This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Macroeconomics – Quiz 102 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 102 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. At the existing price, the quantity demanded exceeds the quantity supplied; also called a shortage A) Shortage. B) Factors of Production. C) Excess Supply. D) Excess Demand. Show Answer Correct Answer: D) Excess Demand. 2. What is included in the monetary base? A) All deposits in banks and money in circulation. B) Money held in bank vaults and money held by the public. C) Any asset of any value including cash, stocks, and bonds. D) Only paper currency and coins. E) Only money held by the public. Show Answer Correct Answer: B) Money held in bank vaults and money held by the public. 3. When the economy is moving in the right direction and is associated with the opening of new businesses, new technology and capital, more productive workers in knowledge and skills. A) Economic Growth. B) Price Stability. C) Full Employment. D) None of above. Show Answer Correct Answer: A) Economic Growth. 4. The ..... is the smallest fraction of deposits that the Federal Reserve allows banks to hold. A) Required Reserve Ratio. B) Bank Reserves. C) Reserve Ratio. D) Reserve Requirements. Show Answer Correct Answer: A) Required Reserve Ratio. 5. When individuals are searching for greener pastures is considered what type of unemployment? A) Frictional. B) Cyclical. C) Structural. D) Seasonal. Show Answer Correct Answer: A) Frictional. 6. If 1 $ = Rs. 50 and now it becomes 1 $ = Rs 40 it will be called A) Depreciation. B) Appreciation. C) Devaluation. D) None of the above. Show Answer Correct Answer: B) Appreciation. 7. Consumption of all goods and services in the economy during the period of an accounting year is know as: A) Aggregate demand. B) Aggregate consumption. C) Aggregate supply. D) None of these. Show Answer Correct Answer: B) Aggregate consumption. 8. During a financial crisis, the Federal Reserve (the Fed) is the A) Lender of Last Resort. B) Money Taker. C) Fixer of the Economy. D) Supplier of Money. Show Answer Correct Answer: A) Lender of Last Resort. 9. It processes factor inputs into finished products. A) HOUSEHOLDS. B) FIRMS. C) GOVERNMENT. D) BANKS. E) INTERNATIONAL TRADE. Show Answer Correct Answer: B) FIRMS. 10. In conducting open market operations with a view to expansionary monetary policy A) The Reserve bank increases interest rates. B) The Reserve bank sells government securities to the financial sector. C) The financial sector buys government securities from the government. D) The Reserve bank buys government securities from the financial sector. Show Answer Correct Answer: D) The Reserve bank buys government securities from the financial sector. 11. When a third party hears arguments from two competing parties and renders a decision to be followed by the two parties A) Arbitration. B) Mediation. C) Cooperative. D) Collective Bargaining. Show Answer Correct Answer: A) Arbitration. 12. Trade policy to restrict imports A) Doesn't affect S or I, NX shift right but eq level unchanged, only appreciation of e. B) Doesn't affect S or I, NX shift left but eq level unchanged, only appreciation of e. C) Doesn't affect S or I, NX shift right but eq level unchanged, only depreciation of e. D) Affects S and I, NX shift right but eq level unchanged, only appreciation of e. Show Answer Correct Answer: A) Doesn't affect S or I, NX shift right but eq level unchanged, only appreciation of e. 13. Assume a country has a population of 1, 000. If 400 people are employed and 100 people are unemployed, what is the country's unemployment rate? A) 50%. B) 40%. C) 25%. D) 20%. E) 10%. Show Answer Correct Answer: D) 20%. 14. The Federal Reserve's target rate for the federal funds rate A) Is an extra policy tool for the central bank, in addition to and independent of the money supply. B) Commits the Fed to set a particular money supply so that it hits the announced target. C) Is a goal that is rarely achieved, because the Fed can determine only the money supply. D) Matters to banks that borrow and lend federal funds but does not influence aggregate demand. Show Answer Correct Answer: B) Commits the Fed to set a particular money supply so that it hits the announced target. 15. What is the name of your truly lecturer? A) Syarifah Rabiah Al Adawiah binti Syed Badrul Hisham. B) Sharifah Rabiyah Al Adawiyah binti Syed Badrul Hisham. C) Syarifah Rabiyah Al Adawiah binti Syed Badrul Hisham. D) Syarifah Rabiyah Al Adawiyah binti Syed Badrul Hisham. Show Answer Correct Answer: C) Syarifah Rabiyah Al Adawiah binti Syed Badrul Hisham. 16. Goods and services that are NOT produced in a country, but come from another country to be sold. A) Import. B) Export. C) Goods. D) Services. Show Answer Correct Answer: A) Import. 17. An economy is in a short run equilibrium at a level of output that is less than full employment output. If there were no fiscal or monetary policy interventions, which of the following changes in output and price level would occur in the long run? A) Increase/decrease. B) Increase/increase. C) Decrease/decrease. D) Decrease/increase. E) No change/no change. Show Answer Correct Answer: A) Increase/decrease. 18. Which of the following jobs would be least likely to be subjected to seasonal unemployed? A) Lifeguard. B) Taco Bell cashier. C) Department store Santa. D) Ski-lift operator. Show Answer Correct Answer: B) Taco Bell cashier. 19. How do you calculate the unemployment rate? A) Percent of people unemployed(# unemployed)/(# in labor force) x 100. B) Frictional + structural unemployment. C) % change in prices = (year 2-year 1)/(year 1) x 100. D) None of above. Show Answer Correct Answer: A) Percent of people unemployed(# unemployed)/(# in labor force) x 100. 20. Difference between sale of assets to foreigners and purchases of assets from foreigners is called ..... A) Financial account. B) Exchange account. C) International trade. D) Current account. Show Answer Correct Answer: A) Financial account. ← 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