This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Macroeconomics – Quiz 173 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 173 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Joann has a master's degree in education. She currently works at a local fabric store. How would she be categorized by the BLS? A) Unemployed. B) Underemployed. C) Not in the Labor Force. D) None of above. Show Answer Correct Answer: B) Underemployed. 2. Up until 1998 At & T was the only phone company in America. What type of market structure does this represent? A) Monopoly. B) Oligopoly. C) Pure competition. D) Monolistic competition. Show Answer Correct Answer: A) Monopoly. 3. "the desire of producers to make a profit and consumers to buy products at the lowest cost which ultimately determines market pricing" According to the above passage, which best describes Adam Smith's concept of the "Invisible Hand" ? A) The ideal society that eventually evolves into a command economy like Communism. B) The unseen force directing producers and buyers to determine a market price. Show Answer Correct Answer: B) The unseen force directing producers and buyers to determine a market price. 4. Foreign Trade Effect A) "Sticky Wages" prevents wages from falling. The government should deficit spend to close the gap. B) Price levels effect purchasing power which effects spending. C) When U.S. price levels rise, then GDP decreases due to an increase in imports and a decrease in exports. D) Price levels and economy will fix itself. No Government involvement required. E) When price levels increase, lenders need to charge higher interest rates which decreases consumer and business investment spending. Show Answer Correct Answer: C) When U.S. price levels rise, then GDP decreases due to an increase in imports and a decrease in exports. 5. What are free markets? A) Markets controlled by the government. B) Markets where buyers and sellers can freely trade goods and services. C) Markets where prices are determined by the government. D) Markets with limited choices for consumers. Show Answer Correct Answer: B) Markets where buyers and sellers can freely trade goods and services. 6. The largest single source of revenue for the federal government is the A) Corporate income tax. B) Federal excise tax. C) Personal income tax. D) Social security tax. Show Answer Correct Answer: C) Personal income tax. 7. Which of the following types of unemployment is generally defined as "someone between jobs" ? A) Cyclical unemployment. B) Frictional unemployment. C) Seasonal unemployment. D) Structural unemployment. Show Answer Correct Answer: B) Frictional unemployment. 8. Which of the following items is "The dollar value of all final goods, services, and structures produced within a country's national borders during a 1 year period" ? A) General Determined Production. B) Gross Domestic Product. C) Standard of Living. D) Total Production Output. Show Answer Correct Answer: B) Gross Domestic Product. 9. Money functions as a.....[The function of money is as.....] A) Medium exchange. B) Measure value. C) Store value. D) All of the above [Semua diatas]. Show Answer Correct Answer: D) All of the above [Semua diatas]. 10. Do electrons or protons give a negative charge? A) Electrons. B) Protons. C) Neutrons-Trick question. D) All of the above. Show Answer Correct Answer: A) Electrons. 11. Todd was just laid off from his job due to an economic downturn. What type of unemployment is he experiencing? A) Frictional. B) Structural. C) Seasonal. D) Cyclical. Show Answer Correct Answer: D) Cyclical. 12. What is Consumption in the context of macroeconomics? A) Total spending by households on goods and services. B) Total spending by businesses on investments. C) Total government spending on public goods. D) Total spending by foreign countries on domestic goods. Show Answer Correct Answer: A) Total spending by households on goods and services. 13. If there is an increase in demand for a good, what will most likely happen to the price and quantity of the good exchanged? A) Increase Price; Increase Quantity. B) Decrease Price; Increase Quantity. C) Increase Price; Decrease Quantity. D) Decrease Price; Decrease Quantity. Show Answer Correct Answer: A) Increase Price; Increase Quantity. 14. When economists say that money serves as a unit of account, they mean that it is: A) A way to keep wealth in a readily spendable form for future use. B) A means of payment. C) A monetary unit for measuring and comparing the relative values of goods. D) Declared as legal tender by the government.Option 4 (optional). Show Answer Correct Answer: C) A monetary unit for measuring and comparing the relative values of goods. 15. A view that describes the relationship between money and interest rates, emphasizes speculative motives in holding money, and encourages Central Bank policy on credit. A) Monetarist. B) Economist Austria. C) Keynesian. D) Choudhury. Show Answer Correct Answer: C) Keynesian. 16. The United States federal government budget deficits tend to be large when which of the following is low A) The interest rate on government bonds. B) The growth rate of the economy. C) The unemployment rate. D) The inflation rate. E) The international value of the United States dollar. Show Answer Correct Answer: B) The growth rate of the economy. 17. Governments have an important stabilisation role in the Economy. A) True. B) False. Show Answer Correct Answer: A) True. 18. Demand-pull inflation is inflation caused by ..... A) Producer costs. B) Producer demand. C) Consumer costs. D) Consumer demand. Show Answer Correct Answer: D) Consumer demand. 19. What would happen if contractionary fiscal policy were implemented during an economic boom but, due to lag, it did not take effect until the economy slipped into recession? A) The contractionary fiscal policy would stabilize the economy and prevent a recession. B) The contractionary fiscal policy would lead to an even stronger economic boom. C) The contractionary fiscal policy would exacerbate the recession by further reducing aggregate demand and worsening the economic downturn. D) The contractionary fiscal policy would have no effect on the economy . Show Answer Correct Answer: C) The contractionary fiscal policy would exacerbate the recession by further reducing aggregate demand and worsening the economic downturn. 20. What does jurisdiction mean? A) The offical power to make legal decisions. B) The right to have justice. C) The power to control everyone in the court. D) None of the above. Show Answer Correct Answer: A) The offical power to make legal decisions. ← 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