This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Macroeconomics – Quiz 160 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 160 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. How are economic transactions shaped in a traditional economy? A) Each community decides who will produce and who will buy. B) The elders decide based on the way things have always been done. C) The three basic questions of production do not arise in this type of economy. D) Individuals form networks to buy, sell and trade as they choose. Show Answer Correct Answer: B) The elders decide based on the way things have always been done. 2. Who "owns" most of the U.S. debt? A) American citizens. B) India. C) England. D) The International Monetary Fund. Show Answer Correct Answer: A) American citizens. 3. Multiple producers in a market Consumer choicesNo barriers to market entry The above are aspects of which characteristic of the American economic system? A) Competition. B) Binding contracts. C) Property rights. D) Profit motive. Show Answer Correct Answer: A) Competition. 4. Which one of the following is NOT a critique of GDP as a measure of human well-being? A) GDP includes defensive expenditures. B) GDP fails to account for the loss of leisure time. C) GDP fails to account for an unequal distribution of income. D) GDP fails to account for the benefits of social capital formation. E) GDP includes the benefits of intermediate goods. Show Answer Correct Answer: E) GDP includes the benefits of intermediate goods. 5. Those goods which satisfy human wants directly are called: A) Intermediate goods. B) Consumer goods. C) Capital goods. D) None of these. Show Answer Correct Answer: B) Consumer goods. 6. An example of a progressive tax would be a A) Flat tax. B) Social Security Tax. C) Federal Income Tax. D) Sales Tax. Show Answer Correct Answer: C) Federal Income Tax. 7. Which of the following goods would be considered scarce? I.Education II.Gold III. Time A) I only. B) II only. C) III only. D) I and II only. E) I, II and III. Show Answer Correct Answer: E) I, II and III. 8. What's an embargo? A) A tax on an import. B) An agreement between countries to have free trade between them. C) A type of currency. D) A complete ban on trade between countries. Show Answer Correct Answer: D) A complete ban on trade between countries. 9. Which of the following is consistent with the law of demand? A) A decrease in the price of a gallon of milk causes a decrease in the quantity of milk demanded. B) An increase in the price of soda causes a decrease in the quantity of soda demanded. C) An increase of the price of tape causes an increase in the quantity of tape demanded. D) A decrease in the price of juice causes no change in the quantity of juice demanded. Show Answer Correct Answer: B) An increase in the price of soda causes a decrease in the quantity of soda demanded. 10. The forgone benefit that would have been derived from an option not chosen A) Opportunity Cost. B) Trade Off. C) Supply. D) Unemployment. Show Answer Correct Answer: A) Opportunity Cost. 11. A country's ....., or simply the ....., is the difference between its sales of assets to foreigners and its purchases of assets from foreigners during a given period. A) Balance of Payments on the Financial Account; Financial Account. B) Balance of Payments on the Current Account; Current Account. C) Merchandise Trade Balance; Trade Balance. D) Balance of Payments on Goods and Services; Goods and Services Account. Show Answer Correct Answer: A) Balance of Payments on the Financial Account; Financial Account. 12. A popular musical act announces a concert at a 10, 000 seat venue. Prices for tickets skyrocket so the venue announces that there will be 500 standing room only tickets offered. What concept does this demonstrate? A) Elastic supply. B) Inelastic supply. C) Change in supply. D) Change in quantity supplied. Show Answer Correct Answer: D) Change in quantity supplied. 13. If a factory used to make Ford cars is shut down at the same time that the price of Toyota cars decreases, what will happen to the market for Ford cars? A) Eq P increases, but we don't know what happens to Eq Q. B) Eq P decreases, but we don't know what happens to Eq Q. C) Eq Q increases, but we don't know what happens to Eq P. D) Eq Q decreases, but we don't know what happens to Eq P. Show Answer Correct Answer: D) Eq Q decreases, but we don't know what happens to Eq P. 14. The government revenue such as licenses and permits, petroleum royalty, interest, fees and penalties refers to A) Tax revenue. B) Non tax revenue. C) Non-revenue receipts. D) Government tax. Show Answer Correct Answer: B) Non tax revenue. 15. Which best represents the "law of supply" ? A) The amount of goods available. B) Producers offer more of a good at a higher price. C) Producers offer more of a good at a lower price. D) Consumers want more of a good when the price is low. Show Answer Correct Answer: B) Producers offer more of a good at a higher price. 16. A market in which there are many buyers and sellers of the same good or service, none of whom can influence the price at which the good or service is sold. A) Competitive Market. B) Command Market. C) Mixed Market. D) None of above. Show Answer Correct Answer: A) Competitive Market. 17. The type of goods where if income increases, the amount of goods consumed also increases is..... A) Inferior goods. B) Normal goods. C) Giffen goods. D) Superior goods. Show Answer Correct Answer: B) Normal goods. 18. The business cycle since World War II has been characterized by A) Extended expansions alternating with brief recessions. B) Brief expansions alternating with lengthy recessions. C) Uninterrupted expansion. D) Uninterrupted recession. Show Answer Correct Answer: A) Extended expansions alternating with brief recessions. 19. A situation in which quantity demanded is greater than quantity supplied is A) A shortage. B) A surplus. C) A price floor. D) A price ceiling. Show Answer Correct Answer: A) A shortage. 20. If an individual owns a corporation for which he is the only employee, which different types of federal tax will he have to pay? A) Federal income tax, self-employment tax, and federal unemployment tax (FUTA). B) Social Security tax, Medicare tax, and estate tax. C) Excise tax, gift tax, and customs duty. D) State income tax, sales tax, and property tax . Show Answer Correct Answer: A) Federal income tax, self-employment tax, and federal unemployment tax (FUTA). ← 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