This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Macroeconomics – Quiz 166 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 166 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Net investment is equal to: A) Gross investment + depreciation. B) Gross investment-depreciation. C) Gross investment x depreciation. D) Gross investment / depreciation. Show Answer Correct Answer: B) Gross investment-depreciation. 2. If the government brings in more tax revenue than it spends, this will create a ..... A) Budget surplus. B) Budget deficit. C) Trade surplus. D) Trade deficit. Show Answer Correct Answer: A) Budget surplus. 3. When no individual would be better off doing something different, this is called ..... ? A) Equilateral. B) Equator. C) Equilibrium. D) Equity. Show Answer Correct Answer: C) Equilibrium. 4. Which of the following is a part of Investment in macroeconomics? A) Buying groceries. B) Purchasing machinery for a factory. C) Paying rent for an apartment. D) Spending on healthcare. Show Answer Correct Answer: B) Purchasing machinery for a factory. 5. Which of these is NOT an accurate statement about banking regulation? A) From the Mid-1990s until the global financial crisis of 2007-9, in many countries, the financial sector was increasingly deregulated. B) The European Central Bank has been given the responsibility to supervise banks. C) After the global financial crisis of 2007-9, the financial sector in the EU was further deregulated. D) In the US, the Glass-Steagall act originally separated investment banks from retail banks. E) All of these statements are accurate. Show Answer Correct Answer: C) After the global financial crisis of 2007-9, the financial sector in the EU was further deregulated. 6. The main advantages of a monetary system of exchange compared to a barter system is the increased ..... A) Efficiency in arranging transactions. B) Ability to record transactions. C) Time necessary to find trading partners. D) Time devoted to shopping. Show Answer Correct Answer: A) Efficiency in arranging transactions. 7. An engine used in the final production of a car is said to be a ..... in terms of GDP? A) Final Good. B) Intermediate Good. C) Second Hand Good. D) Luxury Item. Show Answer Correct Answer: B) Intermediate Good. 8. Efficiency means that A) Society is conserving resources in order to save them for the future. B) Society's goods and services are distributed equally among societies members. C) Society's goods and services are distributed fairly, though not necessarily equally, among societies members. D) Society is getting maximum benefits from its scarce resources. E) Society is getting the minimum benefits from its scarce resources. Show Answer Correct Answer: D) Society is getting maximum benefits from its scarce resources. 9. In the US today, the dollar is considered to be ..... A) Fiat Money. B) Commodity Money. C) Commodity-Backed Money. D) Cryptocurrency. Show Answer Correct Answer: A) Fiat Money. 10. Which of the following is true of the meaning of a government budget deficit? A) Government revenue equals government expenditure. B) Government revenue is greater than government expenditure. C) Government revenue is less than government expenditure. D) All the points are correct. Show Answer Correct Answer: C) Government revenue is less than government expenditure. 11. Dave has gone back to school to learn computer programming. Dave's investment in ..... should increase his own labor productivity. A) Physical capital. B) Technology. C) Human capital. D) Financial capital. E) Environmental capital. Show Answer Correct Answer: C) Human capital. 12. The opportunity cost of producing an additional unit of product A is A) All of the human and capital resources used to produce product A. B) The retail price paid for product A. C) The amount of product B that cannot now be produced because of product A. D) The profit that was earned from producing product A. Show Answer Correct Answer: C) The amount of product B that cannot now be produced because of product A. 13. Monetary Policy is the use of interest rates by the central bank to keep the economy stable. A) True. B) False. Show Answer Correct Answer: A) True. 14. Imagine that influential financial experts start to warn of a severe upcoming financial crisis. Which of the following will likely occur? A) Stock market decline and decrease in consumer spending. B) Decrease in consumer spending and increase in the stock market. C) Stable stock market and increase in consumer confidence. D) Increase in consumer spending and stock market growth. Show Answer Correct Answer: A) Stock market decline and decrease in consumer spending. 15. In a closed economy, ..... is not included? A) Households. B) Firms. C) Government. D) Foreign sector. Show Answer Correct Answer: D) Foreign sector. 16. Who controls the factors of production in a planned economy? A) Government. B) Classes. C) Individuals. D) Oligarchs. Show Answer Correct Answer: A) Government. 17. Suppose autonomous consumption is $ 20, investment is $ 30, government expenditure is 40, net exports 10. Assume the mpc=0.7 and the tax rate=0.2. What is the value of the multiplier for the open economy? A) Multiplier = 1/1-b. B) Multiplier = 1/1-b(1-t) + m. C) Multiplier = 2.27. D) Multiplier = 3.33. Show Answer Correct Answer: C) Multiplier = 2.27. 18. Examples of direct taxes do not include A) New car registration tax. B) Capital gains tax. C) Income tax. D) Inheritance tax. Show Answer Correct Answer: A) New car registration tax. 19. How does unemployment impact the overall economy? A) Unemployment reduces government spending on unemployment benefits. B) Unemployment leads to an increase in consumer spending. C) Unemployment impacts the overall economy by reducing consumer spending, decreasing tax revenue, and increasing government spending on unemployment benefits. D) Unemployment has no impact on the overall economy. Show Answer Correct Answer: C) Unemployment impacts the overall economy by reducing consumer spending, decreasing tax revenue, and increasing government spending on unemployment benefits. 20. Yesenia stopped at her favorite pizza place and ordered a slice of pizza. She paid the cashier $ 2.50 for the pizza and sat down to eat it. What role did money serve in this situation? A) It was a medium of exchange. B) It was a store of value. C) It was a standard of value. D) It was a unit of account. Show Answer Correct Answer: A) It was a medium of exchange. ← 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