This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Macroeconomics – Quiz 136 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 136 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. A central bank will most likely allow the economy to self-correct in periods of: A) High inflation, fast economic growth, and low unemployment. B) Low inflation, slow economic growth, and high unemployment. C) High inflation, slow economic growth, and high unemployment. D) None of above. Show Answer Correct Answer: C) High inflation, slow economic growth, and high unemployment. 2. The U.S. federal income tax is an example of a A) Progressive tax. B) Proportional tax. C) Regressive tax. D) Value-added tax. Show Answer Correct Answer: A) Progressive tax. 3. An economy's gross domestic product is ..... A) Total income and total spending. B) Total spending as a percent of total income. C) The excess of income over spending. D) The excess of spending over income. Show Answer Correct Answer: A) Total income and total spending. 4. Money facilitates the buying and selling of goods and services. What function money is serving here? A) Medium of exchange. B) Store of value. C) Measure of value. D) Unit of account. Show Answer Correct Answer: A) Medium of exchange. 5. Where are factors of production (land, labor, etc) exchanged in the circular flow model? A) Factor Market. B) Product Market. C) Firms. D) Individuals. Show Answer Correct Answer: A) Factor Market. 6. Expansionary fiscal policy would most likely be used during ..... A) Recessions. B) Times where economy is operating at full employment. C) Periods of sustained, demand pull inflation. D) Periods of large positive output gaps in GDP. Show Answer Correct Answer: A) Recessions. 7. What does GDP measure? A) The strength of the economy (economic growth). B) The weaknesses of the economy. C) The gross dumb possums who live under the deck. D) The giant, demanding punk who won't stop picking on my little brother. Show Answer Correct Answer: A) The strength of the economy (economic growth). 8. Understanding how mandatory health insurance will affect small business A) Macroeconomics. B) Microeconomic. Show Answer Correct Answer: B) Microeconomic. 9. What is included in the calculation of GDP? A) The value of all final goods and services produced within a country's borders, excluding intermediate goods and transfer payments. B) The value of all goods and services produced within a country's borders, including intermediate goods and transfer payments. C) The value of all final goods and services produced outside of a country's borders, including intermediate goods and transfer payments. D) None of above. Show Answer Correct Answer: A) The value of all final goods and services produced within a country's borders, excluding intermediate goods and transfer payments. 10. When individuals lose jobs due to a decline in the economy during an economic recession. A) Structural Unemployment. B) Cyclical Unemployment. C) Frictional Unemployment. D) Seasonal Unemployment. Show Answer Correct Answer: B) Cyclical Unemployment. 11. Suppose an economy produces two goods, food and machines, and that it always operates on its PP curve. Last year, it produced 50 units of food and 30 machines. This year it experienced a technological advance in its machine-making industry. As a result, this year the society wants to produce 55 units of food and 30 machines. Which of the following statements is true? A) Because the technological advance occurred in the machine-making industry, it will not be possible to increase food production without reducing machine production below 30. B) Because the technological advance occurred in the machine-making industry, it will not be possible to increase food production without reducing machine production below 30. C) In order to increase food production in these circumstances without reducing machine production, the economy must reduce inefficiencies. D) The technological advance reduced the amount of resources needed to produce 30 machines. Resources thus freed up could be used to produce more food. Show Answer Correct Answer: D) The technological advance reduced the amount of resources needed to produce 30 machines. Resources thus freed up could be used to produce more food. 12. The central bank has increased reserve requirements. What effect will this have on nominal interest rates? A) Increase. B) Decrease. C) Interest rates will not change. D) We cannot predict with this information. Show Answer Correct Answer: A) Increase. 13. Deflation is referred to A) A decrease in the prices of goods and services in an economy. B) An increase in the prices of goods and services in an economy. C) A decrease in the supply of goods and services in an economy. D) An increase in the quantity of goods and services in an economy. Show Answer Correct Answer: A) A decrease in the prices of goods and services in an economy. 14. Which of the following is an example of a normative, as opposed to positive, a statement? A) The price of gasoline came down sharply during the second half of 2006. B) If the government where to set a maximum legal price on gasoline, then there would be a shortage of gasoline. C) Income taxes should be reduced. D) The federal government obtained much of its revenue from income taxes. E) Negative externalities are a cause of market failure. Show Answer Correct Answer: C) Income taxes should be reduced. 15. Which account that included the imported and export goods and services? A) Balance of current account. B) Balance of capital and financial account. C) Overall balance. D) None of above. Show Answer Correct Answer: A) Balance of current account. 16. Growth rate in quantity of money available determines A) The consumers. B) Interest rate. C) Inflation rate. D) None of them. Show Answer Correct Answer: C) Inflation rate. 17. What is not a criterion used to measure welfare in HDI? A) Education. B) Opportunity. C) Standard of living. D) Health and life expectancy. Show Answer Correct Answer: B) Opportunity. 18. A tax where all people pay the same percentage of their income or wealth. Property taxes are an example of this. A) Fiscal policy. B) Monetary policy. C) Progressive tax. D) Proportional tax. E) Regressive tax. Show Answer Correct Answer: D) Proportional tax. 19. According to monetarist theory, what happens if the money supply increases more rapidly than real output? A) The velocity of money increases. B) Deflation occurs. C) The velocity of money decreases. D) Inflation occurs. E) Nominal output decreases. Show Answer Correct Answer: D) Inflation occurs. 20. There are 3 types of unemployement; Cyclical, Frictional and Structural. A) True. B) False. Show Answer Correct Answer: A) True. ← 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