This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Macroeconomics – Quiz 120 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 120 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. When the federal government decides to pay senators more than it pays soldiers, it answers the ..... question. A) Why. B) How. C) For whom. D) What. Show Answer Correct Answer: C) For whom. 2. Contracting Monetary Policy happens during a expansion of the economy? A) True. B) False. Show Answer Correct Answer: B) False. 3. The term "factors of production" means: A) Things or skills needed to produce goods or services. B) How we spend our money. C) The resources of the government. D) How society creates jobs. Show Answer Correct Answer: A) Things or skills needed to produce goods or services. 4. If the United States is experiencing inflation, the Fed will likely A) Increase the supply of money in the economy. B) Decrease the supply of money in the economy. Show Answer Correct Answer: B) Decrease the supply of money in the economy. 5. Which policy measure would be classified as a fiscal policy instrument? A) A cut in the interest rate of interest. B) An increase in the money supply. C) The imposition of a quota. D) A rise in government spending on defence. Show Answer Correct Answer: D) A rise in government spending on defence. 6. Money that Congress is MANDATED or required by existing law to spend on certain programs or to use for interest payment on the national debt. A) Mandatory spending. B) Discretionary spending. C) Entitlements. D) Tariffs. Show Answer Correct Answer: A) Mandatory spending. 7. Which one of the following is a factor that positively influences aggregate supply? A) A fall in business confidence. B) An increase in electricity prices. C) A reduction of variable interest rates charged to small businesses. D) A decrease in the Australian dollar relative to the currencies of Australia's major trading partners. Show Answer Correct Answer: C) A reduction of variable interest rates charged to small businesses. 8. Which type of unemployment is a mismatch of skills and jobs? A) Frictional. B) Seasonal. C) Cyclical. D) Structural. E) Full. Show Answer Correct Answer: D) Structural. 9. The study of the economy as a whole and how major sectors of the economy interact. A) Incentives. B) Inflation. C) Unemployed. D) Macroeconomics. Show Answer Correct Answer: D) Macroeconomics. 10. Money owed to a person or a business A) Debit. B) Credit. C) Debt. D) Late Fee. Show Answer Correct Answer: C) Debt. 11. Value of total output corrected for any changes in prices A) Nominal GDP. B) Real GDP. C) Real GNP. D) Nominal GNP. Show Answer Correct Answer: B) Real GDP. 12. If the demand for a good or service decreases, the equilibrium price and quantity are most likely to change in which of the following ways? A) Increase Price; Increase Quantity. B) Decrease Price; Increase Quantity. C) Increase Price; Decrease Quantity. D) Decrease Price; Decrease Quantity. Show Answer Correct Answer: D) Decrease Price; Decrease Quantity. 13. The ..... model is a model of how a ..... market works. A) Supply and Demand; Command. B) Supply and Demand; Competitive. C) Production Possibilities Curve; Command. D) Production Possibilities Curve; Competitive. Show Answer Correct Answer: B) Supply and Demand; Competitive. 14. What is ONE example of PRICE STABILITY? A) Equal pay for equal work. B) Minimum wage. C) Social Security. D) Guard against inflation. Show Answer Correct Answer: D) Guard against inflation. 15. The extra benefit consumers receive from buying a good or service, measured by what the individuals would have been willing to pay minus the amount that they actually paid ( discount price due to excess of product ) A) INFERIOR GOOD. B) EXCESS DEMAND. C) CONSUMER SURPLUS. D) LAW OF DEMAND. Show Answer Correct Answer: C) CONSUMER SURPLUS. 16. The period between the peak and the trough is the ..... ; the period between the trough and the peak is the ..... A) Recession; expansion. B) Expansion; recession. C) Peak; trough. D) Trough; peak. Show Answer Correct Answer: A) Recession; expansion. 17. The problem with high levels of government debt is: A) Government debt does not grow the economy. B) The costs of government debt outweigh the benefits. C) Governments need more tax revenue to pay off the interest bill. D) Governments should never borrow money. Show Answer Correct Answer: C) Governments need more tax revenue to pay off the interest bill. 18. What is the total value of all final goods and services produced within a country in a given time? A) NNP. B) Real GDP. C) Nominal GDP. D) Total GDP. Show Answer Correct Answer: B) Real GDP. 19. What do we call it when we have both high inflation and unemployment at the same time? A) Equilibrium. B) Stagflation. C) CPI. D) GDP deflator. E) Full employment. Show Answer Correct Answer: B) Stagflation. 20. What does Aggregate Demand represent in macroeconomics? A) Total demand for all goods and services in an economy. B) Total demand for goods and services in a specific industry. C) Total supply of goods and services in an economy. D) Total supply of goods and services in a specific industry. Show Answer Correct Answer: A) Total demand for all goods and services in an economy. ← 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