This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Macroeconomics – Quiz 100 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 100 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. When people can't find a job because of a lack of demand for their skills or type of labor, this is called? A) Frictional Unemployment. B) Structural Unemployment. C) Cyclical Unemployment. D) None of above. Show Answer Correct Answer: B) Structural Unemployment. 2. Capital income A) MPK x K. B) MPK x L. C) MPL x L. D) MPL x K. Show Answer Correct Answer: A) MPK x K. 3. Money acts as the basis of credit system. This is a ..... function of money. A) Primary. B) Secondary. C) Contingent. D) Miscellaneous. Show Answer Correct Answer: C) Contingent. 4. All of the things necessary for production are known as: A) Production. B) Entrepreneurship. C) Outputs. D) Resources. Show Answer Correct Answer: D) Resources. 5. $\Delta k=sf\left(k\right)-\left(\delta+n+g\right)k$ A) Equation of motion for k with population growth and technological progress. B) False. Show Answer Correct Answer: A) Equation of motion for k with population growth and technological progress. 6. Choose the best suggestion for building and maintaining a good credit score A) Have money in savings and protected against identity theft. B) Keep debt low and pay bills on time. C) Make safe investments and set clear financial goals. D) Comparison shop and follow a budget. Show Answer Correct Answer: B) Keep debt low and pay bills on time. 7. Sam and Sadie charge people to park on their lawn while attending a nearby craft fair. At the current price of $ 10, eight people park on their lawn. If they raise the price to $ 15, they know that only six people will want to park on their lawn. Whether they have eight or six cars parked on their lawn does not affect their costs. From this information it follows that A) They should leave the price at $ 10. B) It does not matter if they charge $ 10 or $ 15. C) They would do better charging $ 15 and $ 10. D) They should raise the price even more. E) They should lower the price even more. Show Answer Correct Answer: C) They would do better charging $ 15 and $ 10. 8. Which item would be considered a "soft commodity" ? A) Diamonds. B) Sugar. C) Coal. D) Limestone. Show Answer Correct Answer: B) Sugar. 9. Which of the following is NOT one of the 3 tools of the fed. A) Open market operations. B) Changing the discount rate. C) Changing the reserve requirement. D) Changing the tax rate. Show Answer Correct Answer: D) Changing the tax rate. 10. Statutory reserves are A) Money saved in commercial banks. B) Compulsory savings made by commercial banks in the central bank. C) Interest rates given by commercial banks. D) Investment savings in commercial banks. Show Answer Correct Answer: B) Compulsory savings made by commercial banks in the central bank. 11. Maria and Sara borrow $ 15, 000 from the same bank to buy the same kind of car. Maria's credit score is 732 and Sara's credit score is 588. Who is likely to pay the lower finance charge? A) They will pay the same because they are borrowing from the same bank. B) Maria. C) Sara. D) They will pay the same because they are buying the same kind of car. Show Answer Correct Answer: B) Maria. 12. Something of value used to secure a loan A) Finance charge. B) Unsecured loan. C) Collateral. D) Interest. Show Answer Correct Answer: C) Collateral. 13. The United States buys more goods and services than it sells. This is an example of an ..... A) Favorable Balance of Trade. B) Unfavorable Balance of Trade. C) Interdependence. D) Comparative Advantage. Show Answer Correct Answer: B) Unfavorable Balance of Trade. 14. GDP is in the process of declining during a(an) A) Peak. B) Contraction. C) Expansion. D) Trough. Show Answer Correct Answer: B) Contraction. 15. It refers to the analysis of the general movement of the economy. A) Microeconomics. B) Macroeconomics. C) Economics. D) Ergonomics. Show Answer Correct Answer: B) Macroeconomics. 16. M2 refersto to a broaders definition of money supply and consists of M1 and near money. A) TRUE. B) FALSE. Show Answer Correct Answer: A) TRUE. 17. This occurs when aggregate output is above potential output. A) Inflationary Gap. B) Recessionary Gap. C) LRAS shifts down. D) LRAS shifts on the z-axis. Show Answer Correct Answer: A) Inflationary Gap. 18. In the short run, policy that changes aggregate demand changes A) Both unemployment and the price level. B) Neither unemployment nor the price level. C) Only unemployment. D) Only the price level. Show Answer Correct Answer: A) Both unemployment and the price level. 19. This group is responsible for implementing fiscal policy A) Supreme Court. B) Federal Reserve Board. C) Council of Economic Advisors. D) U.S. Congress. Show Answer Correct Answer: D) U.S. Congress. 20. What is the "liquidity trap" in the context of the IS-LM model? A) A situation where interest rates are very high. B) A situation where changes in the money supply have no effect on interest rates. C) A situation where the LM curve is vertical. D) A situation where fiscal policy is ineffective. Show Answer Correct Answer: C) A situation where the LM curve is vertical. ← 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