This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Macroeconomics – Quiz 170 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 170 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Business cycle is discussed in the long run framework of macroeconomics A) True. B) False. Show Answer Correct Answer: B) False. 2. The government begins funding training programs to teach computer repair and website design. Which kind of unemployment would this training help? A) Seasonal unemployment. B) Structural unemployment. C) Cyclical unemployment. D) Frictional unemployment. Show Answer Correct Answer: B) Structural unemployment. 3. The ..... is the basket of typical household goods and services A) Gross Domestic Product (GDP). B) Consumer Price Index (CPI). C) Monetary Index. D) Inflation rate. Show Answer Correct Answer: B) Consumer Price Index (CPI). 4. The central bank regulates the monetary system. A) True. B) False. Show Answer Correct Answer: A) True. 5. True or False:By world standards, the U.S. government controls a relatively large share of the U.S. economy. A) True. B) False . Show Answer Correct Answer: A) True. 6. Sustained increase in the price level in an economy over time. A) Inflation. B) Stagflation. C) Deflation. D) Recession. Show Answer Correct Answer: A) Inflation. 7. Which of the following is a final good? A) Milk. B) Vegetable. C) Vegetable purchased. D) Milk purchased by a house hold. Show Answer Correct Answer: D) Milk purchased by a house hold. 8. Which of the following is NOT associated with Economic Growth? A) Increasing worker productivity. B) New firms popping up. C) Improving air quality across the mainland. D) Increase in quantity of productive resources. Show Answer Correct Answer: C) Improving air quality across the mainland. 9. Which of the following could cause the shift shown in the above Keynesian cross diagram? A) An increase in government spending. B) A increase in (lump-sum) taxes. C) An increase in government transfer payments. D) An increase in autonomous consumption. E) None of the above. Show Answer Correct Answer: B) A increase in (lump-sum) taxes. 10. Money multiplier (m)= A) $\frac{cr+1}{cr\ +rr}$. B) $\frac{cr+1}{cr-rr}$. C) $\frac{rr+1}{cr+rr}$. D) $\frac{cr+1}{cr-rr}$. Show Answer Correct Answer: A) $\frac{cr+1}{cr\ +rr}$. 11. Currencies are traded in the ..... The prices at which currencies trade are known as ..... A) Foreign Exchange Market; Exchange Rates. B) Merchandise Trade Balance; Trade Balance. C) Currency Market; Exchange Rates. D) Currency Exchange Market; Currency Rates. Show Answer Correct Answer: A) Foreign Exchange Market; Exchange Rates. 12. The main factor that differentiates gross national product from net national product is ..... A) Net investment. B) Gross investment. C) Depreciation. D) Net factor income from abroad. Show Answer Correct Answer: D) Net factor income from abroad. 13. An unanticipated increase in aggregate demand will result in all of the following, except: A) Increase in output. B) Increase in labor wages. C) Decreased input. D) Rising interest rates. Show Answer Correct Answer: C) Decreased input. 14. In a recession, the Fed would likely A) Increase the supply of money in the economy. B) Decrease the supply of the money in the economy. Show Answer Correct Answer: A) Increase the supply of money in the economy. 15. How does the government finance budget deficits? A) The Federal Reserve creates new money. B) It issues debt to government agencies; private institutions, and private investors. C) It is primarily financed by foreign investors. D) It does nothing to finance budget deficits. Show Answer Correct Answer: B) It issues debt to government agencies; private institutions, and private investors. 16. The main objective of calculating economic growth is A) Increase inflation. B) See progress in economic conditions. C) Improve the welfare of the people. D) Reducing unemployment. Show Answer Correct Answer: B) See progress in economic conditions. 17. A bilateral trade agreement involves: A) All countries and is overseen by the WTO. B) Only two goods, one from each country. C) Two countries agreeing to reduce trade barriers. D) Two companies agreeing to reduce trade barriers. Show Answer Correct Answer: C) Two countries agreeing to reduce trade barriers. 18. Identify the stock variable. A) Wealth. B) Income. C) Savings. D) Capital Formation. Show Answer Correct Answer: A) Wealth. 19. In the business cycle an expansion is ..... A) A period where the economy hits the bottom of the contractionary phase. B) A period where the economy reaches its highest point and begins to decline. C) A period of recovery from a recession and increased economic growth. D) A period of economic decline and rise in unemployment. Show Answer Correct Answer: C) A period of recovery from a recession and increased economic growth. 20. Lois and Lora plan to open a florist shop. Lois is unable to devote full time to the daily operations of the shop but wishes to provide financial support. Which form of business partnership is most likely to appeal to Lois? A) Private. B) Nonprofit. C) General. D) Limited. Show Answer Correct Answer: D) Limited. ← 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