This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Macroeconomics – Quiz 101 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 101 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What is one disadvantage of capitalism? A) Promotes environmental protection. B) Can lead to inequality and exploitation. C) Encourages government intervention in the economy. D) Ensures equal distribution of wealth. Show Answer Correct Answer: B) Can lead to inequality and exploitation. 2. TRUE or FALSE:The OECD's "Better Life Index" is an example for a composite indicator of well-being. A) TRUE. B) FALSE. Show Answer Correct Answer: A) TRUE. 3. Which of the following is true about a country's national debt? A) It is the sum of the country's trade deficit and government budget deficit. B) It increases when gross domestic product increases. C) It increases when the country's government has a budget deficit. D) It decreases when the country's exports exceed its imports. E) It decreases when national savings decrease. Show Answer Correct Answer: C) It increases when the country's government has a budget deficit. 4. Mark always changes his own oil. Is this effort counted in GDP? A) No-Black Market. B) No-Non-market Activity. C) No-Unreported Income. D) No-Purely financial transaction. Show Answer Correct Answer: B) No-Non-market Activity. 5. ..... the relationship between quantity of inputs used to make a good and the quantity of output of that good. A) Externality. B) Capital. C) Production function. D) None of above. Show Answer Correct Answer: C) Production function. 6. Human capital A) A decrease in the input price for productionland, labor, capital, entrepreneurship. B) The quantity at which quantity demanded and quantity supplied are equal for a certain price level. C) The quantity at which quantity demanded and quantity supplied are equal for a certain price levelthe quantity at which quantity demanded and quantity supplied are equal for a certain price level. D) The knowledge and skills that workers acquire through education, training, and experience. Show Answer Correct Answer: D) The knowledge and skills that workers acquire through education, training, and experience. 7. Sticky price model SRAS eq A) Y=Y.+a(P-EP). B) Y=Y.+a(EP-P). C) Y=Y.-a(P-EP). D) Y=Y+a(P-EP). Show Answer Correct Answer: A) Y=Y.+a(P-EP). 8. If the Federal Reserve raises interest rates to combat rapid inflation, what might be a negative outcome? A) Unemployment rates would rise. B) Taxes will rise. C) The government would put a freeze on prices. D) International trade would stop. Show Answer Correct Answer: A) Unemployment rates would rise. 9. The general rise in prices is known as: A) Inflation. B) Unemployment Rate. C) Business Cycle. D) Expansion. Show Answer Correct Answer: A) Inflation. 10. Which of the following people would count towards the labor force? A) Peter is a homemaker with 4 children. B) Kiley is retired and now volunteers her time to the local library. C) Lawrence is 15 and can't wait to get his first job. D) Aaron works a few hours a week bartending. Show Answer Correct Answer: D) Aaron works a few hours a week bartending. 11. Which of the following is MOST likely to promote economic growth? A) A decrease in business tax credits for investment spending. B) A decrease in federal student education grants. C) An increase in investment in tools and machinery. D) A decrease in the labor force participation rate. Show Answer Correct Answer: C) An increase in investment in tools and machinery. 12. Which type of unemployment occurs when individuals are in between jobs? A) Cyclical unemployment. B) Structural unemployment. C) Seasonal unemployment. D) Frictional unemployment. Show Answer Correct Answer: D) Frictional unemployment. 13. The American Recovery and Reinvestment (ARRA) of 2009 was destined to combat which of the following types of unemployment? A) Seasonal Unemployment. B) Structural Unemployment. C) Frictionally Unemployment. D) Cyclical Unemployment. Show Answer Correct Answer: D) Cyclical Unemployment. 14. When the FED raises interest rates, banks will ..... interest rates on loans. A) Increase. B) Decrease. Show Answer Correct Answer: A) Increase. 15. Which term is used to describe a company's ability to produce a good at a lower opportunity cost than another company? A) Trade imbalance. B) Absolute Advantage. C) Non-structural barrier. D) Comparative advantage. Show Answer Correct Answer: D) Comparative advantage. 16. A Toyota Innova car is sold for IDR 240, 000, 000 in Indonesia, then exported to Saudi Arabia for a price there of 72, 000, 000 Saudi Riyals. Assuming purchasing power parity theory is met, what is the nominal exchange rate (Riyals per Rupiah)? A) 3.33. B) 3. C) 0, 3. D) 0, 33. Show Answer Correct Answer: C) 0, 3. 17. Cisco Systems purchased new wireless network for their plant. Bob was fired from his job laying down wire in the factory, because his skills were no longer needed. Bob was looking for a job laying wires for other companies, but it seems they have all gone wireless. Bob is experiencing which type of unemployment? A) Structural Unemployment. B) Frictional Unemployment. C) Cyclical Unemployment. D) Seasonal Unemployment. Show Answer Correct Answer: A) Structural Unemployment. 18. Which of the following jobs would be considered seasonal? A) Snow plow driver. B) Cashier at a grocery store. C) Part-time veterinary tech. D) Traveling nurse. Show Answer Correct Answer: A) Snow plow driver. 19. The equation of exchange can be written as A) M X P = V X Q. B) M X V = P X Q. C) M X Q = P X V. D) Q X M = P X V. Show Answer Correct Answer: B) M X V = P X Q. 20. What causes cost-push inflation? A) An increase in demand. B) A fall in the price of imports. C) A rise in production costs passed on to consumers. D) None of above. Show Answer Correct Answer: C) A rise in production costs passed on to consumers. ← 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