This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Macroeconomics – Quiz 133 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 133 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of the following is NOT a determinant of supply? A) Change in cost of production. B) Technology. C) Change in number of consumers. D) Government regulations. Show Answer Correct Answer: C) Change in number of consumers. 2. The amount of money that the public wants to hold in the form of cash will A) Be unaffected by any change in interest rates or the price level. B) Increase if interest rates increase. C) Decrease if interest rates increase. D) Increase if the price level decreases. E) Decrease if the price level remains constant. Show Answer Correct Answer: C) Decrease if interest rates increase. 3. The part of economics concerned with large scale or general economic factors, such as interest rates, the Federal Reserve conducing monetary policy, the Federal Government conducting fiscal policy, the unemployment rate, and GDP per capita? A) Microeconomics. B) Macroeconomics. Show Answer Correct Answer: B) Macroeconomics. 4. When the money supply is increased, which is MOST likely to happen? A) The price level will not be affected. B) Each dollar will be able to buy more goods. C) The price level will decrease. D) The price level will increase. Show Answer Correct Answer: D) The price level will increase. 5. In the formula C + I + X + X-M, what does "M" represent? A) Money supply. B) Marginal propensity to consume. C) Imports. D) Monetary policy. Show Answer Correct Answer: C) Imports. 6. Goods that are often use together so that consumption of one good tends to enhance consumption of the other Ex:Cereal and Milk, DVDs and DVD player, Golfing and Golf Balls A) Inferior Good. B) Complement Good. C) Substitute Good. D) Normal Good. Show Answer Correct Answer: B) Complement Good. 7. Which of the following is not concerned with Macroeconomics? A) National Income Accounting. B) Inflation. C) International Trade. D) Individual Firm. Show Answer Correct Answer: D) Individual Firm. 8. Which of the following is NOT part of GDP: A) A new car that is sold. B) A teacher working in the classroom. C) A used TV on Craigslist. D) No answer. Show Answer Correct Answer: C) A used TV on Craigslist. 9. Suppose, the reserve ratio equals rr=4%. What is the money multiplier? A) 104%. B) 20. C) 25. D) 4. Show Answer Correct Answer: C) 25. 10. Which combination of fiscal policies would be considered the most expansionary? A) Increase in government spending and taxes. B) Decrease in government spending and taxes. C) Decrease in government spending and an increase in taxes. D) Increase in government spending and a decrease in taxes. Show Answer Correct Answer: D) Increase in government spending and a decrease in taxes. 11. Which one is true about output function in Solow Model? A) Y = F(K, AL). B) Y = f(K$\alpha$, AL$\beta$). C) Y = f(K, AL). D) Y = f(k$\alpha$). Show Answer Correct Answer: A) Y = F(K, AL). 12. Is Tennessine a real element? A) No. B) Yes. C) I have no clue. D) None of above. Show Answer Correct Answer: B) Yes. 13. As GDP rises: A) Unemployment rises. B) Inflation rises. C) Companies produce less. D) Companies lower their prices to encourage spending. Show Answer Correct Answer: D) Companies lower their prices to encourage spending. 14. Foreign cars are subject to an additional tax in order to make them more expensive than American made cars. This tax is called a ..... A) Tariff. B) Embargo. C) Trade Agreement. D) None of the above. Show Answer Correct Answer: A) Tariff. 15. Which graph trades off unemployment with inflation? A) Production Possibilities. B) Money Market. C) Loanable Funds. D) Phillips Curve. Show Answer Correct Answer: D) Phillips Curve. 16. A balance sheet ..... A) Includes all liabilities on the right-hand side. B) Is a double-entry accounting device. C) Includes all assets on the left-hand side. D) Both (a) and (c) are correct, but (b) is incorrect. E) All three of (a), (b), and (c) are accurate statements. Show Answer Correct Answer: E) All three of (a), (b), and (c) are accurate statements. 17. The value of the multiplier will increase if A) Autonomous investment increases. B) Induced investment increases. C) The MPC decreases. D) The MPS decreases. Show Answer Correct Answer: D) The MPS decreases. 18. One reason aggregate demand slopes downward is the wealth effect:A decrease in the price level increases the value of money holdings and consumer spending rises A) True. B) False. Show Answer Correct Answer: B) False. 19. How is a corporation different from a sole proprietorship? A) Corporations are owned by only one person. B) Corporations can sell stock to raise money for the business. C) Sole proprietorships have limited liability for the owners. D) Sole proprietorships require a legal charter to start the business. Show Answer Correct Answer: B) Corporations can sell stock to raise money for the business. 20. In 2017 Sabrina earned an annual salary of $ 100, 000 as an engineer. In 2018, her income rose to $ 105, 000. Theinflation rate in 2018 was 2%. How did Sabrina's nominal income and real income change in 2018 compared to2017? A) Nominal income decreased and real income decreased. B) Nominal income decreased and real income did not change. C) Nominal income increased and real income decreased. D) Nominal income increased and real income did not change. E) Nominal income increased and real income increased. Show Answer Correct Answer: E) Nominal income increased and real income increased. ← 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