This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Macroeconomics – Quiz 148 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 148 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Budget deficits occur when ..... A) More money is being spent on welfare programs than has been allocated to those entities. B) The government is spending more than it collects in taxes in a fiscal year. C) Extreme levels of unemployment prevents normal tax collection rates. D) When interest rates promotes saving rather than spending. Show Answer Correct Answer: B) The government is spending more than it collects in taxes in a fiscal year. 2. One of the major assumptions of the classical economist school is ..... A) Lack of aggregate demand causes involuntary unemployment. B) Government's fiscal operations can reduce unemployment. C) Unemployment and inflation exist together. D) Economy will be in full employment equilibrium in the long run. Show Answer Correct Answer: D) Economy will be in full employment equilibrium in the long run. 3. The concept of the "invisible hand" only applies to a very small part of the free market. A) False. B) True. Show Answer Correct Answer: A) False. 4. Increasing A) Each additional unit produced means amounts of the other good (which are ever-increasing) must be given up. B) The knowledge and skills that workers acquire through education, training, and experience. C) Any resources used to create goods and services. Examples of inputs include labor (workers' time), fuel, materials, buildings, and equipment. D) The claim that, other things being equal, the quantity demanded of a good falls when the price of the good rises. Show Answer Correct Answer: A) Each additional unit produced means amounts of the other good (which are ever-increasing) must be given up. 5. Text book purchased by a students. A) Intermediate goods. B) Final Goods. C) None of these. D) None of above. Show Answer Correct Answer: B) Final Goods. 6. The ..... is the fraction of bank deposits that a bank holds as reserves. A) Reserve Ratio. B) Bank Reserves. C) Required Reserve Ratio. D) Reserve Requirements. Show Answer Correct Answer: A) Reserve Ratio. 7. Monetary policy is BEST described as ..... A) Benefits received by employees in addition to wages and salaries. B) Actions by the Federal Reserve System to expand or contract the money supply. C) A system that relies on supply and demand to determine the value of one currency to another. D) Actions by the federal government to use spending and revenue collection to influence the economy. Show Answer Correct Answer: B) Actions by the Federal Reserve System to expand or contract the money supply. 8. T/F:Inflation is defined as an increase in general price level of all goods and services. A) True. B) False. Show Answer Correct Answer: A) True. 9. In early America, a traditional market structure existed when A) Merchants purchased goods from England. B) Farmers sold produce in markets in towns. C) People bartered goods they produced for goods they needed. D) People set up guilds to regulate specific industries, like masons. Show Answer Correct Answer: C) People bartered goods they produced for goods they needed. 10. Which of the following is true if the economy is producing at the full-employment level of output? A) The unemployment rate is zero. B) No person is receiving unemployment compensation from the government. C) There is frictional unemployment. D) The government's budget is balanced. E) The balance of trade is in equilibrium. Show Answer Correct Answer: C) There is frictional unemployment. 11. GDP includes goods and services ..... A) That are intermediate in nature. B) At a moment in time because GDP is a stock variable. C) Produced by citizens or firms of a country regardless of where. D) Produced even if they are not sold in the marketplace. E) And it is NOT accurately described by any of these statements. Show Answer Correct Answer: E) And it is NOT accurately described by any of these statements. 12. Total spending in the economy is most likely to increase by the largest amount if which of the following occur to government spending and taxes? Taxes (1)-Government Spending (2) A) Decrease-(2) Increase. B) Decrease-(2) No change. C) Increase-(2) Increase. D) Increase-(2) Decrease. E) No change-(2) Increase. Show Answer Correct Answer: A) Decrease-(2) Increase. 13. Fiscal policy refers to what power of the federal government? A) Controlling credit. B) Printing money. C) Regulating interstate commerce. D) Taxing and spending. Show Answer Correct Answer: D) Taxing and spending. 14. A yard and lawn landscaper requires enough mechanical skill or training to run a lawn mower. This type of job falls under the category of ..... A) Unskilled labor. B) Semi-skilled labor. C) Skilled labor. D) Professional labor. Show Answer Correct Answer: B) Semi-skilled labor. 15. These are actions by the Federal Reserve to manage the money supply. A) Fiscal policy. B) Monetary policy. C) Progressive tax. D) Proportional tax. E) Regressive tax. Show Answer Correct Answer: B) Monetary policy. 16. How does operating at a deficit impact future federal budgets? A) It increases the amount of money needed for healthcare. B) It decreases the amount of future interest owed. C) It increases the amount of interest owed. D) It increases the amount of taxes owed by citizens. Show Answer Correct Answer: C) It increases the amount of interest owed. 17. Who is considered as father of modern macroeconomics? A) Adam Smith. B) Prof. J. M. Keynes. C) Prof. J. N. Keynes. D) Alfred Marshal. Show Answer Correct Answer: B) Prof. J. M. Keynes. 18. Inflation which is considered to be the "greases the wheels" of labor markets is..... A) 2% per year. B) 20% per year. C) 200% per year. D) All wrong. Show Answer Correct Answer: A) 2% per year. 19. In the United States, a healthy economy should have an unemployment rate of 4-6%. A) True. B) False. Show Answer Correct Answer: A) True. 20. Who controls fiscal policy? A) The Federal Reserve. B) The Federal Government. C) The FBI. D) Federal Income Tax. Show Answer Correct Answer: B) The Federal Government. ← 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