This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Macroeconomics – Quiz 181 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 181 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of the following is the best measure of the production or output of an economy? A) Consumer price index. B) Unemployment rate. C) Gross domestic product. D) GDP deflator. Show Answer Correct Answer: C) Gross domestic product. 2. Why is it unsustainable to have Economic Growth above 4.5% A) It leads to large increases in Real GDP. B) It leads to large increases in the Gini Coeffient. C) It leads to large increases in Unemployment. D) It leads to large increases in Inflation. Show Answer Correct Answer: D) It leads to large increases in Inflation. 3. ..... operating expenses of a business (building) A) Variable costs. B) Fixed costs. C) Producer surplus. D) Economic utility. Show Answer Correct Answer: B) Fixed costs. 4. The relationship between prices and overall demand for goods and services in an economy is A) Positive. B) Negative. Show Answer Correct Answer: B) Negative. 5. An abstract measure of the satisfaction that a consumer receives from a bundle of goods and services A) Variable costs. B) Fixed costs. C) Producer surplus. D) Economic utility. Show Answer Correct Answer: D) Economic utility. 6. That part of personal income which is actually available to households for consumption and saving is called ..... A) National Disposable Income. B) Personal Disposable Income. C) Personal Income. D) None. Show Answer Correct Answer: B) Personal Disposable Income. 7. Expansion of the economy to produce more goods, jobs, and wealth A) Consumer Price Index. B) Gross Domestic Product. C) Unemployment Rate. D) Economic Growth. Show Answer Correct Answer: D) Economic Growth. 8. Which of the following is a stage of the business cycle? A) Procession. B) Trough. C) Slide. D) Valley. Show Answer Correct Answer: B) Trough. 9. Economic growth would result from technological advances or increases in the resources available or ..... A) Reduced rates of employment outsourcing. B) The federal budget deficit. C) Aggregate demand. D) An increase in the country's terms of trade. Show Answer Correct Answer: D) An increase in the country's terms of trade. 10. The long run framework of macroeconomics is focus on supply. A) True. B) False. Show Answer Correct Answer: A) True. 11. Unemployment is a waste of resources because the economy gives up the goods and services that unemployed workers could have produced if they had been working. A) True. B) False. Show Answer Correct Answer: A) True. 12. Ms. H buying a used car, is not included in the GDP calculation because it is ..... A) A non-market transaction. B) A second-hand good. C) An intermediate good. D) An underground economy transaction. Show Answer Correct Answer: B) A second-hand good. 13. Under floating system, the exchange rate: A) Fluctuates in response to changing economic conditions. B) Is maintained at a predetermined level by the central bank. C) Is changed at regular intervals by the central bank. D) Fluctuates in response to changes in the price of gold. Show Answer Correct Answer: A) Fluctuates in response to changing economic conditions. 14. "Changes in government expenditure and taxes which occur automatically without any government action." This statement refers to ..... A) Objectives of fiscal policy. B) Types of fiscal policy. C) Discretionary fiscal policy. D) Automatic fiscal policy. Show Answer Correct Answer: D) Automatic fiscal policy. 15. In December 2017, 15, 000 of US residents were employed and 5, 000 were unemployed. Find the unemployment rate for December 2017. A) 25 %. B) 20 %. C) 33 %. D) 75%. Show Answer Correct Answer: A) 25 %. 16. A(n) ..... is a rule governing policy toward the exchange rate. A) Exchange Rate Regime. B) Fixed Exchange Rate. C) Floating Exchange Rate. D) None of above. Show Answer Correct Answer: A) Exchange Rate Regime. 17. If you live on a fixed income, how will you be affected by inflation. A) You are hurt because your purchasing power has decreased. B) You are helped because your purchasing power has increased. C) You are helped because interest rates rise. D) You are hurt because interest rates rise. Show Answer Correct Answer: A) You are hurt because your purchasing power has decreased. 18. Assume that the economy is in equilibrium. If aggregate demand increases, nominal interest rates and bond prices will most likely change in which of the following ways? A) Nominal Interest Rates | Increase-Bond Prices | Increases. B) Nominal Interest Rates | Increase-Bond Prices | Decrease. C) Nominal Interest Rates | Increase-Bond Prices | Not Change. D) Nominal Interest Rates | Decrease-Bond Prices | Increases. E) Nominal Interest Rates | Decrease-Bond Prices | Decrease. Show Answer Correct Answer: B) Nominal Interest Rates | Increase-Bond Prices | Decrease. 19. Consumer Spending2. Investment (business spending on tools/equipment3. Government spending (NOT transfer payments)4. Net exports ..... exports (x)-Imports (M) A) Four components of GDP. B) Factors of productivity. C) Major Economic Goals for Every Country. D) The Business Cycle. Show Answer Correct Answer: A) Four components of GDP. 20. How will labour unions affect an employer? A) The high-skilled workers are more likely to be represented by a union. B) Products cost more than usual. C) They have to pay more for low-skilled employees. D) They don't affect them at all. Show Answer Correct Answer: C) They have to pay more for low-skilled employees. ← 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