This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Macroeconomics – Quiz 169 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 169 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The Income Approach of Calculating GDP includes ..... A) All spending on final products in the year. B) All Income made factors of production. C) All costs on all products. D) The ammount of people involved in production. Show Answer Correct Answer: B) All Income made factors of production. 2. A business owner who prefers to maintain complete control of all business activities might consider structuring the venture as a(n) A) Sole proprietorship. B) General partnership. C) Franchise. D) Corporation. Show Answer Correct Answer: A) Sole proprietorship. 3. Assume the reserve requirement is five percent. If the Fed sells $ 10 million worth of government securities in the open market operation, then the money supply can potentially A) Increase by $ 200 million. B) Decrease by $ 200 million. C) Increase by $ 50 million. D) Decrease by $ 50 million. E) Increase by $ 150 million. Show Answer Correct Answer: B) Decrease by $ 200 million. 4. Tax on money or property that one living person gives to another. A) Estate tax. B) Gift tax. C) Property tax. D) Income tax. Show Answer Correct Answer: B) Gift tax. 5. Everything else held constant, a decrease in holdings of excess reserves will mean A) A decrease in the money supply. B) An increase in the money supply. C) A decrease in checkable deposits. D) An increase in discount loans. Show Answer Correct Answer: B) An increase in the money supply. 6. What does the Consumer Price Index (CPI) measure? A) Changes in the price of a specific product over time. B) Changes in the price of all goods and services over time. C) Changes in the purchasing power of consumers over time. D) Changes in the inflation rate over time. Show Answer Correct Answer: A) Changes in the price of a specific product over time. 7. When people change jobs or enter the workforce, this is: A) Seasonal Unemployment. B) Cyclical Unemployment. C) Frictional Unemployment. D) Structural Unemployment. Show Answer Correct Answer: C) Frictional Unemployment. 8. What causes inflation? A) Inflation occurs when there's an increase in production costs OR when demand for products and services increases faster than supply. B) Inflation occurs when there's an increase in production costs OR when demand for products and services increases slower than supply. C) Inflation occurs when there's a slower increase in production costs OR when demand for products and services increases faster than supply. D) None of above. Show Answer Correct Answer: A) Inflation occurs when there's an increase in production costs OR when demand for products and services increases faster than supply. 9. This term refers to the original amount of a loan OR the original amount of money invested. A) Principal. B) Interest. C) Rebate. D) Fixed Rate. Show Answer Correct Answer: A) Principal. 10. Everything else held constant A) Ceteris Paribus. B) Law of demand. C) Non-price determinants of demand. D) Non-price determinants of supply. Show Answer Correct Answer: A) Ceteris Paribus. 11. A macroeconomist who won Nobel Prize in Economics is- A) Adam Smith. B) J. M. Keynes. C) Milton Friedman. D) David Ricardo. Show Answer Correct Answer: C) Milton Friedman. 12. Someone without a job, but looking A) Frictional Unemployment. B) Structural Unemployment. C) Discouraged Workers. D) Unemployed. Show Answer Correct Answer: D) Unemployed. 13. A form of socialism that abolishes private ownership A) Communism. B) Capitalism. C) The "New" Socialism. D) Dictatorship. Show Answer Correct Answer: A) Communism. 14. How many regional banks are in the Federal Reserve System? A) 12. B) 8. C) 50. D) 1. Show Answer Correct Answer: A) 12. 15. Food processor used by the households in the 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. 16. Unemployment caused by an imbalance between the skills of workers and the requirements of employers A) Employed. B) Structural unemployment. C) Frictional unemployment. D) Voluntary unemployment. E) Cyclical unemployment. Show Answer Correct Answer: B) Structural unemployment. 17. What do we call a measurement, like GDP, that has been adjusted for inflation? A) Real. B) Nominal. C) Current. D) Depreciated. E) Equilibrium. Show Answer Correct Answer: A) Real. 18. What is crowding out? A) An decrease in consumption due to higher interest rates from expansionary fiscal policy. B) A decrease to net exports due to higher interest rates from expansionary fiscal policy. C) A decrease to investment due to higher interest rates from expansionary fiscal policy. D) None of above. Show Answer Correct Answer: C) A decrease to investment due to higher interest rates from expansionary fiscal policy. 19. What are the 3 economic questions? A) What to produce? How To Produce? For whom to produce?. B) Who to produce? Why you produce? Like to produce?. C) Why to produce? Tell who to produce? Things to produce?. D) What to produce? How to produce? When to produce?. Show Answer Correct Answer: A) What to produce? How To Produce? For whom to produce?. 20. In 2019 the GDP of the USA was about? A) 20 billion. B) 20 trillion. C) 20 million. D) 100 billion. Show Answer Correct Answer: B) 20 trillion. ← 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