This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Macroeconomics – Quiz 140 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 140 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which type of market results in stock prices rising? A) Bull Market. B) Bear Market. Show Answer Correct Answer: A) Bull Market. 2. Which of the following best illustrates the unit of account function of money? A) You list prices for candy sold on your Web site, www.sweettooth.com, in RMs. B) You pay for your WNBA tickets with RMs. C) You keep RM10 in your backpack for emergencies. D) None of the above is correct. Show Answer Correct Answer: A) You list prices for candy sold on your Web site, www.sweettooth.com, in RMs. 3. The ..... slopes upwards because higher price levels will raise domestic output. A) Aggregate demand curve. B) Aggregate supply curve. C) Demand curve. D) None of the above. Show Answer Correct Answer: B) Aggregate supply curve. 4. When a nation's imports exceed its exports and is calculated as imports-exports A) Inventory. B) Gross domestic product. C) Trade surplus. D) Trade deficit. Show Answer Correct Answer: D) Trade deficit. 5. The four factors of production are land, capital, labor, and financing. A) True. B) False. Show Answer Correct Answer: B) False. 6. True or false:recessions usually last at least 6 months. A) True. B) False. Show Answer Correct Answer: A) True. 7. Despite the ups and downs of the business cycle, over time, the general trend of the cycle in the United States has been A) Upward sloping showing economic growth. B) Completely flat indicating the economy is still where we were decades ago. C) Downward sloping showing economic shrinkage. D) Has been a decade of growth followed by a decade of decline. Show Answer Correct Answer: A) Upward sloping showing economic growth. 8. When the crowding-out effect of an increase in government purchases is included in the analysis A) AD shifts left. B) AD doesn't change. C) AD shifts rights, but by more than the simple multiplier analysis would imply. D) Ad shifts rights, but by less than the simple multiplier analysis would imply. Show Answer Correct Answer: D) Ad shifts rights, but by less than the simple multiplier analysis would imply. 9. T/F:Microeconomics is the study of the whole economy A) True. B) False. Show Answer Correct Answer: B) False. 10. Addition to the capital stock of an economy is termed as A) All of these. B) Consumption of fixed capital. C) Capital loss. D) Investment. Show Answer Correct Answer: D) Investment. 11. Increase reserve deposit ratio A) Increase in reserve requirements = lowers m and MSincrease interest rate on reserves = lower m and MS. B) Decrease in reserve requirements = raises m and MSdecrease interest rate on reserves = lower m and MS. C) Increase in reserve requirements = lowers m and MSdecrease interest rate on reserves = raises m and MS. D) Decrease in reserve requirements = raises m and MSdecrease interest rate on reserves = raises m and MS. Show Answer Correct Answer: A) Increase in reserve requirements = lowers m and MSincrease interest rate on reserves = lower m and MS. 12. Which of the following is the best definition of productivity? A) The ratio of total output to total inputs. B) The amount of output a firm produces. C) The quality of a firm's factors of production. D) The number of workers in the economy. Show Answer Correct Answer: A) The ratio of total output to total inputs. 13. What are the four phases of the business cycle? A) Rise, climax, fall, and bottom. B) Upswing, climax, downturn, and bottom. C) Growth, climax, decline, and bottom. D) Expansion, peak, contraction, and trough. Show Answer Correct Answer: D) Expansion, peak, contraction, and trough. 14. Induced savings means when Y increase then S decrease A) TRUE. B) FALSE. Show Answer Correct Answer: B) FALSE. 15. A market economy is best defined as A) An economic system with a central authority that makes major economic decisions. B) An economic system in which supply, demand, and the price system help people make economic decisions. C) An Economic system in which private citizens own and use the factors of production in order to generate profits. D) An economic system that has some combination of traditional, command, and market activities. Show Answer Correct Answer: B) An economic system in which supply, demand, and the price system help people make economic decisions. 16. China can make cellphones faster and cheaper than America, therefore America just lets them and focuses on other areas. China is said to have a ..... A) Favorable Balance of Trade. B) Unfavorable Balance of Trade. C) Interdependence. D) Comparative Advantage. Show Answer Correct Answer: D) Comparative Advantage. 17. In the circular flow diagram firms pay wages for which factor of production? A) Land. B) Labor. C) Entrepreneurship. D) Raw materials. Show Answer Correct Answer: B) Labor. 18. Other things being constant, an increase in marginal tax rates will A) Decrease the supply of labor and reduce its productive efficiency. B) Decrease the supply of capital and decrease its productive efficiency. C) Encourage individuals to buy goods that are tax deductible instead of those that are more desired but nondeductible. D) Do all of the above. Show Answer Correct Answer: D) Do all of the above. 19. Macroeconomics is a ..... equilibrium analysis as it studies. A) Partial. B) General. Show Answer Correct Answer: B) General. 20. When a country (like China.) imports LESS goods/services than they export, their net exports will be ..... A) Positive. B) Negative. Show Answer Correct Answer: A) Positive. ← 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