This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Macroeconomics – Quiz 16 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 16 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What type of unemployment occurs when the economy is in a recession? A) Frictional unemployment. B) Structural unemployment. C) Cyclical unemployment. D) All types of unemployment. Show Answer Correct Answer: C) Cyclical unemployment. 2. The practice of doing office work in a location other than the traditional office. A) Wages. B) Telecommuting. C) Independent Contractors. D) Contingent Employment. Show Answer Correct Answer: B) Telecommuting. 3. An economy at the steady state will stay there, an economy not at the steady state will go there A) True. B) False. Show Answer Correct Answer: A) True. 4. A Trade Surplus In A Country's Trade Balance Could Occur When? A) Exports aren't greater than Imports. B) Imports are greater than Exports. C) Exports are lower than Imports. D) Imports aren't greater than Exports. Show Answer Correct Answer: D) Imports aren't greater than Exports. 5. What is structural unemployment? A) Unemployment caused by a lack of demand for labor. B) Unemployment caused by technological advancements. C) Unemployment caused by a decrease in government spending. D) Unemployment caused by a mismatch between skills and employer needs. Show Answer Correct Answer: D) Unemployment caused by a mismatch between skills and employer needs. 6. Mexico has the world's ..... largest GDP A) 8th. B) 15th. C) 43rd. D) 50th. Show Answer Correct Answer: B) 15th. 7. Which one of the following statements is FALSE? A) The classical macroeconomic model has a downward-sloping AD curve. B) The classical macroeconomic model has a vertical AS curve. C) Classical macroeconomists would not recommend expansionary fiscal policies. D) Keynesian macroeconomists believe that fiscal policy can change the equilibrium level of output. E) Keynesian macroeconomists would not recommend expansionary fiscal policy. Show Answer Correct Answer: E) Keynesian macroeconomists would not recommend expansionary fiscal policy. 8. The "efficiency wage" theory states that ..... A) Employers can motivate employees by paying them more than the prevailing wage. B) There is only one wage rate that will result in equilibrium in the labor market. C) Existing employees can keep their wages artificially high as compared to newer workers. D) Wages should be set with long-term contracts to avoid inefficiencies associated with temporary changes in market conditions. E) Wages should be set with short-term contracts to allow for the maximum flexibility as market conditions change. Show Answer Correct Answer: A) Employers can motivate employees by paying them more than the prevailing wage. 9. What is the Gini Coefficient of a country with low levels of inequality A) 0.00. B) 0.20. C) 0.40. D) 0.60. Show Answer Correct Answer: B) 0.20. 10. Which type of employment is characterized by the need of or the lack of skills? A) Structural. B) Frictional. C) Seasonal. D) Cyclical. Show Answer Correct Answer: A) Structural. 11. A country's ..... accounts are a summary of their transactions with other countries A) Exchange. B) Balance of payment. C) Income statement. D) Line of credit. Show Answer Correct Answer: B) Balance of payment. 12. ..... are rules set by the Federal Reserve that determine the required reserve ratio for banks. A) Reserve Requirements. B) Bank Reserves. C) Reserve Ratio. D) Required Reserve Ratio. Show Answer Correct Answer: A) Reserve Requirements. 13. The type of goods that if income increases, the amount of goods consumed will decrease is..... A) Inferior goods. B) Normal goods. C) Giffen goods. D) Superior goods. Show Answer Correct Answer: A) Inferior goods. 14. What happens to demand and price of a product when the popularity increases? A) Stays the same. B) Increases. C) Decreases. D) There is no demand for popular goods. Show Answer Correct Answer: B) Increases. 15. The government begins funding training programs to teach computer repair and website design to unemployed adults. Which kind of unemployment would such training help MOST? A) Frictional. B) Seasonal. C) Structural. D) Cyclical. Show Answer Correct Answer: C) Structural. 16. A disadvantage of a command economy A) Items are produced only for profit. B) It cannot "change direction" easily. C) It does little to help the less advantaged obtain what they need. D) The government may produce things people don't need or want. Show Answer Correct Answer: D) The government may produce things people don't need or want. 17. Contractionary Fiscal Policy A) Output is low and unemployment is more than NRU. Actual GDP is below potential GDP. B) Laws that reduce inflation, decrease GDP (Close an Inflationary Gap)-G or + taxes (-C). C) Output is high and unemployment is less than NRU. Actual GDP is above potential GDP. D) A gap with higher prices and a decrease in GDP. E) Laws that reduce unemployment and increase GDP (Close a Recessionary Gap) + G or-taxes (+C). Show Answer Correct Answer: B) Laws that reduce inflation, decrease GDP (Close an Inflationary Gap)-G or + taxes (-C). 18. Which of the following is an example of an automatic stabilizer? A) Discretionary fiscal policy. B) Progressive income taxes. C) Autonomous consumption. D) The spending multiplier. E) Cyclical unemployment. Show Answer Correct Answer: B) Progressive income taxes. 19. Which combination of fiscal and monetary policy would speed up the economy? A) Increase taxes; decrease reserve requirement. B) Decrease taxes; decrease discount rate. C) Increase spending; increase interest on reserves. D) Decrease spending; sell bonds via open market operations. Show Answer Correct Answer: B) Decrease taxes; decrease discount rate. 20. Wealth Effect A) "Sticky Wages" prevents wages from falling. The government should deficit spend to close the gap. B) Price levels effect purchasing power which effects spending. C) When U.S. price levels rise, then GDP decreases due to an increase in imports and a decrease in exports. D) Price levels and economy will fix itself. No Government involvement required. E) When price levels increase, lenders need to charge higher interest rates which decreases consumer and business investment spending. Show Answer Correct Answer: B) Price levels effect purchasing power which effects spending. ← 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