This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Macroeconomics – Quiz 107 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 107 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which policy helps the Federal Reserve to regulate the economy? A) Monetary policy. B) Economic policy. Show Answer Correct Answer: A) Monetary policy. 2. Example of a Liability: A) Boat. B) Insurance Payment. C) Electric Bill. D) Snowmobile Loan. Show Answer Correct Answer: D) Snowmobile Loan. 3. Which of the following is a supply-side policy aimed at increasing competition? A) Implementing price controls. B) Deregulating industries. C) Increasing government spending. D) Increasing interest rates. Show Answer Correct Answer: B) Deregulating industries. 4. What is one advantage of capitalism? A) Discourages economic growth. B) Leads to equal distribution of wealth. C) Promotes government control over resources. D) Promotes innovation and competition. Show Answer Correct Answer: D) Promotes innovation and competition. 5. The lowest legal price that can be paid for a product: A) Price. B) Price Ceiling. C) Price Floor. D) Surplus. Show Answer Correct Answer: C) Price Floor. 6. The Federal Open Market Committee A) Combines the Board of Governors and the 12 Reserve Banks. B) Contains approximately 8.039 commercial banks. C) Ensures safety deposits. D) None of above. Show Answer Correct Answer: A) Combines the Board of Governors and the 12 Reserve Banks. 7. In economics, the term 'investment' refers to: A) Purchasing shares and fixed term securities. B) Spending on physical products that are intended to be used as inputs in production process. C) Purchasing a piece of existing real estate. D) Purchasing goods or services. Show Answer Correct Answer: B) Spending on physical products that are intended to be used as inputs in production process. 8. Disposable income can be written as ..... A) C = S + I. B) Y = C + I. C) Y = C + I + G. D) Y-T. Show Answer Correct Answer: D) Y-T. 9. Work that requires minimal specialized skill and training A) Derived demand. B) Productivity of labor. C) Equilibrium wage. D) Unskilled labor. E) Semi-skilled labor. Show Answer Correct Answer: E) Semi-skilled labor. 10. When the short-term interest rate ....., the opportunity cost of holding money ....., and the quantity of money individuals want to hold ..... A) Rises; rises; rises. B) Rises; falls; rises. C) Rises; falls; falls. D) Falls; falls; rises. E) Falls; falls; falls. Show Answer Correct Answer: D) Falls; falls; rises. 11. Which of the following policies is most likely to increase potential output in the long run? A) Policies that encourage more household spending. B) Policies that encourage more saving for retirement. C) Taxes on business investment. D) Weakening protections on intellectual property. E) Taxes on the gains from the sale of assets. Show Answer Correct Answer: B) Policies that encourage more saving for retirement. 12. What is a main goal of the Federal Reserve? A) To control inflation. B) To allow price levels for goods and services to rise by 10 percent. C) To allow price levels for goods and services to rise by 15 percent. D) To allow price levels for goods and services to rise by 20 percent. Show Answer Correct Answer: A) To control inflation. 13. Monetary policy, or changing the money supply to influence the economy, is controlled by who? A) Congress and the President. B) The Federal Reserve. Show Answer Correct Answer: B) The Federal Reserve. 14. Which one of the following is not included as part of the manufactured capital stock of Europe? A) Factories. B) Consumer durable goods. C) Stocks traded on the stock market. D) Computer software. E) Inventories. Show Answer Correct Answer: C) Stocks traded on the stock market. 15. Governments actions and policies that restrict international trade, with the intent of protecting local business and jobs from foreign companies, also known as Free Trade. A) True. B) False. Show Answer Correct Answer: B) False. 16. Labour force participation has been rising over time in many countries. What is the most likely reasons for this trend? A) Unemployment has fallen. B) More females have entered employment. C) The working population has increased. D) More people are retiring earlier. Show Answer Correct Answer: B) More females have entered employment. 17. Which of these people would be considered a part of the Civilian Labor Force A) A inmate at a prison. B) A Military Officer. C) A Bus Driver for a school. D) A patient at a mental Institution. Show Answer Correct Answer: C) A Bus Driver for a school. 18. A worker who is unemployed due to fluctuations in the business cycle is considered ..... A) Frictionally unemployed. B) Structurally unemployed. C) Cyclically unemployed. D) A discouraged worker. Show Answer Correct Answer: C) Cyclically unemployed. 19. Scarcity of resource means ..... A) Resources are more. B) Resources are plenty. C) Resources are not available to meet the requirements. D) None of above. Show Answer Correct Answer: C) Resources are not available to meet the requirements. 20. This type of money does not have any intrinsic value and does not represent an asset in a vault. A) Commodity money. B) Representative money. C) Fiat money. D) None of above. Show Answer Correct Answer: C) Fiat money. ← 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