This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Macroeconomics – Quiz 11 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 11 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Aggregate demand is the total aggregate output and price level of economy in a given period. A) TRUE. B) FALSE. Show Answer Correct Answer: A) TRUE. 2. Goods which are meant for consumption purpose are called A) Capital goods. B) Durable capital goods. C) Consumption goods. D) Intermediate goods. Show Answer Correct Answer: C) Consumption goods. 3. Coins in the people pockets are A) Excluded from both M1 and M2. B) Included in both M1 and M2. C) Included in M1, but not in M2. D) Included in M2, but not in M1. Show Answer Correct Answer: B) Included in both M1 and M2. 4. A person who borrows a 30 year fixed rate mortgage is likely to benefit from inflation. True or False? A) True. B) False. Show Answer Correct Answer: A) True. 5. A production possibilities curve can shift outward if: A) Government increases the amount of money in the economy. B) There is technological improvement. C) Resources are shifted from the production of one good to the production of the other good. D) The economy abandons inefficient production methods in favor of efficient production methods. Show Answer Correct Answer: B) There is technological improvement. 6. Your money remains tax-deferred in this account until you withdraw (taxed as income) A) ROTH IRA. B) Traditional IRA. Show Answer Correct Answer: B) Traditional IRA. 7. Has a GDP Per Capita of $ 59, 800 A) Canada. B) United States. Show Answer Correct Answer: B) United States. 8. Choose the CORRECT answer for types of inflation. A) Cost-push inflation, Demand-pull inflation & Imported inflation. B) Aggregate inflation, safe-cost inflation & uncontrollable inflation. C) Marriage inflation, Education inflation & Mobile inflation. D) None of above. Show Answer Correct Answer: A) Cost-push inflation, Demand-pull inflation & Imported inflation. 9. Unemployed due to a downturn in overall economic activity A) Cyclical. B) Seasonal. C) Frictional. D) Structural. Show Answer Correct Answer: A) Cyclical. 10. Which of the following will be counted as unemployed by the US Bureau of Labor Statistics? A) Persons who quit their previous jobs to stay at home to care for sick parents. B) Persons who were laid off from their previous jobs and have not applied for a job in two years. C) Persons who were fired from their previous jobs and are actively looking for work. D) Persons who quit their previous jobs to start their own businesses. Show Answer Correct Answer: C) Persons who were fired from their previous jobs and are actively looking for work. 11. Baron purchases a factory for his sneaker company. The factory is classified as which factor of production? A) Land. B) Labor. C) Capital. D) Entrepreneurship. Show Answer Correct Answer: C) Capital. 12. A public sector option for employment paid at a living wage to anyone willing and able to contribute time to public purpose A) Universal Basic Income (UBI). B) Universal Job Guarantee (UJG). C) Universal Basic Services (UBS). D) Democratic Socialism. Show Answer Correct Answer: B) Universal Job Guarantee (UJG). 13. The total demand for goods and services in the economy. A) Aggregate supply. B) Aggregate demand. Show Answer Correct Answer: B) Aggregate demand. 14. When incidence and burden of tax falls on different persons that type of tax is called: A) Direct tax. B) Indirect tax. C) Regressive tax. D) None of these. Show Answer Correct Answer: B) Indirect tax. 15. An increase in government spending will lead to? A) Increase in AD. B) Increase in AS. C) Decrease in AD. D) Decrease in AS. Show Answer Correct Answer: A) Increase in AD. 16. Which is an example of a NON-RENEWABLE resource? A) Fossil fuels. B) Soil. C) Animals. D) Trees. Show Answer Correct Answer: A) Fossil fuels. 17. Which of following is true when the output gap is negative? A) Aggregate output is above potential output. B) The unemployment rate is below the natural rate. C) The economy is experiencing inflation. D) Potential output is above aggregate output. E) The natural rate of unemployment is decreasing. Show Answer Correct Answer: D) Potential output is above aggregate output. 18. What is firm's sector? A) All consumers in the whole world. B) Amount of money firm's make. C) The part of the economy containing all for-profit firms that aren't owned by government. D) None of the above. Show Answer Correct Answer: D) None of the above. 19. Which of the following is a policy used by the central bank to control the amount of money in the economy? A) Monetary policy. B) Monetary policy. C) Free trade policy. D) All the points are correct. Show Answer Correct Answer: A) Monetary policy. 20. It is generally used to mean any sustained or continuing increase in price. A) Hyperinflation. B) Net increase in stock. C) Per capita income. D) Inflation. Show Answer Correct Answer: D) Inflation. ← 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