This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Macroeconomics – Quiz 137 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 137 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Unemployment caused by an imbalance between the skills of workers and the requirements of employers. These workers need more education and training to be employable. A) Employed. B) Structural unemployment. C) Frictional unemployment. D) Cyclical unemployment. Show Answer Correct Answer: B) Structural unemployment. 2. The equilibrium condition of product market is A) Saving > investment. B) Saving = investment. C) Saving + tax > investment + government expenditure. D) Saving < investment. Show Answer Correct Answer: B) Saving = investment. 3. What does Net Exports indicate in the context of macroeconomics? A) Total exports minus total imports. B) Total imports minus total exports. C) Total government spending on exports. D) Total consumer spending on imports. Show Answer Correct Answer: A) Total exports minus total imports. 4. The costs of changing prices. A) Money illusion. B) Shoeleather costs. C) Opportunity costs. D) Menu Costs. Show Answer Correct Answer: D) Menu Costs. 5. If the price rate doubles A) The quantity demanded of money falls by half. B) The value of money has been reduced by half. C) Nominal income is unaffected. D) Real income doubles. Show Answer Correct Answer: B) The value of money has been reduced by half. 6. Which of the following does the US spend the most money on? A) Defense. B) Education. C) International affairs. D) Health care. Show Answer Correct Answer: A) Defense. 7. The consumer price index was 124 in year 2000 and 130.7 in year 2001. The rate of inflation in the year 2001 was A) 3.2%. B) 6.7%. C) 5.4%. D) 13.6%. Show Answer Correct Answer: C) 5.4%. 8. Federal Income tax is a ..... tax A) Proportional. B) Flat. C) Regressive. D) Progressive. Show Answer Correct Answer: D) Progressive. 9. Savings accounts and other similar time deposits that cannot be used as a medium of exchange but can be converted into cash relatively easily. money is what can be immediately used for transactions. A) Wages. B) Currency. C) Near Money. D) Money. Show Answer Correct Answer: C) Near Money. 10. The idea that countries should only reduce their own tariffs if other countries reduce theirs is an argument put forward by those who favour: A) Free trade. B) Strategic trade. C) Fair trade. D) Closed economies. Show Answer Correct Answer: C) Fair trade. 11. Unchecked breeding of man causes population to grow by geometrical progression while the food supply cannot grow so rapidly only an arithmetical rate of increase. A) Laissez Faire theory. B) Malthusian Theory. C) Two factor theory. D) Theory of money. Show Answer Correct Answer: B) Malthusian Theory. 12. High rates of unemployment: A) Indicate that society is not using a large portion of the talent and skills of its people. B) Are associated with higher price levels. C) Always correspond to a decrease in nominal GDP. D) Do not affect an economy's output of goods and services. Show Answer Correct Answer: A) Indicate that society is not using a large portion of the talent and skills of its people. 13. Any point inside a production possibilities curve is A) Better than points on the production possibilities curve. B) Allocatively efficient but technologically inefficient. C) Associated with inefficient use or unemployment of some resources. D) Associated with movements along the production possibilities curve. E) Associated with constant opportunity costs. Show Answer Correct Answer: C) Associated with inefficient use or unemployment of some resources. 14. Which of the following is an example of globalization? A) Toyota cars being sold in the US. B) A KFC location in Tennessee. Show Answer Correct Answer: A) Toyota cars being sold in the US. 15. Which one of the following is NOT a sector in the European Union's national accounting conventions? A) The households sector. B) The government sector. C) The financial corporations sector. D) The nonfinancial corporations sector. E) The service sector. Show Answer Correct Answer: E) The service sector. 16. People will want to hold less money if the price level A) Or the interest rate increases. B) Or the interest rate decreases. C) Increases or the interest rate decreases. D) Decreases or the interest rate increases. Show Answer Correct Answer: D) Decreases or the interest rate increases. 17. If the Federal Reserve System wanted to stimulate the U.S. economy and reduce unemployment, it would A) Cause interest rates to decrease because low interest rates encourage businessgrowth and expansion. B) Cause interest rates to rise because high interest rates encourage business growthand expansion. C) Increase the discount rate it charges banks, which would increase the money supply. D) Increase consumer spending by reducing the money supply. Show Answer Correct Answer: A) Cause interest rates to decrease because low interest rates encourage businessgrowth and expansion. 18. A tax for which the percentage of income paid in taxes decreases as income increases is? A) Proportaional tax. B) Sales tax. C) Regressive tax. D) Progressive tax. Show Answer Correct Answer: C) Regressive tax. 19. The free market can't produce everything we need as a society, so the government still has a role to play (like providing police officers and bridges.) A) True. B) False. Show Answer Correct Answer: A) True. 20. Prior to the pandemic, we had over 5, 000 open jobs in Broome County but not the skilled people to fill them. This is an example of A) Frictional unemployment. B) Seasonal unemployment. C) Cyclical unemployment. D) Structural unemployment. Show Answer Correct Answer: D) Structural 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