This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Macroeconomics – Quiz 167 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 167 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The productivity of labor in an economy does not automatically increase by A) Raising the skills base of labor. B) Reducing the search costs of employment. C) Creating incentives to improve labor mobility. D) Increasing the population size. Show Answer Correct Answer: D) Increasing the population size. 2. The..... occurs because there are transactions with insufficient data or information resources. A) Government Spending. B) Total National Income. C) Statistical Discrepancy. D) Gross National Product. Show Answer Correct Answer: C) Statistical Discrepancy. 3. What is a federal budget deficit? A) All the debt owed by the federal government. B) When government spends more than it brings in. C) When government spends the same amount it brings in. D) Value of all goods and services produced in a country. Show Answer Correct Answer: B) When government spends more than it brings in. 4. National income must be at its equilibrium level when A) Imports equal exports. B) Savings equal investment. C) Injections equal withdrawals. D) Government revenue equals government expenditure. Show Answer Correct Answer: C) Injections equal withdrawals. 5. How does reducing direct taxes on firms affect their international competitiveness? A) Less competitive. B) No change. C) More competitive. D) None of above. Show Answer Correct Answer: C) More competitive. 6. A country has a slow rate of growth of productivity and rising cyclical unemployment. All other things being equal, which measures are most likely to increase the rate of growth of productivity and reduce cyclical unemployment? A) Increased investment and increased saving. B) More government spending on training and a higher exchange rate. C) Decreased benefit payments and a lower budget deficit. D) Lower taxation on firms and lower interest rates. Show Answer Correct Answer: D) Lower taxation on firms and lower interest rates. 7. Which is a likely effect of increasing tariffs on imported cars? A) The price consumers pay for imported cars will rise. B) Unemployment rates will decrease. C) Car production will decline. D) More cars will be exported. Show Answer Correct Answer: A) The price consumers pay for imported cars will rise. 8. The sum of consumer surplus and producer surplus A) Social surplus. B) Consumer surplus. C) Producer surplus. D) Demand. Show Answer Correct Answer: A) Social surplus. 9. Change in quantity demanded due to a change in price that alters a consumers real income A) Elasticity. B) Inelastic. C) Income effect. D) Total expenditures. Show Answer Correct Answer: C) Income effect. 10. A defensive expenditure is defined as ..... A) An expenditure that decreases human welfare. B) An expenditure that fails to provide long-term investment benefits. C) An expenditure that increases human welfare. D) An expenditure that only provides long-term benefits. E) An expenditure that maintains the status quo. Show Answer Correct Answer: E) An expenditure that maintains the status quo. 11. Food processor used by the households in their kitchen is an example of: A) Capital goods. B) Intermediate goods. C) Consumption goods. D) None of these. Show Answer Correct Answer: C) Consumption goods. 12. Which of the following would be an example of an intermediate good or service? A) A calculator purchased by a college student for taking exams. B) Gasoline purchased by an insurance agent to visit clients at their homes. C) A car purchased by a student's parents and given to the student. D) Tuition paid by a student at a state university. Show Answer Correct Answer: B) Gasoline purchased by an insurance agent to visit clients at their homes. 13. Read the text and answer the question.In 2017, Congress passed the Tax Cuts and Jobs Act. The law reduced income tax rates and increased standard deductions.What was the Tax Cuts and Jobs Act an example of? A) Contractionary fiscal policy. B) Expansionary fiscal policy. C) Contractionary monetary policy. D) Expansionary monetary policy. Show Answer Correct Answer: D) Expansionary monetary policy. 14. Previously one dollar was equal to 69 rupees, now the value of one dollar is equal to 85 rupees. What happens to value of rupee A) Depreciated. B) Appreciated. C) Remained same. D) None of the above. Show Answer Correct Answer: A) Depreciated. 15. If a car is purchased by a taxi-operator, it will be regarded as a: A) Capital good. B) Intermediate good. C) Final good. D) Both (a) and (c). Show Answer Correct Answer: D) Both (a) and (c). 16. The cost of every choice we make is called A) True choice. B) Auto trade-in. C) Monetary trade policy. D) A trade-off. Show Answer Correct Answer: D) A trade-off. 17. Monetary and fiscal policies have to do with ..... A) Macroeconomics. B) Microeconomics. Show Answer Correct Answer: A) Macroeconomics. 18. The Fed does not A) Print money. B) Regulate banks. C) Serve as a lender of last resort. D) Control the money supply. Show Answer Correct Answer: A) Print money. 19. According to Dusenberry, income-consumption relations are A) Reversible. B) Irreversible. C) Independent. D) None of these. Show Answer Correct Answer: B) Irreversible. 20. Which of the following household purchases will be counted as part of gross private investment in a country's gross domestic product? A) Government bonds. B) Shares of a company stock. C) Corporate bonds. D) A new car for personal use. E) A newly constructed home. Show Answer Correct Answer: E) A newly constructed home. ← 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