This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Macroeconomics – Quiz 142 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 142 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The Federal Reserve does have an explicit inflation target of 2% per year A) True. B) False. Show Answer Correct Answer: B) False. 2. Something that makes people want to produce more goods and services A) Incentives. B) Macroeconomics. C) Inflation. D) GDP. Show Answer Correct Answer: A) Incentives. 3. Flexible income receivers and borrowers are the ..... helped by inflation. A) Least. B) Most. Show Answer Correct Answer: B) Most. 4. The taxing and spending policies of the president and Congress are known as A) Revenue policy. B) Fiscal policy. C) Monetary policy. D) Recession policy. Show Answer Correct Answer: B) Fiscal policy. 5. The common relationship that a higher price leads to greater quantity supplied and a lower price leads to a lower quantity supplied, while all other variables are held constant A) Quantity supplied. B) Law of demand. C) Law of supply. D) Quantity demanded. Show Answer Correct Answer: C) Law of supply. 6. What does M represent in calculating net imports? X-M A) Imports. B) Exports. C) Taxes. D) None of the Above. Show Answer Correct Answer: A) Imports. 7. Imagine you are an economist studying the cost of living in a typical urban area. You decide to measure the price of a standard group of goods that a typical consumer in this area would buy. What is the name of this price index? A) Gross Domestic Product. B) Consumer Price Index. C) Unemployment. D) Inflation. Show Answer Correct Answer: B) Consumer Price Index. 8. Indonesia that opens its trade to other countries through import and export would be considered a country that adopts ..... A) An open economy. B) A closed economy. Show Answer Correct Answer: A) An open economy. 9. What is possible dissadvatage of economic growth? A) A depletion of non-renewable resources. B) An increase in unemployment. C) A reduction in the government's ability to reduce poverty. D) A reduction in the productive capacity of the economy. Show Answer Correct Answer: A) A depletion of non-renewable resources. 10. Which of the following is not part of market-based supply-side policies? A) Removing market imperfections such as excessive trade union power. B) Removing restrictive trade practices of monopolies and oligopolies. C) Creating incentives to work by establishing the most efficient rates of direct tax. D) Increasing the investment in a country's infrastructure to boost its productive capacity. Show Answer Correct Answer: D) Increasing the investment in a country's infrastructure to boost its productive capacity. 11. The ..... is the primary monetary policy making body of the FED. A) Board of Governors. B) FOMC. C) 12 District Banks. D) Thrift Advisory Council. Show Answer Correct Answer: B) FOMC. 12. TRUE or FALSE:The aggregate demand (AD) curve plots the relationship between interest rates and aggregate demand. A) TRUE. B) FALSE. Show Answer Correct Answer: B) FALSE. 13. When is the fiscal year? A) January 1-December 31. B) April 15-April 14. C) October 1-September 30. D) None of above. Show Answer Correct Answer: C) October 1-September 30. 14. Which of the following scenarios would allow a bank to loan out more money? A) The Federal Reserve lowers the reserve requirement. B) The Federal Reserve raises the reserve requirement. Show Answer Correct Answer: A) The Federal Reserve lowers the reserve requirement. 15. Mr. Alex, age 70, is a customer of Bank Muscat. Suppose, he submitted a will to the bank and the bank executed the same after their death. Which agency function the bank is performing here? A) Trustee. B) Executor. C) Trustee and executor. D) Principal and agent. Show Answer Correct Answer: C) Trustee and executor. 16. The followings are the objectives of taxation EXCEPT ..... A) Equitable distribution of income. B) Reduction of harmful consumption. C) Involves penalty for non-payment. D) Conservation of resources. Show Answer Correct Answer: C) Involves penalty for non-payment. 17. If inflation increases from 2% to 5%, the money demand curve will: A) Be unaffected. B) Shift to the right. C) Shift to the left. D) Remain constant, but the quantity of money demanded will decrease. E) Remain constant, but the quantity of money demanded will increase. Show Answer Correct Answer: B) Shift to the right. 18. Who benefits from unanticipated inflation? A) Borrowers. B) Savers. C) Retirees. D) College Students. Show Answer Correct Answer: A) Borrowers. 19. Which is the smallest measure of money supply? A) M1. B) M2. C) M3. D) M4. Show Answer Correct Answer: A) M1. 20. Oil is this type of scarce resource. A) Human Capital. B) Land/Natural. C) Labor. D) Physical Capital. Show Answer Correct Answer: B) Land/Natural. ← 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