This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Macroeconomics – Quiz 151 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 151 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The central bank in the USA that regulates the monetary system A) The FED. B) FDIC. C) The IRS. D) Social Security. Show Answer Correct Answer: A) The FED. 2. Trade policy (restriction on imports) under fixed exchange rates A) Shifts IS* rightcentral bank must sell domestic currency which increases M and shifts LM* right. B) Shifts IS* rightcentral bank must buy domestic currency which increases M and shifts LM* right. C) Shifts IS* leftcentral bank must sell domestic currency which increases M and shifts LM* left. D) Shifts IS* rightcentral bank must buy domestic currency which increases M and shifts LM* left. Show Answer Correct Answer: A) Shifts IS* rightcentral bank must sell domestic currency which increases M and shifts LM* right. 3. Which of the following is most likely to cause an increase in both AD and AS? A) A reduction in the money supply. B) An increase in government spending. C) An increase in capital investment. D) A fall in the exchange rate. Show Answer Correct Answer: C) An increase in capital investment. 4. Inflation is always a cause for concern. A) True. B) False. Show Answer Correct Answer: B) False. 5. Consumption expenditure is not influenced by national income is refers to ..... A) Induced consumption. B) Autonomous consumption. C) Induced saving. D) Autonomous saving. Show Answer Correct Answer: B) Autonomous consumption. 6. To help close an inflationary gap, the government could A) Decrease taxes. B) Run budget deficits. C) Run budget surpluses. D) Increase government spending. Show Answer Correct Answer: C) Run budget surpluses. 7. For every hour past the first hour I workout I get less from the exercise. What economic principle can I apply to better understand this situation? A) Law of averages. B) Law of diminishing marginal utility. C) Law of supply and demand. D) Law of elastic demand. Show Answer Correct Answer: B) Law of diminishing marginal utility. 8. In expansionary monetary policy, government will ..... A) Sell securities, higher legal cash reserves requirement and increase bank rate. B) Decrease government expenditure, increase taxes. C) Increase government expenditure, decrease taxes. D) Purchase securities, lower legal cash reserves requirement, decrease bank rate. Show Answer Correct Answer: D) Purchase securities, lower legal cash reserves requirement, decrease bank rate. 9. Which of the following is an example of a natural resource? Choose the best answer. A) Wood (forests). B) Cars. C) Toothpaste. D) Backpacks. Show Answer Correct Answer: A) Wood (forests). 10. The long-run Phillips curve is A) Horizontal. B) Vertical. C) Upward sloping. D) Downward sloping. E) U-shaped. Show Answer Correct Answer: B) Vertical. 11. National income does not include ..... A) Wages and salaries. B) Rent and Royalty. C) Student scholarship. D) Corporate Tax. Show Answer Correct Answer: C) Student scholarship. 12. True or False:Technology is the technical means for the production of goods and services. A) True. B) False. Show Answer Correct Answer: A) True. 13. The market value of all final goods and services produced within a country in a given time period is the A) Wage-Price Spiral. B) Consumer Price Index. C) Gross Domestic Product. D) Net of Exports minus Imports. Show Answer Correct Answer: C) Gross Domestic Product. 14. What is the primary role of money in the economy? A) It helps set interest rates at financial institutions. B) It identifies prices in various markets. C) It provides a mechanism to assist foreign trade. D) It serves as a medium of exchange for goods & services. Show Answer Correct Answer: D) It serves as a medium of exchange for goods & services. 15. Frictional unemployment is caused by ..... A) Businesses involuntarily laying off their employees. B) Changes in the business cycle. C) Voluntary employment transitions within an economy. D) Harmful government policies. Show Answer Correct Answer: C) Voluntary employment transitions within an economy. 16. If a country's imports are greater than its exports, what is the trade balance called? A) Trade surplus. B) Trade deficit. C) Trade equilibrium. D) Trade gap. Show Answer Correct Answer: B) Trade deficit. 17. Which of the following would the FED us to increase the money supply? A) Raise the discount rate. B) Raise the required reserves. C) Buy bonds/securities. D) Print more money. Show Answer Correct Answer: C) Buy bonds/securities. 18. Which of the variables below is used in inflation calculations? A) GDP. B) FDI. C) CPI. D) HDI. Show Answer Correct Answer: C) CPI. 19. Which is the knowledge and skills that enable workers to be productive A) Human Capital. B) Wages. C) Wage Rate. D) Derived Demand. Show Answer Correct Answer: A) Human Capital. 20. As income rises from $ 50, 000 to $ 60, 000, consumption increases from $ 40, 000 to $ 48, 000. In this case, what is the MPC? A) 0.80. B) 0.20. C) 0.10. D) 0.90. Show Answer Correct Answer: A) 0.80. ← 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