This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Macroeconomics – Quiz 178 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 178 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. It is the value of all final goods and services produced within the boundaries of the Philippines, whether by foreign or Filipinos A) GDP. B) GNP. C) GNI. D) NIA. Show Answer Correct Answer: A) GDP. 2. Which of the following situation refers to HYPERINFLATION? A) Price increases in a controlled way and is less than 10% per annum whereas it's not a serious economic problem. B) Prices increases at a very high rate (1000% per ammum) and paper money almost becomes worthless. C) The spending power and value of money decreases continuously & it is not caused by the rise in prices but demand blockade & government involvement. D) None of above. Show Answer Correct Answer: B) Prices increases at a very high rate (1000% per ammum) and paper money almost becomes worthless. 3. Full employment GDP is ..... A) Output where the Natural Rate of Unemployment is achieved. B) Output without cyclical unemployment. C) Output where there is non-accelerating inflation. D) All of the above. Show Answer Correct Answer: D) All of the above. 4. If you saw that a restaurant was selling a hamburger for $ 50, you would know there must be something special about that hamburger because that's an unusual price for a hamburger. This statement describes which function of money? A) Medium of exchange. B) Store of value. C) Measure of inflation. D) Unit of account. Show Answer Correct Answer: D) Unit of account. 5. TRUE or FALSE:The maintenance cost approach assigns a monetary value to an environmental service equal to the damage done when that service is unavailable. A) TRUE. B) FALSE. Show Answer Correct Answer: B) FALSE. 6. A tax that takes a larger percentage of income from low-income groups than from high-income groups is a ..... A) Progressive Tax. B) Proportional Tax. C) Regressive Tax. D) Property Tax. Show Answer Correct Answer: C) Regressive Tax. 7. Which of the following BEST illustrates the focus of monetary policy? A) Paying down the US national debt. B) Increasing consumer demand and spending. C) Increasing consumer savings and investment. D) Controlling inflation and encouraging economic growth. Show Answer Correct Answer: D) Controlling inflation and encouraging economic growth. 8. This happens when sectors desire to buy products and services more than the available supply in the market A) Cost-push. B) Demand-pull. Show Answer Correct Answer: B) Demand-pull. 9. The government utilizes a contractionary fiscal policy to A) Grow the economy. B) Deal with inflationary pressures. C) Increase employment. D) None of above. Show Answer Correct Answer: B) Deal with inflationary pressures. 10. This refers to the purchase of goods and services by individuals or households. A) Investment. B) Export. C) Import. D) Consumption. Show Answer Correct Answer: D) Consumption. 11. When businesses earn more revenue than the amount of money they spent as a business, it is called ..... A) Debt. B) Fraud. C) Profit. D) Operating costs. Show Answer Correct Answer: C) Profit. 12. LRAS curve is A) Vertical. B) Horizontal. C) Downward sloping. D) Upward sloping. Show Answer Correct Answer: A) Vertical. 13. Required capital for economy eq A) $\Delta k=sf\left(k\right)-\delta k$. B) $\Delta k=\delta k-sf\left(k\right)$. C) $\Delta sf\left(k\right)=k-\delta k$. D) $\Delta k=sf\left(k\right)+\delta k$. Show Answer Correct Answer: A) $\Delta k=sf\left(k\right)-\delta k$. 14. If the required reserve ratio is 25 percent, the simple deposit multiplier is A) 5.0. B) 2.5. C) 4.0. D) 8.0. Show Answer Correct Answer: C) 4.0. 15. When the Federal Reserve sells government securities on the open market, what effect does this action have on the nation's money supply and interest rates? A) Money Supply-Decreases / Interest Rates-Increase. B) Money Supply-Increases / Interest Rates-Increase. C) Money Supply-Decreases / Interest Rates-Decrease. D) Money Supply-Increases / Interest Rates-Decrease. Show Answer Correct Answer: A) Money Supply-Decreases / Interest Rates-Increase. 16. This classification includes all of M1 as well as savings depositis, money market deposits, and money market mutual funds. A) M1. B) M2. C) M3. D) None of above. Show Answer Correct Answer: B) M2. 17. What is the primary cause of deflation according to monetarist theory? A) A stable quantity velocity of money. B) Any decrease in the money supply. C) A rapidly changing velocity of money. D) The money supply decreases faster than real output decreases. E) The money supply increases too rapidly for a long time. Show Answer Correct Answer: D) The money supply decreases faster than real output decreases. 18. Sue drinks three sodas during a particular day. The marginal benefit she enjoys from drinking the third soda A) Can be thought of as a total benefits you enjoyed by drinking three sodas minus the total benefit she would have enjoyed by drinking just two sodas. B) Determine Sue's willingness to pay for the third soda. C) Is likely different from the marginal benefit provided to sue by the second soda. D) Is likely to continue to fall as Sue drinks more and more soda. E) All of the above are correct. Show Answer Correct Answer: E) All of the above are correct. 19. Goods that are produced by one firm for use in furtherprocessing by another firm. A) Final goods. B) Gross domestic products. C) Intermediate goods. D) Fin. Show Answer Correct Answer: C) Intermediate goods. 20. Choose the Best Answer.What specific type of inflation is caused by a sudden decline in the supply of goods in the economy? A) Wage-push. B) Profit-push. C) Rent-push. D) Supply shock. Show Answer Correct Answer: D) Supply shock. ← 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