This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Macroeconomics – Quiz 121 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 121 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. If the Fed wanted to increase the money supply, they would A) Buy bonds and securities. B) Raise the discount rate. C) Raise the reserve requirement. D) Lower government spending. Show Answer Correct Answer: A) Buy bonds and securities. 2. The term, "labor" means: A) Work the people do to produce goods and services. B) The natural resources used to produce goods or services. C) Person who organizes the factors of production to produce goods/services; business owners. D) Goods not created for their own use, but to make other goods/services. Show Answer Correct Answer: A) Work the people do to produce goods and services. 3. How many stages are there in the business cycle? A) 1. B) 2. C) 3. D) 4. Show Answer Correct Answer: D) 4. 4. The question of "What goods and services get produced?" most closely relates to which of the following issues? A) The distribution of goods and services in the economy. B) Producing goods and services in the least costly manner. C) Building a missile defense system, or putting a computer in every elementary school classroom. D) Obtaining specialized training to increase one's income. Show Answer Correct Answer: C) Building a missile defense system, or putting a computer in every elementary school classroom. 5. THE CONCEPT OF GREEN GNP IS A) GNP WITH GROWTH. B) GNP WITH DEVLOPMENT. C) GNP WITH SUSTAINBLE DEVLOPMENT. D) BOTH B AND C. Show Answer Correct Answer: C) GNP WITH SUSTAINBLE DEVLOPMENT. 6. Identify the correct determinant of supply:Example:If the cost of electricity used to power an automotive factories falls, the supply of cars in the market increases A) Cost of production/resources. B) Number of sellers. C) Change in expectations. D) Change in technology. Show Answer Correct Answer: A) Cost of production/resources. 7. Economic growth refers to a(n) ..... in the output of goods and services in an economy. The greater the economic growth, the ..... goods citizens and their descendants will have to consume. A) Decrease; less. B) Decrease; more. C) Increase; more. D) Increase; less. Show Answer Correct Answer: C) Increase; more. 8. TRUE or FALSE:The main policy implication of applying the Classical model to the labor market is that the government should create social programs to retrain workers who lose their jobs due to structural unemployment. A) TRUE. B) FALSE. Show Answer Correct Answer: B) FALSE. 9. Wrote the Road to Serfdom, 19442. Nobel Prize in Economics, 1974 A) Friedrich Hayek. B) Karl Marx. C) Milton Friedman. D) Adam Smith. Show Answer Correct Answer: A) Friedrich Hayek. 10. What is inflation and how is it measured? A) Inflation is the rate at which the general level of prices for goods and services is rising and, subsequently, purchasing power is falling. It is measured using various economic indicators such as the Consumer Price Index (CPI) or the Producer Price Index (PPI). B) Inflation is the rate at which the general level of prices for goods and services is rising and, subsequently, purchasing power is rising. It is measured using various economic indicators such as the Consumer Price Index (CPI) or the Producer Price Index (PPI). C) Inflation is the rate at which the general level of prices for goods and services is stable and, subsequently, purchasing power remains constant. It is measured using various economic indicators such as the Consumer Price Index (CPI) or the Producer Price Index (PPI). D) Inflation is the rate at which the general level of prices for goods and services is falling and, subsequently, purchasing power is rising. It is measured using various economic indicators such as the Consumer Price Index (CPI) or the Producer Price Index (PPI). Show Answer Correct Answer: A) Inflation is the rate at which the general level of prices for goods and services is rising and, subsequently, purchasing power is falling. It is measured using various economic indicators such as the Consumer Price Index (CPI) or the Producer Price Index (PPI). 11. Which of the following is the cause of expected obsolescence? A) Natural calamities. B) Change in demand. C) Change in technology. D) Both (b) and (c). Show Answer Correct Answer: D) Both (b) and (c). 12. The wage at which the number of workers needed equals the number of workers available. A) Wages. B) Human Capital. C) Equilibrium Wage. D) Minimum Wage. Show Answer Correct Answer: C) Equilibrium Wage. 13. This type of business is owned by one person. A) Partnership. B) Sole Proprietorship. C) Corporation. D) Franchise. Show Answer Correct Answer: B) Sole Proprietorship. 14. The largest component of Aggregate Demand is A) Government Purchases. B) Net Exports. C) Consumption. D) Investment. Show Answer Correct Answer: C) Consumption. 15. The demand curve for money is downward sloping because A) People want to hold a same amount quantity of money when each dollar buys less. B) People want to hold a smaller quantity of money when each dollar buys less. C) People want to hold a larger quantity of money when each dollar buys less. D) None of them. Show Answer Correct Answer: C) People want to hold a larger quantity of money when each dollar buys less. 16. Corn/TV Sets A 0/6 B 12/5 C 22/4 D 30/3 E 36/2 F 40/1 G 42/0A combination of 12 units of corn and 6 TV sets: A) Illustrates inefficient use of existing resources. B) Could not be produced with the current supply of resources and existing level of technology. C) Is possible only with full employment and full production of existing resources. D) Would represent a point on the PP curve. Show Answer Correct Answer: B) Could not be produced with the current supply of resources and existing level of technology. 17. It is called the primary instrument of development. A) Barter. B) Trade. C) Import. D) Export. Show Answer Correct Answer: B) Trade. 18. Cash that banks must keep in the vault. A) Excess reserves. B) Fiscal policy. C) Required reserves. D) Crowding out effect. Show Answer Correct Answer: C) Required reserves. 19. In the long run, an increase in the money supply ..... prices and ..... real GDP A) Won't change, increase. B) Won't change, decrease. C) Increases, won't change. D) Decreases, won't change. Show Answer Correct Answer: C) Increases, won't change. 20. Which of the following is not a store of value? A) Money. B) Gold. C) Food. D) Gems. Show Answer Correct Answer: C) Food. ← 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