This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Macroeconomics – Quiz 135 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 135 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. In a recession, does the actual budget surplus or deficit fall above or below the standardized employment budget? A) Surplus. B) Standardized. C) Above. D) Below . Show Answer Correct Answer: D) Below . 2. A situation in which the government spends more than it takes in is? A) Deficit. B) Surplus. C) Kick back. D) Overload. Show Answer Correct Answer: A) Deficit. 3. Land includes ..... A) The "gifts of nature" or natural resources not created by human effort. B) The tools, equipment, and factories used in production of goods and services. C) People with all their efforts and abilities. D) Individuals who start a new business or bring a product to market. Show Answer Correct Answer: A) The "gifts of nature" or natural resources not created by human effort. 4. Which of the following is the best definition of opportunity costs? A) The amount of one good that must be given up in order to produce one more unit of another good. B) The amount of an input that must be used in order to produce one more unit of a good. C) The price of a good that must be charged in order for a merchant to sell one more unit. D) None of the above. Show Answer Correct Answer: A) The amount of one good that must be given up in order to produce one more unit of another good. 5. Which one is considered to be business fixed investment? A) Build a new house. B) Increase stock in warehouse. C) Build a new factory plant. D) Buy a sharia mutual fund. Show Answer Correct Answer: C) Build a new factory plant. 6. Does the sale of a 2018 automobile count toward the gross domestic product for the year 2019? A) Yes, of course. B) No, because the production did not occur that year. C) Yes, because all sales count toward GDP. D) No, because the sale would be considered a non-market activity. Show Answer Correct Answer: B) No, because the production did not occur that year. 7. John is a skilled blacksmith, but he is unable to find a job because the demand for blacksmiths has decreased due to technological advancements. What type of unemployment is John experiencing? A) Seasonal Unemployment. B) Structural Unemployment. C) Frictional Unemployment. D) Cyclical Unemployment. Show Answer Correct Answer: B) Structural Unemployment. 8. A decrease in the demand for money would result from: A) A decrease in the supply of money. B) An increase in nominal GDP. C) A decrease in the price level. D) An increase in real GDP. E) An increase in income. Show Answer Correct Answer: C) A decrease in the price level. 9. If the Australian dollar depreciates, the effect of this is likely to be: A) Exports will be more expensive. B) Imports will be cheaper. C) Import-competing domestic goods will be relatively expensive. D) 'imported inflation' may become a problem. Show Answer Correct Answer: D) 'imported inflation' may become a problem. 10. The Federal Reserve comes to the conclusion that more money must be pumped into the economy in order to pull the country out of a recession. Which actions could the "Fed" take that would most likely result in an increase the money supply? A) Raise the reserve requirements; raise the discount rate; and sell securities (bonds). B) Lower the reserve requirements; lower the discount rate; and buy securities (bonds). Show Answer Correct Answer: B) Lower the reserve requirements; lower the discount rate; and buy securities (bonds). 11. Britain:20 cars and 6 trucksUS:50 cars and 20 trucks Who has the comparative advantage in trucks? A) Britain. B) US. Show Answer Correct Answer: B) US. 12. THE MONEY THAT HOUSEHOLD SPEND WOULD BE BEST REPRESENTED FROM ..... to ..... A) Household to Factor Market. B) Household to Product Market. C) Household to Firms. D) Product Market to Household. Show Answer Correct Answer: B) Household to Product Market. 13. If the Fed wants to increase the money supply, it can ..... A) Reduce income tax rates. B) Sell bonds in open-market operations. C) Raise income tax rates. D) Buy bonds in open-market operations. Show Answer Correct Answer: D) Buy bonds in open-market operations. 14. GDP per capita is: A) The population divided by total GDP. B) Investment as a percentage of GDP. C) Total GDP divided by total population. D) The same as GDP per worker. Show Answer Correct Answer: C) Total GDP divided by total population. 15. One of the primary goals of stabilizing the economy is to A) Increase income levels. B) Maintain low unemployment. C) Raise the standard of living. D) Increase profits and spending. Show Answer Correct Answer: D) Increase profits and spending. 16. How do workers typically pay into the Social Security program in the United States? A) Through income tax. B) By mailing a check to the Social Security Administration. C) Through payroll withholding at their job. D) By paying a lump sum each year. Show Answer Correct Answer: C) Through payroll withholding at their job. 17. According to the Circular Flow chart, which of the following statements is true? A) Government receives its revenues only from the factor market. B) Government receives its revenues only from the product market. C) Government receives its revenues from transfer payments. D) Government receives its revenues from household and business taxes. Show Answer Correct Answer: D) Government receives its revenues from household and business taxes. 18. Net EXPORT is X-M. What is X? A) IMPORT. B) EXPORT. Show Answer Correct Answer: B) EXPORT. 19. A college student, who is working part-time will fall under the following employment category. A) Employed. B) Not in the Labor Force. C) Unemployed. D) Full-Time Student. Show Answer Correct Answer: A) Employed. 20. Any action taken by the Federal Reserve that either speeds up or slows down the economy is referred to as ..... ? A) Monetary Policy. B) Fiat Currency. C) Currency Policy. D) Insider Trading. Show Answer Correct Answer: A) Monetary Policy. ← 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