This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Macroeconomics – Quiz 14 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 14 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What term is used to describe the percent of the labor force that does not have a job but is currently looking for one? A) Leading economic indicator. B) Full employment. C) Unemployment rate. D) Workforce. Show Answer Correct Answer: C) Unemployment rate. 2. Bryce was recently laid off from his job on the auto assembly line. The company is making cutbacks due to fears of an oncoming recession. Bryce is experiencing which type of unemployment? A) Cyclical. B) Seasonal. C) Structural. D) Frictional. Show Answer Correct Answer: A) Cyclical. 3. Interest Rate Effect A) "Sticky Wages" prevents wages from falling. The government should deficit spend to close the gap. B) Price levels effect purchasing power which effects spending. C) When U.S. price levels rise, then GDP decreases due to an increase in imports and a decrease in exports. D) Price levels and economy will fix itself. No Government involvement required. E) When price levels increase, lenders need to charge higher interest rates which decreases consumer and business investment spending. Show Answer Correct Answer: E) When price levels increase, lenders need to charge higher interest rates which decreases consumer and business investment spending. 4. The 12 regionally located reserve banks ..... A) Assists the U.S. Treasury by distributing currency, provides overnight loans to commercial banks, and processes electronic payments. B) Handle all deposits made by federal employees. C) Store 1/12 of the gold used to support the value of the the U.S. dollar. D) Visit other countries to study their banking system looking for opportunities to improve. Show Answer Correct Answer: A) Assists the U.S. Treasury by distributing currency, provides overnight loans to commercial banks, and processes electronic payments. 5. IS-LM model shows the ..... of the goods and money markets A) Separation. B) Integration. C) Closure. D) None of the above. Show Answer Correct Answer: B) Integration. 6. What are the three economic goals every society seeks to accomplish? A) Full employment, stable prices, economic growth. B) 6% inflation, 10% unemployment, slow economic growth. C) Everyone employed, control inflation, flat economic growth. D) Promote economic growth, full unemployment, limit inflation. Show Answer Correct Answer: A) Full employment, stable prices, economic growth. 7. What is not a reason why the average size of families is likely to be greater in developing countries than in developed countries? A) Children offer the prospect of security in old age. B) Government child care support is widely available. C) Means of birth control are less available and more expensive. D) Women are less likely to be part of the workforce. Show Answer Correct Answer: B) Government child care support is widely available. 8. Money is defined as anything that acts as a medium of exchange A) TRUE. B) FALSE. Show Answer Correct Answer: A) TRUE. 9. Transfer payment is not included in national income but included in ..... A) GDP. B) Personal Income. C) NNP. D) GNP. Show Answer Correct Answer: B) Personal Income. 10. What is an example of structural unemployment? A) A recent college graduate looking for their first job. B) A VCR repairman who lost their job due to obsolescence. C) A person between jobs. D) A person who has given up looking for work. Show Answer Correct Answer: B) A VCR repairman who lost their job due to obsolescence. 11. Which best describes the components of a fiscal policy? A) Government spending and taxation. B) Consumer spending and productivity. Show Answer Correct Answer: A) Government spending and taxation. 12. Inflation is said to be demand pull if those who buy goods and services desire to purchase goods and services greater than what the economy can produce. A) Inflation. B) Hyperinflation. C) Demand pull inflation. D) Cost push inflation. Show Answer Correct Answer: C) Demand pull inflation. 13. Which are the two sectors in case of two sector model? A) Household and government. B) Household and firm. C) Firm and government. D) None of the above. Show Answer Correct Answer: B) Household and firm. 14. Which of the following studies economics as a whole? A) MACRO ECONOMICS. B) MICRO ECONOMICS. C) GOVERNMENT. D) RBI. Show Answer Correct Answer: A) MACRO ECONOMICS. 15. Quanitity supplied A) The amount of a good or service that a firm is willing and able to supply at a given price. B) Y-axis. C) Limited quantities of resources to meet unlimited wants. D) The actual amount of a good or service consumers are willing to buy at some specific price. Show Answer Correct Answer: A) The amount of a good or service that a firm is willing and able to supply at a given price. 16. What has NAFTA encourage countries to do? A) Participate in the global economy. B) Create universal minimum wage laws. C) Create a uniformed currency. D) Participated in writing laws to end pollution. Show Answer Correct Answer: A) Participate in the global economy. 17. Contractionary policy utilized by the Fed would be best served for which of the following issues? A) To curb inflation during an expansion phase. B) To help reduce unemployment. C) To help increase the money supply. D) Taxes are too high. Show Answer Correct Answer: A) To curb inflation during an expansion phase. 18. What do households provide to the resource market? A) Land, labour, capital. B) Money. C) People. D) Income. Show Answer Correct Answer: A) Land, labour, capital. 19. Equilibrium price A) The price at which the amount producers are willing to supply is equal to the amount consumers are willing to buy. B) Specialization in production. C) The quantity at which quantity demanded and quantity supplied are equal for a certain price level. D) Land, labor, capital, entrepreneurship. Show Answer Correct Answer: A) The price at which the amount producers are willing to supply is equal to the amount consumers are willing to buy. 20. The long run aggregate supply curve is also known as A) Structural unemployment. B) Full-employment. C) The natural rate of employment. D) Cyclical unemployment. Show Answer Correct Answer: B) Full-employment. ← 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