This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Macroeconomics – Quiz 118 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 118 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The real salary is the salary level including all additional subsidies. A) True. B) Lie. Show Answer Correct Answer: B) Lie. 2. The price where quantity demand is equal to quantity supplied A) Excess Supply. B) Excess Demand. C) Equilibrium Price. D) Equilibrium Quantity. Show Answer Correct Answer: C) Equilibrium Price. 3. When AD curve shift to the right, what happen to LM curve? A) LM curve shift to the right. B) LM curve shift to the left. C) LM curve unchanged. D) The change in AD curve has no effect to the changes of LM curve. Show Answer Correct Answer: B) LM curve shift to the left. 4. An increase in the number of consumers can cause A) The demand curve to shift left. B) The demand curve to shift right. C) The demand curve to shift up. D) Diminishing returns. Show Answer Correct Answer: B) The demand curve to shift right. 5. It involves publicly announcing an inflation forecast which the BSP promises to achieve. A) Monetary policy. B) Inflation Target. C) Price Stability. D) Financial Stability. Show Answer Correct Answer: B) Inflation Target. 6. Which of the following represents a withdrawal from the circular flow of income? A) Private funding for a national arts centre. B) The extension, by the government, of the existing highway network. C) The commissioning of a domestic firm of consultant engineers by a foreign oil company to investigate suspected structural defects in some pipelines. D) The purchase by a domestic department store of designer clothes produced abroad. Show Answer Correct Answer: D) The purchase by a domestic department store of designer clothes produced abroad. 7. Gross National Product minus Net National Product is called ..... A) Net National Product. B) Gross Domestic Product. C) Indirect Tax. D) Depreciation. Show Answer Correct Answer: D) Depreciation. 8. The long run Philips curve is also known as the A) Real output rate. B) Natural rate of inflation. C) Natural unemployment rate. D) Real interest rate. Show Answer Correct Answer: C) Natural unemployment rate. 9. What is excluded from determining GDP? A) Non consumer goods. B) Used goods. C) Black market sales. D) All the above. Show Answer Correct Answer: D) All the above. 10. They provide the factors of production specifically land, labor, and capital to be used in the production process. A) HOUSEHOLDS. B) FIRMS. C) GOVERNMENT. D) BANKS. E) INTERNATIONAL TRADE. Show Answer Correct Answer: A) HOUSEHOLDS. 11. The value of the final goods and services produced in a given year expressed in terms of the prices in a reference base year. A) Real GDP. B) Gross Domestic Product. C) Business Cycle. D) Nominal GDP. Show Answer Correct Answer: A) Real GDP. 12. Refer to Table 1 below. The value for national income in billions of dollars is Table 1Table 1:Compensation of employees 34Corporate Profit 67Proprietor's Income 10Net Interest 54Equipment 12Rental Income 34 Depreciation 10Indirect taxes 66Direct taxes 12Subsidies 70Payments of Factor income to the rest of the world 8Receipts of Factor income from the rest of the world 5 A) 195. B) 207. C) 219. D) 222. Show Answer Correct Answer: A) 195. 13. If the government REDUCES taxes on CONSUMERS what will happen? A) AS will decrease. B) AS will increase. C) AD will decrease. D) AD will increase. Show Answer Correct Answer: D) AD will increase. 14. Which of the following is a monetary tool? A) Government Spending. B) Discount Rate. C) Taxes. D) None of above. Show Answer Correct Answer: B) Discount Rate. 15. IRS stands for ..... A) Important Revenue Service. B) Internal Reports System. C) Internal Revenue Service. D) International Reserve Service. Show Answer Correct Answer: C) Internal Revenue Service. 16. Which one the following would be regarded as a supply-side shock for the UK economy? A) An economic downturn in the US economy affecting UK exports. B) A rise in interest rates discouraging borrowing. C) Rising oil and gas prices increasing the costs of UK firms. D) A rise in tax rates imposed on household incomes. Show Answer Correct Answer: C) Rising oil and gas prices increasing the costs of UK firms. 17. Individuals are unemployed due to a lack in skills that modern industries need, change in technology. A) Cyclical Unemployment. B) Frictional Unemployment. C) Structural Unemployment. D) Seasonal Unemployment. Show Answer Correct Answer: C) Structural Unemployment. 18. It is the list all final goods and services sold within an economy for a period of time. A) Gross Domestic Product. B) Gross National Product. C) Consumer Price Index. D) Market Basket of Goods. Show Answer Correct Answer: D) Market Basket of Goods. 19. What is the value of the money multiplier and the total value at the end with the following data? Initial deposit 1500 mm Allowance 20% A) Money multiplier is 7.5 mm and the value at the end is 5. B) Money multiplier is 5 and the value at the end is 7.5 mm. C) Money multiplier is 0.2 and the value at the end is 300 mm. D) Money multiplier is 7.5 and the value at the end is 5 mm. Show Answer Correct Answer: B) Money multiplier is 5 and the value at the end is 7.5 mm. 20. Capitalism can be defined as ..... A) Is an economic system in which private individuals or businesses own capital goods. The production of goods and services is based on supply and demand. B) Is an economic system in which private individuals or businesses own capital goods. The production of goods and services is based on self interest. Show Answer Correct Answer: A) Is an economic system in which private individuals or businesses own capital goods. The production of goods and services is based on supply and demand. ← 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