This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Macroeconomics – Quiz 175 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 175 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What does X represent in calculating net imports? X-M A) Imports. B) Exports. C) Expenditures. D) None of the Above. Show Answer Correct Answer: B) Exports. 2. If the government increases spending or lowers taxes, it is implementing a(n) ..... policy A) Contractionary fiscal. B) Expansionary fiscal. C) Contractionary monetary. D) Expansionary monetary. Show Answer Correct Answer: B) Expansionary fiscal. 3. This is just a savings account with a slightly higher interest rate because the saver commits to a longer saving period for a set amount deposited. A) C.D. B) Debt. C) Beneficiary. D) None of above. Show Answer Correct Answer: A) C.D. 4. Which of the following statements is FALSE about economic growth? A) Economic growth solves the economic problem. B) Economic growth can help in having new technology. C) Economic growth can help in expansion of education. D) Economic growth can help in using tidal power. Show Answer Correct Answer: D) Economic growth can help in using tidal power. 5. The following is the goal of macroeconomics EXCEPT: A) Achieve full employment. B) Economic growth. C) Control the Union Labor. D) Equitable distribution of income. Show Answer Correct Answer: C) Control the Union Labor. 6. The expenditure approach method is commonly used by developed countries. Namely by calculating 4 economic units, including: A) Household consumption expenditure. B) Government spending. C) Investment. D) Expose grandson. E) All true. Show Answer Correct Answer: E) All true. 7. When calculating GDP, which of the following gets subtracted out? A) Consumer spending. B) Business investment spending. C) Imports. D) Government spending. Show Answer Correct Answer: C) Imports. 8. Bart is able to buy 50 water balloons with the $ 5 bill he received for his allowance. This is an example of money as A) Fiat money. B) An investment. C) A store of value. D) A medium of exchange. Show Answer Correct Answer: D) A medium of exchange. 9. Holistic and psychology based approach to measure social welfare is ..... A) HDI. B) GDP. C) SPI. D) GNHI. Show Answer Correct Answer: D) GNHI. 10. A GDP deflator less than 1 indicates that an economy has experienced: A) Inflation. B) Deflation. C) Stagflation. D) None of above. Show Answer Correct Answer: B) Deflation. 11. A country's foreign exchange rate will strengthen if: A) Imports increase compared to exports. B) The current account moves from a surplus to a deficit. C) Its exports increased compared to its imports. D) Capital transactions in surplus but unchanged. Show Answer Correct Answer: C) Its exports increased compared to its imports. 12. The gross domestic product tends to understate the amount of economic activity in the United States because it excludes: A) The payments for police protection. B) Expenditures for health care services. C) Expenditures for environmental protection. D) Jobs like babysitting, selling things at the flea market, and other "off the books" activity. Show Answer Correct Answer: D) Jobs like babysitting, selling things at the flea market, and other "off the books" activity. 13. The following are fiscal policy objectives are as follows except A) Attaining and maintaining full employment. B) Controlling equitable distribution of income and wealth. C) Encouraging investment. D) To maintain domestic price instability. Show Answer Correct Answer: D) To maintain domestic price instability. 14. What strategy would economists advocate for if the economy is in a recession? A) Balance of Trade. B) Balance of payments. C) Expansionary Policy. D) Contractionary Policy. Show Answer Correct Answer: C) Expansionary Policy. 15. A weighted average of prices for different goods A) GDP. B) Peak. C) CPI. D) Inflation list. Show Answer Correct Answer: C) CPI. 16. How does a bear stock market impact the U.S. economy? A) Americans will invest less money in the stock market. B) Americans will invest more money in the stock market. C) Consumers will purchase more large appliances. D) Consumers will purchase more vacation homes. Show Answer Correct Answer: A) Americans will invest less money in the stock market. 17. Which of the following is an 'injection' into the circular of income? A) Savings. B) Taxation. C) Imports. D) Exports. Show Answer Correct Answer: D) Exports. 18. Transfer payment is not included in national income because ..... A) It is illegal activity. B) It does not encourage the people to consume. C) It is only theoretical concept. D) It is payment made without reverse flow of good and services. Show Answer Correct Answer: D) It is payment made without reverse flow of good and services. 19. What is a period of rising prices that affects consumers as well as producers? A) Inflation. B) Monetary Policy. C) Fiscal Policy. D) Debt. Show Answer Correct Answer: A) Inflation. 20. When a country sinks into a recession, the unemployment rate of that country will most likely do what? A) Go down. B) Go up. C) Nothing as a recession has no impact on the unemployment rate. D) There is not enough information to answer the question. Show Answer Correct Answer: B) Go up. ← 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