the interest rate and leads to reduced investment spending. A) Crowding Out. B) Rate of Return. C) Loanable Funds Market. D) Fisher Effect. Show Answer Correct Answer: A) Crowding Out. 20. When one decision is made, the next best alternative not selected is called A) Economic resource. B) Opportunity cost. C) Scarcity. D) Comparative advantage. Show Answer Correct Answer: B) Opportunity cost. ← PreviousNext →Related QuizzesEconomics QuizzesMacroeconomics Quiz 1Macroeconomics Quiz 2Macroeconomics Quiz 3Macroeconomics Quiz 4Macroeconomics Quiz 5Macroeconomics Quiz 6Macroeconomics Quiz 7Macroeconomics Quiz 8Macroeconomics Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books