This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Macroeconomics – Quiz 111 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 111 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of the economic systems listed below involves government ownership of the factors of production? A) Command Economy. B) Market Economy. C) Traditional Economy. D) All of the Above. Show Answer Correct Answer: A) Command Economy. 2. A shoemaker increases its bulk purchases of leather to keep up with demand. Is this included in GDP? A) Yes-Investment. B) Yes-Government Spending. C) No-Intermediate Goods. D) No-used item. Show Answer Correct Answer: C) No-Intermediate Goods. 3. Imagine a country where the pricing of goods and services, as well as economic decisions, are guided by the interactions of its individual citizens and businesses. What type of economic system is this? A) Market Economy. B) Traditional Economy. C) Mixed Economy. D) Command Economy. Show Answer Correct Answer: A) Market Economy. 4. The following is not a subject matter of macroeconomics A) National income accounting. B) Law of demand and supply. C) Business cycle. D) Inflation. E) Law of demand and supply. Show Answer Correct Answer: B) Law of demand and supply. 5. If US exports = 100$ and US imports = 200$ , then Net Exports = A) 100$. B) 300$. C) -100$. D) -300$. Show Answer Correct Answer: C) -100$. 6. A monopoly based on the absence of other sellers in a certain location is called A) An oligopoly. B) A geographic monopoly. C) A natural monopoly. D) A locational monopoly. Show Answer Correct Answer: B) A geographic monopoly. 7. Depreciation means (i)(ii)r(iii)(iv) A) Destruction of a plant in fire accident. B) Loss of fixed assets over time. C) Loss of fixed assets in an earthquake. D) Closure of the plant due to lockout. Show Answer Correct Answer: B) Loss of fixed assets over time. 8. GDP, growth, business cycles, and unemployment are all central topics in: A) Microeconomics. B) Macroeconomics. C) Utility theory. D) Wage determination. Show Answer Correct Answer: B) Macroeconomics. 9. Refusal to trade with another country because of their policies is called? A) Tariff. B) Embargo. C) Trade Agreement. D) None of the above. Show Answer Correct Answer: B) Embargo. 10. What was Adam Smith known as? A) Father of modern economics. B) Creator of GDP. C) Creator of CPI. D) Karl Marx's little brother. Show Answer Correct Answer: A) Father of modern economics. 11. Government involvement in a market economy is. A) Low. B) High. Show Answer Correct Answer: A) Low. 12. Explain the tools used in monetary policy. A) Open market operations, reserve requirements, and the discount rate. B) Stock market, bond market, and foreign exchange market. C) Tax policy, government spending, and exchange rates. D) Fiscal policy, interest rates, and inflation. Show Answer Correct Answer: A) Open market operations, reserve requirements, and the discount rate. 13. If an economy is at its Natural Rate of Unemployment ..... A) Only Cyclical Unemployment would be present. B) There would be no frictional unemployment. C) Only frictional and structural unemployment would be present. D) Everyone is working Everyone is working. Show Answer Correct Answer: C) Only frictional and structural unemployment would be present. 14. The money demand curve is downward sloping because A) The transaction demand for money decreases as interest rates fall. B) People hold less money as the opportunity cost of holding money rises. C) Money is less liquid as interest rates rise, so people are able to hold less of it. D) Banks are more willing to create money when interest rates fall. E) Withhigherincomes, peoplearewillingto hold smaller percentages of their money. Show Answer Correct Answer: B) People hold less money as the opportunity cost of holding money rises. 15. Which of the following best defines a recession? A) A period of significant economic growth characterized by an increase in GDP and decreasing unemployment rates. B) The sustained increase in the general price level of goods and services over time. C) The use of government spending and taxation to influence the overall economy. D) A significant decline in economic activity characterized by less spending, unemployment. Show Answer Correct Answer: D) A significant decline in economic activity characterized by less spending, unemployment. 16. If the Price of the Market Basket in 2009 is $ 40 and the Price of the Market Basket in the base year is $ 80, what is the CPI for 2009? A) .5. B) 50. C) 120. D) 200. Show Answer Correct Answer: B) 50. 17. Constant A) Resources are of equal quality and equally suited for the production of both commodities. B) The quantity of a good or service that consumers are willing and able to buy. C) A curve that shows the relationship between the price of a product and the quantity of the product demanded. D) The study of how society manages its scarce resources. Show Answer Correct Answer: A) Resources are of equal quality and equally suited for the production of both commodities. 18. This includes 80, 000 items that are sorted into 200 categories and 8 major groups (housing/food/energy) and helps determine inflation. A) CPI Market Basket. B) Inflation calculator. C) Bureau of Labor and Statistics. D) Interest Rate. Show Answer Correct Answer: A) CPI Market Basket. 19. The Rp. 100, 000 in our wallet is..... A) Fiat money. B) Commodity money. C) Backed by gold. D) Vespa money. Show Answer Correct Answer: A) Fiat money. 20. A tax applied by the government on the sale of goods and services A) Direct tax. B) Sales tax. C) Indirect tax. D) None of above. Show Answer Correct Answer: B) Sales tax. ← 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