This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Macroeconomics – Quiz 157 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 157 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of the following is not a topic studied in Macroeconomics? A) Inflation rate. B) Price of Toyota cars. C) Gross domestic product. D) Unemployment rate. Show Answer Correct Answer: B) Price of Toyota cars. 2. When prices are low, the owners of businesses are less likely to create and sell more products. A) Law of Supply. B) Law of Demand. C) Law of Supply and Demand. D) Market Price. Show Answer Correct Answer: A) Law of Supply. 3. Utility A) Relationship between the price of a product and the quantity of the product supplied. B) The action of buying and selling goods and services. C) Total satisfaction or benefit from consuming a good or service. D) An increase in demand with no change in supply. Show Answer Correct Answer: C) Total satisfaction or benefit from consuming a good or service. 4. What are some examples of natural resources? A) Doctor, Engineer, Teacher, Worker. B) Trees, cows, oil, water, rocks, minerals. C) Truck, building, container, computer. D) Starting a business for profit. Show Answer Correct Answer: B) Trees, cows, oil, water, rocks, minerals. 5. For Dunkin Donuts, what would their purchasing tea bags to make iced tea be considered? A) Taxes. B) Wages. C) Demand. D) Input costs. Show Answer Correct Answer: D) Input costs. 6. When any commercial bank is unable to meet financial obligation then it approaches Central Bank for financial accommodation this function of Central Bank is called A) Banker of bank. B) Lender of last resort. C) Bank of Government. D) Controller of credit. Show Answer Correct Answer: B) Lender of last resort. 7. The unemployment rate is the ratio of A) Unemployed to labor force. B) Employed to labor force. C) Seeking employment to labor force. D) Dissatisfied to labor force. Show Answer Correct Answer: C) Seeking employment to labor force. 8. External sources of public borrowing are A) Loans from the international money market. B) Borrowing from financial institutions. C) Loans from commercial banks. D) Loans from the central bank. Show Answer Correct Answer: A) Loans from the international money market. 9. The purchase of new capital goods (tools, instruments, machines, buildings) and additions to inventories A) Exports of goods and services. B) Real GDP. C) Investment. D) Net exports of goods and services. Show Answer Correct Answer: C) Investment. 10. What does the multiplier effect exemplify? A) How spending is magnified in the economy. B) How much consumers use from their income. C) How much the government spends from the national budget. D) How often the economy goes through various business cycles. Show Answer Correct Answer: A) How spending is magnified in the economy. 11. When our national import increases, ..... A) Demand for foreign exchange increase. B) Demand for foreign exchange decrease. C) Supply for foreign exchange increase. D) Supply for foreign exchange decrease. Show Answer Correct Answer: A) Demand for foreign exchange increase. 12. What section of the Keynesian aggregate supply curve is explained by idle resources? A) Section I. B) Section II. C) Section III. D) Section IV. Show Answer Correct Answer: A) Section I. 13. Macroeconomics explains the behavior of individual household and business firms. A) TRUE. B) FALSE. Show Answer Correct Answer: B) FALSE. 14. If the price on a product goes up the quantity demanded will go down. This follows the economic theory of: A) Law of Demand. B) Elasticity. C) Ceteris Paribus. D) Both A and C. Show Answer Correct Answer: D) Both A and C. 15. An analyst gathered the following market share data for an industry comprised of five companies:The industry's three-firm Herfindahl-Hirschmann Index is closest to: A) 0.185. B) 0.225. C) 0.235. D) None of above. Show Answer Correct Answer: B) 0.225. 16. If a bank pays 3% interest on savings, how much interest will it charge for loans? A) 3%. B) Less than 3%. C) More than 3%. D) The discount rate. Show Answer Correct Answer: C) More than 3%. 17. The taxing authority charges the same percentage rate of tax from each taxpayer, irrespective of income A) Proportional Tax. B) Frictional Tax. C) Expansionary Tax. D) Structural Tax. Show Answer Correct Answer: A) Proportional Tax. 18. An increase in inflation in the United States relative to the rate in France would make: A) US goods relatively less expensive in the United States and in France. B) French goods relatively less expensive in the United States and US goods relatively more expensive in France. C) French goods relatively more expensive in the United States and in France. D) French goods relatively more expensive in the United States and US goods relatively less expensive in France. Show Answer Correct Answer: B) French goods relatively less expensive in the United States and US goods relatively more expensive in France. 19. In order to help the economy grow, the government can A) Increase spending. B) Decrease spending. C) Lower taxes. D) Raise taxes. Show Answer Correct Answer: A) Increase spending. 20. Gross Domestic Product includes. Consumer spending II. Government spending III. Fixed investment A) I and II only. B) II and III only. C) I and III only. D) I, II, III. Show Answer Correct Answer: D) I, II, III. ← 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