This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Macroeconomics – Quiz 110 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 110 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. How could a nation's economy achieve a favorable balance of trade? A) By importing goods equal in value to its exports. B) By exporting more goods and services than it imports. Show Answer Correct Answer: B) By exporting more goods and services than it imports. 2. Match the following description with the factor that impacts growth in developing nations:Governments that spend money on improved healthcare and education can raise the standard of living. A) Geography and Natural Resources. B) History and Government. C) Investments in Human Capital. D) Cultural Beliefs and Religion. Show Answer Correct Answer: C) Investments in Human Capital. 3. A bank has capital of $ 200 and a leverage ratio of 5. If the value of the bank's assets declines by 10 percent, then its capital will be reduced to A) $ 100. B) $ 150. C) $ 180. D) $ 185. Show Answer Correct Answer: A) $ 100. 4. Deregulation means the ..... A) Reduction or elimination of government power in a particular industry, usually enacted to create more competition within the industry. B) Increase of government power in a particular industry, usually enacted to create more competition within the industry. Show Answer Correct Answer: A) Reduction or elimination of government power in a particular industry, usually enacted to create more competition within the industry. 5. The Keynesian money demand function expressed money demand as a function of (the) A) Income only. B) Income and nominal return on durable goods. C) Nominal return on durable goods and equities. D) Income and the interest rate. E) Nominal return on equities and the interest rate. Show Answer Correct Answer: D) Income and the interest rate. 6. How are the people that serve on the Board of Governors chosen? A) Nominated by the president and approved by the senate. B) They are the seven most recent Bank presidents. C) They are the Governors of the states with Federal Reserve District Banks. D) Nominated by the Chairman of the Board and approved by the president. Show Answer Correct Answer: A) Nominated by the president and approved by the senate. 7. The study of large-scale economic factors dealing with the economy of a nation, region, or of the world as a whole is called: A) Microeconomics. B) Macroeconomics. C) GDP. D) Supply & demand. Show Answer Correct Answer: B) Macroeconomics. 8. Structural unemployment is best described as unemployment arising from A) The elimination of jobs as a result of technological change. B) An increase in the number of workers searching for better-paying jobs. C) An increase in the number of jobs demanding unskilled labor. D) The temporary reduction of jobs during a downturn in the business cycle. E) The reduction in jobs due to seasonal changes in demand. Show Answer Correct Answer: A) The elimination of jobs as a result of technological change. 9. Inflationary gap occurs when ..... It means the economy is experiencing low level of unemployment. A) Current output> Long-run Output. B) Current Output C) Current Output=Long-run Output. D) None of above. Show Answer Correct Answer: A) Current output> Long-run Output. 10. Consumption includes expenditure on: A) Durable goods and services. B) Non-durable goods and services. C) Both durable and non-durable expenditure. D) Tangible items only. Show Answer Correct Answer: C) Both durable and non-durable expenditure. 11. The discovery of new technologies promotes economic growth. A) True. B) Lie. Show Answer Correct Answer: A) True. 12. An increase in the aggregate demand for goods and services has a larger impact on output ..... and a larger impact on the price level ..... A) In the short run, in the long run. B) In the long run, in the short run. C) In the short run, also in the short run. D) In the long run, also in the long run. Show Answer Correct Answer: A) In the short run, in the long run. 13. These are government programs intended to protect families against economic hardship. A) Social Insurance. B) Stabilization Policy. C) Contractionary Fiscal Policy. D) None of above. Show Answer Correct Answer: A) Social Insurance. 14. Contractionary or Expansionary?As part of the CREATE law, corporate income tax cuts are mandated. What type of macroeconomic policy is being described in this case? A) Contractionary. B) Expansionary. Show Answer Correct Answer: B) Expansionary. 15. Which is true, based on the Law of Demand? A) If price is high, people will want less. B) If price is high, people will want more. C) If price is low, people will want less. D) If price is low, people will want the same amount. Show Answer Correct Answer: A) If price is high, people will want less. 16. Input A) Additional. B) The claim that, other things equal, the quantity supplied of a good rises when the price of the good rises. C) The claim that, other things being equal, the quantity demanded of a good falls when the price of the good rises. D) Any resources used to create goods and services. Examples of inputs include labor (workers' time), fuel, materials, buildings, and equipment. Show Answer Correct Answer: D) Any resources used to create goods and services. Examples of inputs include labor (workers' time), fuel, materials, buildings, and equipment. 17. Monetary policy is defined as the A) Buying and selling of currency in foreign exchange markets. B) Taxing and spending decisions of the United States Government. C) Interaction of buyers and sellers in the market place. D) Decisions of the Federal Reserve System that determine the money supply. Show Answer Correct Answer: D) Decisions of the Federal Reserve System that determine the money supply. 18. At the farmer's market all the booths sold red tomatoes. What type of market structure does this represent? A) Monopoly. B) Oligopoly. C) Pure competition. D) Monolistic competition. Show Answer Correct Answer: C) Pure competition. 19. The "sticky wage" theory states that ..... A) Wages may stay at above-equilibrium levels for an extended period of time, thus keeping unemployment low. B) Wages may stay at above-equilibrium levels for an extended period of time, thus keeping unemployment high. C) Wages may stay at below-equilibrium levels for an extended period of time, thus keeping unemployment low. D) Wages may stay at below-equilibrium levels for an extended period of time, thus keeping unemployment high. E) Wages may stay at equilibrium levels for an extended period of time, thus keeping unemployment low. Show Answer Correct Answer: B) Wages may stay at above-equilibrium levels for an extended period of time, thus keeping unemployment high. 20. Which of the following measures the change in value of a basket of goods and services purchased by the average urban consumer? A) Consumer Price Index. B) Producer Price Index. C) Purchaser Price Index. D) Connoisseur. Show Answer Correct Answer: A) Consumer Price Index. ← 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