This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Macroeconomics – Quiz 172 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 172 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. GDP is calculated by A) Adding up the cost of goods used in producing the item. B) Subtracting all costs from total revenue. C) Adding consumption + investment +government spending+ (exports sold-imports bought). D) None of above. Show Answer Correct Answer: C) Adding consumption + investment +government spending+ (exports sold-imports bought). 2. Below are the main concerns of Macroeconomics, except A) National Output. B) Inflation. C) Unemployment. D) Aggregate Demand. Show Answer Correct Answer: D) Aggregate Demand. 3. Plants and fertilizer are complements. If the price of fertilizer increases, what will happen in the market for plants? A) Supply increase. B) Supply decrease. C) Demand increase. D) Demand decrease. Show Answer Correct Answer: D) Demand decrease. 4. Diminishing returns to physical capital means that, when the amount of human capital per worker and the state of technology are held fixed, each increase in the amount of physical capital per worker leads to: A) A smaller increase in productivity. B) A decrease in productivity. C) Negative productivity. D) Losses for stockholders. E) A constant increase in productivity. Show Answer Correct Answer: A) A smaller increase in productivity. 5. One indicator of the level of price is..... A) Consumer price index (CPI). B) Producer price index. C) Core inflation. D) All true. Show Answer Correct Answer: D) All true. 6. In the USA, seignorage accounts for about ..... percentage of the US government's budget. A) 0-1%. B) 3-5%. C) 6-8%. D) +10%. Show Answer Correct Answer: A) 0-1%. 7. In discussing the business cycle, an 'expansion' is often referred to as ..... A) Peak. B) Recovery. C) Pre-peak. D) Contraction. Show Answer Correct Answer: B) Recovery. 8. What are the two main sources of inflows of funds to EU, in general? A) Government borrowing and social security contributions. B) Social security taxes and wealth taxes. C) Personal income taxes and corporate taxes. D) Personal income taxes, value added taxes, and social security contributions. E) Government borrowing and personal income taxes. Show Answer Correct Answer: D) Personal income taxes, value added taxes, and social security contributions. 9. A government wishes to stimulate economic activity in its national economy. Which action will assist this? A) Decreasing government investment. B) Decreasing income tax. C) Increasing indirect taxation. D) Increasing interest rates. Show Answer Correct Answer: B) Decreasing income tax. 10. The Civilian Labor Force excludes what type of labor? A) Public. B) Private. C) All. D) Some. Show Answer Correct Answer: B) Private. 11. The reason most businesses exist is the profit motive. A) True. B) False. Show Answer Correct Answer: A) True. 12. Which of the following is most likely to be worried about high inflation? A) A shopkeeper. B) A retired couple on a fixed income. C) A doctor with a suburban practice. D) A factory worker. Show Answer Correct Answer: B) A retired couple on a fixed income. 13. Sharply rising oil prices are most likely to lead to a: A) Negative demand shock. B) Positive demand shock. C) Negative supply shock. D) Positive supply shock. Show Answer Correct Answer: C) Negative supply shock. 14. In market economic systems the price mechanism A) Helps the government to provide services. B) Measures the total value of wealth. C) Makes profit for firms. D) Determines the allocation of resources. Show Answer Correct Answer: D) Determines the allocation of resources. 15. Total dollar value of all final goods and services produced in a nation in a single year A) Consumer Price Index. B) Gross Domestic Product. C) Unemployment Rate. D) Economic Growth. Show Answer Correct Answer: B) Gross Domestic Product. 16. ..... is inflation that is caused by a significant increase in the price of an input with economy-wide importance. A) Cost-Push Inflation. B) Cost-Pull Inflation. C) Demand-Push Inflation. D) Demand-Pull Inflation. Show Answer Correct Answer: A) Cost-Push Inflation. 17. An increase in income tax will cause what change? A) Increase in AD. B) Decrease in AD. C) Increased AS. D) Decrease in AS. Show Answer Correct Answer: B) Decrease in AD. 18. One unintended consequence of unemployment insurance is that it reduces the ..... A) Role of unions in wage setting. B) Amount of frictional unemployment. C) Income uncertainty that workers face. D) Search effort of the unemployed. Show Answer Correct Answer: D) Search effort of the unemployed. 19. How many district banks are there in the Federal Reserve System? A) 6. B) 12. C) 18. D) 24. Show Answer Correct Answer: B) 12. 20. Factor services rendered by the household to the firms leads to A) Real flow. B) Money flow. C) Services flow. D) Both A and C. Show Answer Correct Answer: A) Real flow. ← 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