This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Macroeconomics – Quiz 163 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 163 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of these policies will have the most negative effect on inequality? A) Education and training. B) Encouraging competition by regulating monopolies. C) Reducing corporation tax. D) Reducing unemployment benefits. Show Answer Correct Answer: D) Reducing unemployment benefits. 2. A tax in which the tax rate increases as the taxable amount increases A) Progressive. B) Regressive. C) Flat. D) Proportional. Show Answer Correct Answer: A) Progressive. 3. The national income is A) NNP at factor cost. B) NNP at market price. C) GNP at market price. D) GNP at factor cost. Show Answer Correct Answer: A) NNP at factor cost. 4. The total of all planned expenditures in the entire economy A) Stagflation. B) Aggregate Supply. C) Inflation. D) Aggregate Demand. Show Answer Correct Answer: D) Aggregate Demand. 5. Contractionary or Expansionary?To recuperate from the economic recession, John Maynard Keynes moved the US government to spend more. What type of macroeconomic policy is being described in this case? A) Contractionary. B) Expansionary. Show Answer Correct Answer: B) Expansionary. 6. TRUE or FALSE:A motor vehicle manufactured in the United States but sold in Europe would represent an addition to the gross domestic product of the United States. A) TRUE. B) FALSE. Show Answer Correct Answer: A) TRUE. 7. Net Domestic Product (NDP) is Gross Domestics Products (GDP) adjusted by inflation. A) True. B) False. Show Answer Correct Answer: B) False. 8. An organization that seeks to improve working conditions and pay A) Labor Union. B) Collective Bargaining. C) Cooperative. D) Business Franchise. Show Answer Correct Answer: A) Labor Union. 9. A system of taxation where one tax rate is applied to all personal income with no deductions A) Flat rate / proportional tax. B) Progressive taxation. C) Regressive taxation. D) Direct taxation. Show Answer Correct Answer: A) Flat rate / proportional tax. 10. Who finds the best talent for Hollywood? A) Dwayne Johnson. B) Bob Namvar. C) United Talent Agency. D) Bob Bob Bob. Show Answer Correct Answer: B) Bob Namvar. 11. Match the following description with the factor that impacts growth in developing nations:Embargoes or sanctions imposed on North Korea has made it tough for them to develop. A) Geography and Natural Resources. B) Free Trade. C) Investments in Human Capital. D) Cultural Beliefs. Show Answer Correct Answer: B) Free Trade. 12. Is the monetary policy making body of the Federal Reserve System. A) The Federal Open Market Committee (FOMC). B) Board of Banks. C) Governor of Georgia. D) None of above. Show Answer Correct Answer: A) The Federal Open Market Committee (FOMC). 13. Kendall makes $ 40, 000 per year and has a tax rate of 20%. Kaitlin makes $ 150, 000 per year and has a tax rate of 30%. What type of tax is this? A) Progressive. B) Regressive. C) Proportional. D) Fair. Show Answer Correct Answer: A) Progressive. 14. TRUE or FALSE:In order to calculate the unemployment rate, Eurostat needs to know how many people are not in the labor force. A) TRUE. B) FALSE. Show Answer Correct Answer: B) FALSE. 15. To expansionary in Fiscal policy is to overcome unemployment and reduces recession, what is fiscal policy used too maintain economics growth? i. Increase in government purchases of goods & services ii. Reduces Taxes iii. Increase in government spending iv. Increase in transfer payment A) I and ii. B) I, ii and iii. C) Ii, iii and iv. D) All of the above. Show Answer Correct Answer: D) All of the above. 16. Which statement about industrial policy is incorrect? A) It includes temporarily imposing trade barriers on key sectors, such as manufacturing. B) It includes the use of tax cuts aimed at specific industries. C) It includes improving the geographical and occupational mobility of labor. D) It is harmful if the government lacks the necessary information to promote certain sectors. Show Answer Correct Answer: C) It includes improving the geographical and occupational mobility of labor. 17. Suppose at the federal reserve bank announces that it will be making a change to a key interest rate to increase the money supply. This is likely because A) The federal reserve bank is worried about inflation. B) The federal reserve bank is worried about unemployment. C) The federal reserve bank is hoping to reduce the demand for goods and services. D) The federal reserve bank is worried that economy is going too quickly. E) The federal reserve bank is worried that the federal government will engage in fiscal policy. Show Answer Correct Answer: B) The federal reserve bank is worried about unemployment. 18. An increase in costs will A) Shift aggregate demand. B) Shift aggregate supply. Show Answer Correct Answer: B) Shift aggregate supply. 19. Promissory notes issued by firms when they borrow money. A) Treasury bills. B) Corporate bonds. C) Dividends. D) Issuing stocks. Show Answer Correct Answer: B) Corporate bonds. 20. When the economy is "overheating", the Fed will often ..... A) Decrease discount rates. B) Decrease the reserve requirement. C) Increase discount rates. D) Stay the course. Show Answer Correct Answer: C) Increase discount rates. ← 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