This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Macroeconomics – Quiz 103 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 103 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What is the main reason that currency in the euro area has value? A) Because all currency is backed up with an equivalent value in gold. B) Because all currency is backed up with an equivalent value in silver. C) Because all currency is backed up with an equivalent value in government bonds. D) Because all currency is backed up with an equivalent value in government capital assets. E) Because the government declares currency to have value. Show Answer Correct Answer: E) Because the government declares currency to have value. 2. Which of the following is an advantage of the corporation as a form of business ownership: A) Less complex requirements. B) Separate owners and managers. C) Limited liability. D) High Taxes. Show Answer Correct Answer: C) Limited liability. 3. Real GDP divided by population size A) GDP. B) Real GDP. C) Real GDP per Capita. D) Nominal GDP. Show Answer Correct Answer: C) Real GDP per Capita. 4. A family buys a bag of groceries that costed $ 200 last month, but this month the cost is $ 300. Which is most likely the reason for this economic condition? A) Recession. B) Inflation. Show Answer Correct Answer: B) Inflation. 5. Which of the following best describes the concept of unlimited liability? A) The shareholders are responsible for repaying the business debts. B) Personal assets of the business owner(s) can be used to repay the business debts. C) Portions of a company's profit paid to shareholders. D) The business owner(s) is/are not responsible for paying the business debts. Show Answer Correct Answer: B) Personal assets of the business owner(s) can be used to repay the business debts. 6. If CPI goes from 100 to 300 and your salary goes from $ 100, 000 to $ 200, 000, what happened to your purchasing power? A) Increase. B) Decrease. C) No change. D) None of above. Show Answer Correct Answer: B) Decrease. 7. Most economists believe that a tradeoff between inflation and unemployment exists A) Only in the short run. B) Only in the long run. C) In both the short and long run. D) In neither the short nor long run. Show Answer Correct Answer: A) Only in the short run. 8. In order to increase the amount of money in the economy, what kind of interest rate should the central bank set? A) Make the interest rate lower. B) Make the interest rate higher. C) Make the interest rate fixed. D) All wrong. Show Answer Correct Answer: A) Make the interest rate lower. 9. The toyota is the microeconomics company A) True. B) False. Show Answer Correct Answer: A) True. 10. Jeff was replaced by a computer. He is experiencing what type of unemployment? A) Cyclical. B) Structural. C) Seasonal. D) Frictional. Show Answer Correct Answer: B) Structural. 11. The gasoline tax is an example of the ..... principle. A) Benefit received. B) Progressive tax. C) Free rider. D) Ability to pay. Show Answer Correct Answer: A) Benefit received. 12. Which one of the following is most likely to result in a rise in savings by households? A) Higher interest rates and higher income tax. B) Lower interest rates and higher income tax. C) Higher interest rates and lower income tax. D) Lower interest rates and lower income tax. Show Answer Correct Answer: C) Higher interest rates and lower income tax. 13. If aggregate output is greater than planned spending, then A) Unplanned inventory investment is zero. B) Unplanned inventory investment is negative. C) Unplanned inventory investment is positive. D) Actual investment equals planned investment. Show Answer Correct Answer: C) Unplanned inventory investment is positive. 14. Money loses its value when it A) It becomes too plentiful. B) Becomes too portabale. C) Is divisible. D) Is durable. Show Answer Correct Answer: A) It becomes too plentiful. 15. In the United States, monetary policy is determined by which of the following? A) The Federal Reserve. B) Congress. C) The president. D) The stock market. Show Answer Correct Answer: A) The Federal Reserve. 16. In response to a rising Consumer Price Index, the Federal Reserve could A) Raise taxes. B) Lower government spending. C) Lower the discount rate. D) Sell securities on the open market. Show Answer Correct Answer: D) Sell securities on the open market. 17. Which component of GDP does the following examples contain? A mechanic fixes his own transmission A) Consumption. B) Investment. C) Government spending. D) Not counted towards GDP. Show Answer Correct Answer: D) Not counted towards GDP. 18. What is the difference between a Surplus and a Shortage? A) There is a Surplus when the supply exceeds demand; there is a Shortage when demand exceeds supply. B) There is a Shortage when the supply exceeds demand; there is a Surplus when demand exceeds supply. Show Answer Correct Answer: A) There is a Surplus when the supply exceeds demand; there is a Shortage when demand exceeds supply. 19. Natasha and Bruce can produce Thing A and Thing B. Assume Natasha has a comparative advantage in producing Thing A. Who has a comparative advantage in producing Thing B? A) Natasha. B) Bruce. C) Not enough information to tell. D) Tony. Show Answer Correct Answer: B) Bruce. 20. The purpose of imposing tariffs (import duties on imported goods) is: A) To avoid price fluctuations. B) To maintain the trade balance. C) To protect local producers. D) All wrong. Show Answer Correct Answer: C) To protect local producers. ← 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