This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Macroeconomics – Quiz 150 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 150 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of the following is 'expansionary' fiscal policy? A) Decrease interest rates. B) The Bank of England 'buys' bonds, increasing the money supply. C) Decrease income taxes. D) Decrease spending on the military and defence. Show Answer Correct Answer: C) Decrease income taxes. 2. What is the term for the total value of all goods and services produced within a country's borders in a specific time period? A) Gross Domestic Product (GDP). B) Net Domestic Product (NDP). C) Gross National Product (GNP). D) Net National Product (NNP). Show Answer Correct Answer: A) Gross Domestic Product (GDP). 3. What is my full name? Hehe ..... A) Nabilah Hannah Delisha. B) Nabilah Blackpick. C) Nabilah Mohammad Kassim. D) Nabilah Wonderful. Show Answer Correct Answer: C) Nabilah Mohammad Kassim. 4. If nominal GDP is $ 3, 200 billion and M1 is $ 800 billion, then velocity is A) 0.5. B) 2. C) 4. D) 8. E) 400. Show Answer Correct Answer: C) 4. 5. Decrease monetary base A) OMO:buy govt bonds to increase quantity of money in circulationdiscount rate:lower the discount rate. B) OMO:buy govt bonds to increase quantity of money in circulationdiscount rate:raise the discount rate. C) OMO:sell govt bonds to decrease quantity of money in circulationdiscount rate:lower the discount rate. D) OMO:sell govt bonds to decrease quantity of money in circulationdiscount rate:raise the discount rate. Show Answer Correct Answer: D) OMO:sell govt bonds to decrease quantity of money in circulationdiscount rate:raise the discount rate. 6. The term 'macro' has been derived from A) Greek word 'makros' which means large. B) English word 'makros' which means large. C) Greek word 'makros' which means small. D) French word 'makros' which means large. Show Answer Correct Answer: A) Greek word 'makros' which means large. 7. A condition facing all societies because there are not enough productive resources to satisfy people's unlimited wants. A) Shortage. B) Trade-Off. C) Choice. D) Scarcity. E) Opportunity Cost. Show Answer Correct Answer: D) Scarcity. 8. One type of specialization is division of ..... A) Labor. B) Product. C) Advantage. D) None of above. Show Answer Correct Answer: A) Labor. 9. Which economic condition is caused by increased unemployment over an extended period of time? A) A contraction phase of the business cycle. B) An expansion phrase of the business cycle. Show Answer Correct Answer: A) A contraction phase of the business cycle. 10. The Federal Reserve Bank's activities are controlled by A) The President. B) Board of Governors. C) Congress. D) The citizens. Show Answer Correct Answer: B) Board of Governors. 11. How does the introduction of forward-looking expectations impact the effectiveness of monetary policy in the IS-LM model? A) Enhances the effectiveness of monetary policy. B) Reduces the effectiveness of monetary policy. C) Has no impact on the effectiveness of monetary policy. D) Makes the LM curve perfectly elastic. Show Answer Correct Answer: A) Enhances the effectiveness of monetary policy. 12. No single economic measure is sufficient to diagnose the health of an economy: A) True. B) False. Show Answer Correct Answer: A) True. 13. A country should reduce its barriers to import from another country if the other country: A) Has some sort of 'unfair' competitive advantage over it. B) Is not willing to reduce its import barriers reciprocally. C) Does not have some sort of 'unfair' competitive advantage over it. D) Is not willing to trade under any condition. Show Answer Correct Answer: C) Does not have some sort of 'unfair' competitive advantage over it. 14. High levels of GDP per capita indicate ..... A) Higher levels of happiness. B) Higher standard of living. C) Equal levels of wealth. D) Self-sufficient communities. Show Answer Correct Answer: B) Higher standard of living. 15. Measures cost by what we give up/forfeit in exchange; measures the value of the forgone alternative A) Budget Constraint. B) Opportunity Cost. C) Opportunity Set. D) Marginal Analysis. Show Answer Correct Answer: B) Opportunity Cost. 16. Real exchange rate is A) The relative price of domestic goods in terms of foreign goods. B) A price of a currency in terms of another currency. C) Used to exchange currencies. D) None of above. Show Answer Correct Answer: A) The relative price of domestic goods in terms of foreign goods. 17. Social insurance payment by employer's is added to A) Personal income. B) Disposable income. C) Compensation of employees. D) All of above. Show Answer Correct Answer: C) Compensation of employees. 18. Which is the following statement is correct in socialistic economy? A) There should be equality income in economy. B) There should be right to own property. C) Economic activity is carried out for self interest. D) Profit is the sole objective of economy. Show Answer Correct Answer: A) There should be equality income in economy. 19. The ..... for a given year is 100 times the ratio of nominal GDP to real GDP that year. A) GDP Deflator. B) Market Basket. C) Aggregate Price Level. D) Inflation Rate. Show Answer Correct Answer: A) GDP Deflator. 20. In terms of products, what do businesses provide for households? A) Goods. B) Services. C) Sales. D) Income. Show Answer Correct Answer: A) Goods. ← 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