This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Macroeconomics – Quiz 15 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 15 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of the following is the most likely reason for a monetary policy that decreases the money supply? A) To control inflation. B) To reduce unemployment. C) To increase total spending. D) To encourage production. Show Answer Correct Answer: A) To control inflation. 2. Which is not a function of Central bank? A) To be a banker to other bank. B) To promote monetary stability and a financial structure. C) To import the printing of currency. D) Be a holder of the country's stock of gold and foreign currency reserves. Show Answer Correct Answer: C) To import the printing of currency. 3. An increase in the price of gasoline will most likely cause the demand curve for tires to change in which direction? A) To the left, because gasoline and tires are substitutes. B) To the left, because gasoline and tires are complements. C) To the right, because gasoline and tires are substitutes. D) To the right, because gasoline and tires are complements. Show Answer Correct Answer: B) To the left, because gasoline and tires are complements. 4. Macroeconomics refers to all, except A) Countries. B) National output. C) GST. D) Utility of household. Show Answer Correct Answer: D) Utility of household. 5. Under this principle of taxation, a person that benefits from the use of a good or service should pay for it. A) Ability to pay principle. B) Benefit principle. C) Progressive principle. D) Regressive principle. Show Answer Correct Answer: B) Benefit principle. 6. Madinsonia has a real gross domestic production (GDP) per capita of $ 10, 000.Which of the following statements can we infer from this information? A) Every person has an income of at least $ 10, 000. B) Every person has an income of less than $ 10, 000. C) The average income of a person is $ 10, 000, but this might not be the typical person's income. D) Without knowing the size of the population, we cannot say what a typical person earns. Show Answer Correct Answer: C) The average income of a person is $ 10, 000, but this might not be the typical person's income. 7. Productivity is the the quantity of goods and services produced from each hour of a worker's time A) TRUE. B) FALSE. Show Answer Correct Answer: A) TRUE. 8. A view that focuses attention on the demand for money for transaction purposes, namely according to the view..... A) Keynesian. B) Monetarist. C) Economist Austria. D) Choudhury. Show Answer Correct Answer: B) Monetarist. 9. Why is it important to start investing as soon as possible? A) You have more time for your money to compound. B) You take less risk when you are young, so money will be safe. C) Investing is an easy way to make quick money. D) Fees on investments are cheaper when you are younger. Show Answer Correct Answer: A) You have more time for your money to compound. 10. Which is NOT a part of the GDP equation? A) Consumer Consumption. B) Net Exports. C) Business Investments. D) Value of Money. Show Answer Correct Answer: D) Value of Money. 11. A moderate inflation rate is usually identified around what percentage of price increases? A) 10%. B) 10%-30%. C) 30%-60%. D) 50%. Show Answer Correct Answer: B) 10%-30%. 12. A ..... is a hypothetical set of consumer purchases of goods and services. A) Market Basket. B) Aggregate Price Level. C) Consumer Price Index (CPI). D) Producer Price Index (PPI). Show Answer Correct Answer: A) Market Basket. 13. Which order best illustrates the business cycle? A) Recession-Trough-Expansion-Peak. B) Trough-Recession-Expansion-Peak. C) Recession-Expansion-Depression-Peak. D) Peak-Depression-Recession-Expansion. Show Answer Correct Answer: A) Recession-Trough-Expansion-Peak. 14. What is the purpose of Fiscal Policy? A) Contribute to economic growth and stability. B) Keep rich people from getting too rich. C) Functions exactly like Fiscal Policy. D) Give Congress and the political parties more control of the economy. Show Answer Correct Answer: A) Contribute to economic growth and stability. 15. Govt purchases multiplier:$\frac{\Delta Y}{\Delta G}$ A) $\frac{1}{1-MPC}$. B) $\frac{1}{MPC-1}$. C) $\frac{MPC-1}{1}$. D) $\frac{1-MPC}{1}$. Show Answer Correct Answer: A) $\frac{1}{1-MPC}$. 16. Selling their services to businesses on a contract basis A) Independent Contractor. B) Wages. C) Contingent Employment. D) Telecommuting. Show Answer Correct Answer: A) Independent Contractor. 17. Wheat flour used in baking bread and biscuit is ..... A) Intermediate good. B) Final good. C) Capital goods. D) Consumption goods. Show Answer Correct Answer: A) Intermediate good. 18. The ..... is a rule for setting the federal funds rate that takes into account both the inflation rate and the output gap. A) Taylor Rule for Monetary Policy. B) Fisher Effect. C) Monetary Policy Rule. D) None of above. Show Answer Correct Answer: A) Taylor Rule for Monetary Policy. 19. The economy of Burginville has been running budget deficits which it paid for by borrowing.What is the likely impact of government borrowing on spending on capital goods and economic growth in Burginville? A) Increase in spending on capital goods; no effect on economic growth. B) A decrease in spending on capital goods; a decrease in economic growth. C) Increase in spending on capital goods; an increase in economic growth. D) No effect on spending on capital goods or economic growth. E) A decrease in spending on capital goods; no effect on economic growth. Show Answer Correct Answer: B) A decrease in spending on capital goods; a decrease in economic growth. 20. If Minh received a $ 2, 500 bonus and his MPS is 0.20, his consumption rises by $ ..... and his saving rises by $ ..... A) 500; 100. B) 2, 500; 200. C) 2, 000; 500. D) 2, 500; 20. Show Answer Correct Answer: C) 2, 000; 500. ← 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