This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Macroeconomics – Quiz 168 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 168 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Any arrangement that allows buyers and sellers to exchange things A) Deal. B) Market. C) Trade. D) Sale. Show Answer Correct Answer: B) Market. 2. Choose the Best Answer.Looking at the Gini coefficient schedule, the hypothetical national economy has the most desirable income distribution in what year? A) 2002. B) 2010. C) 2007. D) 2006. Show Answer Correct Answer: A) 2002. 3. A good in which the quantity demanded falls as income rises, and in which quantity demanded rises an income falls Ex:ramen noodles, spam, spaghetti-os A) Substitute good. B) Complement good. C) Inferior good. D) Normal good. Show Answer Correct Answer: C) Inferior good. 4. The government borrows money to cover any deficits it runs by A) Increasing taxes. B) Borrowing money from banks. C) Borrowing money from the federal government. D) Issuing bonds. Show Answer Correct Answer: D) Issuing bonds. 5. When taxes decrease, consumption A) Increases, so aggregate demand shifts right. B) Increases, so aggregate supply shifts right. C) Decreases, so aggregate demand shifts left. D) Decreases, as aggregate supply shifts left. Show Answer Correct Answer: A) Increases, so aggregate demand shifts right. 6. Circular flow model A) A model that shows the flow of goods and services and the interaction among households, businesses, and banks. B) A property of an efficient market whereby all goods and services are optimally distributed among buyers in an economy. C) TRICE-Technology (can both increase or decrease the curve), Related Prices (substitutes/compliments), Input prices, Competition, Expectations. D) The ability to produce more of a given product using a given amount of resources. Show Answer Correct Answer: A) A model that shows the flow of goods and services and the interaction among households, businesses, and banks. 7. TRUE or FALSE:A rise in unemployment associated with a recession would be classified as cyclical unemployment. A) TRUE. B) FALSE. Show Answer Correct Answer: A) TRUE. 8. Results from time spent between jobs when a worker is searching for, or transitioning from one job to another A) Frictional Unemployment. B) Cyclical Unemployment. C) Seasonal Unemployment. D) Structural Unemployment. Show Answer Correct Answer: A) Frictional Unemployment. 9. What will result in the federal government continuing to create a budget deficit? A) State governments will thrive. B) GDP will decrrease. C) Interest rates will decline. D) National debt will increase. Show Answer Correct Answer: D) National debt will increase. 10. Market competitors are least likely to use advertising as a tool of differentiationin an industry structure identified as: A) Monopoly. B) Perfect competition. C) Monopolistic competition. D) None of above. Show Answer Correct Answer: B) Perfect competition. 11. It is the percentage of the tax that has to be paid by the taxpayer. A) Tax base. B) Tax rate. C) Progressive tax. D) Regressive tax. Show Answer Correct Answer: B) Tax rate. 12. Who must legally pay Social Security and Medicare taxes? A) Employers. B) Employees. C) Both employers and employees. D) Neither employers nor employees. Show Answer Correct Answer: C) Both employers and employees. 13. Transfer payments A) Indicators. B) Consumption. C) Nominal GDP. D) Transfer expenses. Show Answer Correct Answer: D) Transfer expenses. 14. Is this counted in the GDP of the US?The services of a mechanic in fixing the radiator on his own car. A) Yes. B) No. Show Answer Correct Answer: B) No. 15. Match this definition with the correct Mixed Economic System: "Ownership of factors and resources of production is split; there is some private ownership, but the government may own some factors in order to provide for a few basic needs of their citizens." A) Capitalism. B) Communism. C) Socialism. D) I give up. Show Answer Correct Answer: C) Socialism. 16. A fully anticipated expansionary fiscal policy will cause the price level and real output to change in which of the following ways in the long run? (1) Price Level-(2) Real Output A) Increase-(2) Increase. B) Increase-(2) Not change. C) Not change-(2) Not change. D) Decrease-(2) Increase. E) Decrease-(2) Decrease. Show Answer Correct Answer: B) Increase-(2) Not change. 17. How is aggregate demand calculated? A) By adding together the total spending on goods and services in an economy over a specific period of time. B) By multiplying the total spending on goods and services in an economy over a specific period of time. C) By dividing the total spending on goods and services in an economy over a specific period of time. D) By subtracting the total spending on goods and services in an economy over a specific period of time. Show Answer Correct Answer: A) By adding together the total spending on goods and services in an economy over a specific period of time. 18. Unemployed because their human capital does not match the needs of employers hiring in the labor market A) Cyclical. B) Seasonal. C) Frictional. D) Structural. Show Answer Correct Answer: D) Structural. 19. Predicting how an increase in the price of pizza will affect the total revenue of a pizza restaurant A) Macroeconomics. B) Microeconomic. Show Answer Correct Answer: B) Microeconomic. 20. The United States limits the annual amount of raw cotton coming into the country from other nations. This is an example of A) A licensing fee. B) An embargo. C) A VER. D) An import quota. Show Answer Correct Answer: D) An import quota. ← 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