This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Macroeconomics – Quiz 122 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 122 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of the following is under the scope of macroeconomics? A) Determination of GDP of the country. B) Determination of employment and unemployment rates. C) Consideration of price level fluctuations. D) All of the above. Show Answer Correct Answer: D) All of the above. 2. The way to calculate disposable personal income is A) Personal income added to personal income taxes. B) Personal income divided by personal income taxes. C) Personal income minus personal income taxes. D) Personal income multiplied by personal income taxes. Show Answer Correct Answer: C) Personal income minus personal income taxes. 3. In 2016 the nominal GDP for Country X was $ 330 billion and the GDP deflator was 110. The real GDP for 2016 was A) 110 billion. B) 220 billion. C) 300 billion. D) 330 billion. E) 440 billion. Show Answer Correct Answer: C) 300 billion. 4. Explaining the impact of an unexpected decrease in the price level, is the purpose of? A) The Money Hypothesis. B) Pigou effect. C) Debt Deflation Theory. D) The Spending Hypothesis. Show Answer Correct Answer: C) Debt Deflation Theory. 5. Which of the following is a focus of the study of macroeconomics? A) Inflation. B) Average cost. C) Individual demand. D) Factor market. Show Answer Correct Answer: A) Inflation. 6. An increase in price level in the U.S. relative it its trading partners will cause the U.S. dollar to ..... on the foreign exchange market, and Americans will ..... the purchase of foreign made goods. A) Appreciate, increase. B) Appreciate, decrease. C) Depreciate, decrease. D) Depreciate, increase. Show Answer Correct Answer: D) Depreciate, increase. 7. Equal to the sum of the employed + unemployed A) Underemployed workers. B) CPI. C) Market Basket. D) Labor Force. Show Answer Correct Answer: D) Labor Force. 8. Inflation means A) The rising of prices over time. B) The decreasing of prices over time. Show Answer Correct Answer: A) The rising of prices over time. 9. According to the text, what is the difference between a closed economy and an open economy? A) A closed economy has no nonprofit institutions while an open economy includes nonprofit institutions. B) A closed economy has no government sector while an open economy includes a government sector. C) A closed economy has no household sector while an open economy includes a household sector. D) A closed economy has no foreign sector while an open economy includes a foreign sector. E) A closed economy has no inventories while an open economy includes inventories. Show Answer Correct Answer: D) A closed economy has no foreign sector while an open economy includes a foreign sector. 10. Point "A" represents which phase of the business cycle? A) Contraction. B) Expansion. C) Peak. D) Trough. E) Recession. Show Answer Correct Answer: B) Expansion. 11. "The U.S. Federal Reserve is almost certain to hike interest rates Wednesday to the highest level in a decade:1.5 to 1.75 percent. " A) Fiscal policy. B) Monetary policy. Show Answer Correct Answer: B) Monetary policy. 12. A partnership agreement: A) Helps prevent disagreements. B) Encourages disagreements. C) Is a waste of time. D) None of the above. Show Answer Correct Answer: A) Helps prevent disagreements. 13. Unemployment can be created when consumption and demand lessen. A) True. B) False. Show Answer Correct Answer: A) True. 14. What is the primary purpose of monetary policy? A) To regulate international trade. B) To control inflation. C) To set tax rates. D) To build infrastructure. Show Answer Correct Answer: B) To control inflation. 15. Monetary policy, like fiscal policy is subject to A) Lag times, but those times are greater. B) Lag times, but those times are smaller. C) The will of the President of the United States. D) The will of the US Congress. Show Answer Correct Answer: B) Lag times, but those times are smaller. 16. In the circular flow model, which way does money flow? A) From firms to product markets. B) From firms to resource markets. C) From households to resource markets. D) From product markets to households. Show Answer Correct Answer: B) From firms to resource markets. 17. What is the fundamental problem of economics? A) How to keep consumers out of debt?. B) How to fulfill our unlimited wants and needs with limited resources?. C) How to figure out the way to make the most money?. D) How do we ensure all people get a college education?. Show Answer Correct Answer: B) How to fulfill our unlimited wants and needs with limited resources?. 18. How do you show that Oxygen has a 2negative charge A) O-2. B) Ox-2. C) Ox+2. D) O=1. Show Answer Correct Answer: A) O-2. 19. Examples of Command Economies A) Ghana, Ethiopia, Cameroon, Kenya, and Liberia. B) Hong Kong, Singapore, New Zealand, Taiwan, and United States. C) China, North Korea, Cuba, Russia, and Vietnam. D) Mexico, Brazil, Argentina, Peru, and Ecuador. Show Answer Correct Answer: C) China, North Korea, Cuba, Russia, and Vietnam. 20. 5 main factors that shift the Demand curve: A) MERIT:Market Size (# of consumers), Expectations, Related Prices (complements and substitutes), Income (normal and inferior goods), Tastes. B) TRICE-Technology (can both increase or decrease the curve), Related Prices (substitutes/compliments), Input prices, Competition, Expectations. C) The ability to produce more of a given product using a given amount of resources. D) A property of an efficient market whereby all goods and services are optimally distributed among buyers in an economy. Show Answer Correct Answer: A) MERIT:Market Size (# of consumers), Expectations, Related Prices (complements and substitutes), Income (normal and inferior goods), Tastes. ← 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