This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Macroeconomics – Quiz 17 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 17 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Brandon hires a polling and data firm to research the income levels of people living in three zip codes in San Antonio. What basic economic question is he seeking an answer to? A) For whom to produce?. B) What to produce?. C) How to produce?. D) How much to produce?. Show Answer Correct Answer: A) For whom to produce?. 2. If GDP falls for at least two quarters, it is considered what stage of the business cycle? A) Expansion. B) Recession. C) Prosperity. D) Recovery. Show Answer Correct Answer: B) Recession. 3. CAR PURCHASED BY A CAR DEALER FOR RESALE A) CONSUMER GOOD. B) CAPITAL GOOD. C) INTERMEDIATE GOOD. D) FINAL GOOD. Show Answer Correct Answer: C) INTERMEDIATE GOOD. 4. Measuring the sum total of all factor payments will be called, A) Product method. B) Expenditure method. C) Output method. D) Income method. Show Answer Correct Answer: D) Income method. 5. Macroeconomics distinguishes the real economy and the ..... A) Monetary economy. B) Virtual economy. C) Normative economy. D) Underground economy. Show Answer Correct Answer: A) Monetary economy. 6. Economists use ..... to estimate the contribution of each major factor in the aggregate production function to economic growth. A) Growth Accounting. B) Contraction Accounting. C) Inflation Accounting. D) Deflation Accounting. Show Answer Correct Answer: A) Growth Accounting. 7. What is the formula for calculating the GDP of a country? A) C-I-GxNX= GDP. B) CxIxGxNX= GDP. C) C+I+G+NX= GDP. D) C-I+G+NX= GDP. Show Answer Correct Answer: C) C+I+G+NX= GDP. 8. The Federal Reserve has three primary goals. What does it mean to have full employment? A) To control inflation. B) To ensure maximum employment. C) To increase production output. D) None of above. Show Answer Correct Answer: B) To ensure maximum employment. 9. The economy of Franklandia has invested in research and development of new technologies and production methods. In the long run, how would this be illustrated on the AS/AD model? A) Economic growth and a rightward shift of AD. B) Economic growth and a rightward shift of SRAS. C) A recessionary gap and a rightward shift of LRAS. D) Economic growth and a rightward shift of LRAS. E) An inflationary gap and a rightward shift of SRAS. Show Answer Correct Answer: D) Economic growth and a rightward shift of LRAS. 10. A business where shareholders have limited liability and majority shareholders run the business as chief officers ..... A) Partnership. B) Sole proprietorship. C) Corporation. D) Pure or Perfect Market competition. Show Answer Correct Answer: C) Corporation. 11. Hyperinflation is typically caused by ..... A) High tax rates that discourage work effort. B) Continuous expansion of the money supply to finance budget deficits. C) Bad harvests that lead to widespread shortages. D) Large decline in corporate profits that leads to a decrease in production. Show Answer Correct Answer: B) Continuous expansion of the money supply to finance budget deficits. 12. Taxing & increasing government spending to help the economy grow is referred to as A) Expansionary policy. B) Monetary policy. C) Contractionary policy. D) Budget deficit. Show Answer Correct Answer: A) Expansionary policy. 13. Government bonds are also known as government ..... ? A) Securities. B) Inflation. C) Deficit. D) Surplus. Show Answer Correct Answer: A) Securities. 14. The ..... runs from October 1 to September 30 and is labeled according to the calendar year in which is ends. A) Fiscal Year. B) Money Year. C) Calendar Year. D) Government Year. Show Answer Correct Answer: A) Fiscal Year. 15. What is defined as countries becoming more open to foreign trade and investment? A) Isolationism. B) Exchange Rate Policy. C) Embargo. D) Globalization. Show Answer Correct Answer: D) Globalization. 16. Which group is included in the unemployment rate? A) Retired adults. B) High school and college students. C) Laid-off workers looking for jobs. D) Disabled adults. Show Answer Correct Answer: C) Laid-off workers looking for jobs. 17. How can the fed use the required reserve to increase the money supply? A) They can decrease the required reserve. B) They can increase the required reserve. C) They can loan out the required reserve. D) The required reserve does not influence the supply of money. Show Answer Correct Answer: A) They can decrease the required reserve. 18. What are the two tools of fiscal policy the federal government uses to influence the economy? A) Increasing or decreasing the reserve requirement or discount rate. B) Increasing or decreasing the reserve requirement or interest on reserves. C) Increasing or decreasing taxes and spending. D) Buying and selling bonds or increasing or decreasing the discount rate. Show Answer Correct Answer: C) Increasing or decreasing taxes and spending. 19. Per Capita Income is: A) All wrong. B) Income which views the value of economic output as the total value of compensation for production factors used in the production process. C) The average income of a country's residents at a given time. D) National income is calculated by adding up the production of goods and services for one year. E) The remaining deduction from costs or raw material prices is deducted from the selling price of the company's products. Show Answer Correct Answer: C) The average income of a country's residents at a given time. 20. Fiscal policy is the policy of ..... A) Central bank. B) Government. C) Commercial bank. D) All of these. Show Answer Correct Answer: B) Government. ← 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