This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Macroeconomics – Quiz 125 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 125 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. "Crowding out" refers to ..... A) Reduced exports due to rising exchange rates. B) Supply-side tax cuts reducing entitlement spending. C) Reduced consumption due to increases in marginal tax rates. D) A reduction in the availability of private capital. E) None of these. Show Answer Correct Answer: D) A reduction in the availability of private capital. 2. What is the minimum amount of money that banks are required to leave in reserve? A) Excess Reserves. B) Discount Rates. C) Open Market Operations. D) Required Reserves. Show Answer Correct Answer: D) Required Reserves. 3. In 2020 the U.S. exported 93 million dollars worth of goods and service to Liberia. In 2020 the U.S. imported 45 million dollars worth of goods and services from Liberia. The U.S. has a trade ..... with Liberia. A) Surplus. B) Deficit. Show Answer Correct Answer: A) Surplus. 4. Which means prices are getting lower over time? A) Inflation. B) Deflation. C) Incredible. D) Nirvana. Show Answer Correct Answer: B) Deflation. 5. When there is a decrease in the price of DVD players what does change? A) The quantity supplied does not change. B) The quantity demanded does not change. C) We can not determine. D) The quantity supplied changes. Show Answer Correct Answer: D) The quantity supplied changes. 6. The quantity of money M2 is greater than the quantity of money M1. A) True. B) Lie. Show Answer Correct Answer: A) True. 7. Goods purchased for final purpose are ..... A) For Satisfaction of wants. B) For investment in firm. C) Both a and b. D) None of the above. Show Answer Correct Answer: C) Both a and b. 8. High inflation will affect..... the equity market. A) Positif. B) Constant. C) Negative. D) All three are correct. Show Answer Correct Answer: C) Negative. 9. In the consumption funciton, C= a+bY, A) 'a' varies with change in income. B) B = $\frac{\Delta\text{C}}{\Delta Y}\ $. C) 'C' is independent of Y. D) 'a' and 'b' varies with income while Y is constant. Show Answer Correct Answer: B) B = $\frac{\Delta\text{C}}{\Delta Y}\ $. 10. The percentage of a nations labor force that is unemployed. A) Gross Domestic Product. B) Inflation. C) Unemployment. D) Consumer Price Index. Show Answer Correct Answer: C) Unemployment. 11. Which of these terms are used interchangeably A) "goods and services" and "inputs". B) "goods and services" and "factors of production". C) "inputs" and "factors of production". D) "land, labor, and capital" and "goods and services". E) "inputs" and "goods and services". Show Answer Correct Answer: C) "inputs" and "factors of production". 12. When money is used to determine the worth of a product, it is being used as ..... A) Store of value. B) Unit of value. C) Medium of exchange. D) Consumer price index. Show Answer Correct Answer: B) Unit of value. 13. What is Real GDP? A) The value of current gross domestic product adjusted for inflation. B) The rate at which the number of unemployed people changes. C) The total value of goods produced and services provided in a country during one year. D) Changes in the value of a basket of goods and services purchased by the average urban consumer. Show Answer Correct Answer: A) The value of current gross domestic product adjusted for inflation. 14. The total income households have left after receiving government transfers and paying taxes is ..... A) Disposable Income. B) Private Savings. C) Gross Domestic Product. D) Inventories. Show Answer Correct Answer: A) Disposable Income. 15. The situation where quantity demand is equal to the quantity supplied; the combination of price and quantity where there is no economic pressure from surpluses or shortages that would cause the price or quantity to change A) Equilibrium. B) Price Ceiling. C) Price. D) Surplus. Show Answer Correct Answer: A) Equilibrium. 16. What is the difference between absolute advantage and comparative advantage? A) That the absolute advantage takes into account which sector is more intensive in factors of production and which product is intensive in that factor. B) That the comparative advantage takes into account which sector is more intensive in production factors and which product is intensive in that factor. C) That comparative advantage only takes into account who produces each good best, independent of the capabilities or efficiencies between countries. D) That the absolute advantage only takes into account who produces each good best, independent of the capacities or efficiencies between the countries. E) That absolute advantage takes into account who produces each good best, as well as the capabilities or efficiencies between countries. Show Answer Correct Answer: D) That the absolute advantage only takes into account who produces each good best, independent of the capacities or efficiencies between the countries. 17. An increase in labor productivity would most likely cause real gross domestic product and the price level to change in which of the following ways A) Increase Real GDP; Increase Price Level. B) Increase Real GDP; Decrease Price Level. C) Decrease Real GDP; Increase Price Level. D) Decrease Real GDP; Decrease Price Level. Show Answer Correct Answer: B) Increase Real GDP; Decrease Price Level. 18. What is the monetary policy? A) Reduced price. B) The changing of interest rate and influencing money supply. C) When inflation occurs. D) None of above. Show Answer Correct Answer: B) The changing of interest rate and influencing money supply. 19. This classification of money includes coins, paper money, checkable deposits. A) M1. B) M2. C) M3. D) None of above. Show Answer Correct Answer: A) M1. 20. Unemployment that rises during economic downturns and falls when the economy improves. A) Seasonal Unemployment. B) Structural Unemployment. C) Frictional Unemployment. D) Cyclical Unemployment. Show Answer Correct Answer: D) Cyclical Unemployment. ← 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