This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Macroeconomics – Quiz 171 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 171 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. E = nominal exchange rate A) Relative price of domestic currency in terms of foreign currency. B) Relative price of foreign currency in terms of domestic currency. Show Answer Correct Answer: A) Relative price of domestic currency in terms of foreign currency. 2. A company or person who makes things. A) Goods. B) Services. C) Producer. D) Consumer. Show Answer Correct Answer: C) Producer. 3. The sale of a used automobile would not be included in GDP of the current year because it is a: A) Nonmarket transaction. B) Nonproduction transaction. C) Purely financial transaction. D) Private transfer payment. Show Answer Correct Answer: B) Nonproduction transaction. 4. When the FED is conducting open market operations, they are buying or selling A) Government bonds. B) Goods in the product market. C) Factors in the factor market. D) Stocks on the New York Stock Exchange. Show Answer Correct Answer: A) Government bonds. 5. The FED Bank reserve system A) Tells banks how much they SHOULD loan. B) Tells banks what they must charge for interest. C) Tells bank how much they must keep in their ATM's. D) Tells banks how much must be in their vaults at all times. Show Answer Correct Answer: D) Tells banks how much must be in their vaults at all times. 6. When the spread between 10-year US Treasury yields and the federal fundsrate narrows and at the same time the prime rate stays unchanged, this mix ofindicators most likely forecasts future economic: A) Growth. B) Decline. C) Stability. D) None of above. Show Answer Correct Answer: B) Decline. 7. Monetary policy A) How the government uses taxes and spending to reach economic goals. B) Interest rate that the Fed charges on its loans to member banks. C) Manipulation of the money supply in attempts to keep the economy stable; implemented by the Federal Reserve. D) Spending for federal programs that must receive approval each year. Show Answer Correct Answer: C) Manipulation of the money supply in attempts to keep the economy stable; implemented by the Federal Reserve. 8. Fiscal Policy is the means by which the government keeps the economy stable through taxes and programs provided to the people. A) True. B) False. Show Answer Correct Answer: A) True. 9. According to the ....., the interest rate is determined by the supply and demand for money. A) Liquidity Preference Model of the Interest Rate. B) Illiquidity Preference Model of the Interest Rate. C) Supply and Demand Model of the Interest Rate. D) None of above. Show Answer Correct Answer: A) Liquidity Preference Model of the Interest Rate. 10. Why is zero percent unemployment not our goal? A) Because people will always be between jobs or replaced by technology. B) The amount of employment that exists when the economy is healthy and growing. C) If people leave the labor force, the unemployment rate falls. D) Some people are no longer looking for a job because they have given up. Show Answer Correct Answer: A) Because people will always be between jobs or replaced by technology. 11. When a good has a price floor, what occurs? A) There is a surplus of available goods . B) The supply of goods remains constant. C) There is a shortage of available goods. D) The quantity demanded is equal to the quantity supplied. Show Answer Correct Answer: A) There is a surplus of available goods . 12. We humans have a brain that has unlimited wants, but we live in a world of limited resources. This is known as: A) Amygdalaian response. B) Brevity. C) Scarcity. D) Life-style. Show Answer Correct Answer: C) Scarcity. 13. Which one of the following people would NOT be classified as unemployed according to Eurostat? A) Someone in the labor force who has just involuntarily lost their job, and is actively searching for a new one. B) Someone in the labor force who has just quit a job, and is actively searching for a new one. C) Someone who has just started actively searching for a job after graduating from college. D) Someone working 20 hours per week in a family business but is not being paid. E) Someone who took time off to raise a child and has just started actively searching for a job. Show Answer Correct Answer: D) Someone working 20 hours per week in a family business but is not being paid. 14. If the rate of inflation rises above their target level what does the Federal Reserve do? A) Increasing bond prices. B) They put more money into circulation. C) Decreases interest rates. D) They take excess money out of circulation. Show Answer Correct Answer: D) They take excess money out of circulation. 15. The government's act of buying bonds is used to ..... A) Fight recession. B) Stop inflation. Show Answer Correct Answer: A) Fight recession. 16. Assume that the United States current account balance is zero. If the United States dollar appreciates against the Japanese yen, then demand for United States exports will A) Increase and result in a deficit in the United States financial account. B) Increase and result in a surplus in the United States financial account. C) Decrease and result in a surplus in the United States financial account. D) Decrease and result in a deficit in the United States financial account. E) Remain unchanged because the surplus in the current account will be offset by the deficit in the financial account. Show Answer Correct Answer: C) Decrease and result in a surplus in the United States financial account. 17. Macroeconomis could be defined as ..... A) The part of economics concerned with large-scale or general economic factors and policies that affected millions of people. B) Is the study of what is likely to happen (tendencies) when individuals make choices in response to changes in incentives, prices, resources, and/or methods of production. Show Answer Correct Answer: A) The part of economics concerned with large-scale or general economic factors and policies that affected millions of people. 18. The Fed keeps a certain amount of money out of circulation. This is referred to as ..... A) Reserve requirement. B) Emergency Fund. C) Stockpile. D) Hoard. Show Answer Correct Answer: A) Reserve requirement. 19. In economics allocation means ..... A) The process by which economic resources get allotted (apportioned, assigned) to their particular uses for directly or indirectly satisfying human wants. B) The process by which economic resources get allotted (apportioned, assigned) for general uses for directly or indirectly satisfying human wants. Show Answer Correct Answer: A) The process by which economic resources get allotted (apportioned, assigned) to their particular uses for directly or indirectly satisfying human wants. 20. The market value of all the final goods and services produced within a country in a given time period. A) Gross Domestic Product. B) Net exports of goods and services. C) Nominal GDP. D) Real GDP. Show Answer Correct Answer: A) Gross Domestic Product. ← 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