This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Macroeconomics – Quiz 182 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 182 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Why is data important in macroeconomics? A) Data is important in macroeconomics for analyzing and understanding the overall performance of an economy. B) Data is important in macroeconomics, but it is not necessary for understanding the overall performance of an economy. C) Data is only important in microeconomics, not macroeconomics. D) Data is not important in macroeconomics as it is too complex to analyze. Show Answer Correct Answer: A) Data is important in macroeconomics for analyzing and understanding the overall performance of an economy. 2. Most of the part of ..... economics is related with microeconomics. A) Keynesian. B) Pigouvian. C) Marshallian. D) Robbins. Show Answer Correct Answer: C) Marshallian. 3. Which of the following is an example of capital goods A) Bread and butter. B) Cloth. C) Shoes. D) Tractor. Show Answer Correct Answer: D) Tractor. 4. According to John Maynard Keynes, the key to reducing high levels of unemployment was to ..... A) Set long-term employment contracts that eliminate uncertainty. B) Eliminate government intervention in the labor market. C) Increase aggregate demand. D) Create retraining programs so that unemployed workers can acquire new skills as technology changes. E) Offer employees above-equilibrium wages to attract more workers. Show Answer Correct Answer: C) Increase aggregate demand. 5. In the business cycle, what always follows immediately after a contraction? A) Trough. B) Contraction. C) Expansion. D) Peak. Show Answer Correct Answer: A) Trough. 6. Requirement that an owner is personally and fully responsible for all losses and debts of a business; applies to proprietorships, general partnerships A) Cooperative. B) Business organization. C) Unlimited liability. D) Fringe Benefits. E) Corporation. Show Answer Correct Answer: C) Unlimited liability. 7. An economy's GDP measures both the total income earned in the economy and the total expenditure on the economic prosperity A) True. B) False. Show Answer Correct Answer: A) True. 8. The exchange rate between the domestic and a foreign currency is determined by ..... A) The monetary strengths of countries involved. B) The political regime of the countries involved. C) The relative tax rate in those countries. D) The law of supply and demand. Show Answer Correct Answer: D) The law of supply and demand. 9. Are unemployed because employers need their type of human capital during only one part of the year A) Cyclical. B) Seasonal. C) Frictional. D) Structural. Show Answer Correct Answer: B) Seasonal. 10. The use of government spending and revenue collection to influence the economy. A) Monetary Policy. B) Fiscal Policy. C) Congressional Policy. D) Executive Policy. Show Answer Correct Answer: B) Fiscal Policy. 11. Which of the following typically rises during a recession? A) Unemployment. B) Average income. C) Production. D) Stock prices. Show Answer Correct Answer: A) Unemployment. 12. What is the labor-force participation rate? A) The percentage of people in the labor force who are employed. B) The percentage of people in the population who are in the labor force. C) The percentage of people in the population who are unemployed. D) The percentage of people in the labor force who are not employed. Show Answer Correct Answer: B) The percentage of people in the population who are in the labor force. 13. Law of ..... Marginal Utility:The more you consume, the less you enjoy additional consumption. A) Diminishing. B) Increasing. C) Inconsequential. D) Coincidental. Show Answer Correct Answer: A) Diminishing. 14. Which policy would help fight inflation? A) Expansionary. B) Contractionary. Show Answer Correct Answer: B) Contractionary. 15. Consumers reduce spending because they lack confidence in the economy. All else being equal, what effect will this have on the price level and GDP? A) Both prices and real GDP will decline. B) Prices will increase, but real GDP will be unaffected. C) Both prices and real GDP will increase. D) Prices will decrease, but real GDP will be unaffected. Show Answer Correct Answer: A) Both prices and real GDP will decline. 16. If the government increases spending but does not bring in enough tax revenue, this will create a ..... A) Budget surplus. B) Trade surplus. C) Trade deficit. D) Budget deficit. Show Answer Correct Answer: D) Budget deficit. 17. The following are factors that influence overall demand (aggregate demand), except: A) Increase in real income. B) Technological change and productivity. C) Changes in business expectations. D) Changes in the rate of inflation. Show Answer Correct Answer: B) Technological change and productivity. 18. In the U.S., the federal funds rate is the interest rate on ....., and is controlled by the ..... A) Reserves that banks lend to each other; Treasury Department. B) Reserves that banks lend to each other; President and Congress. C) Loans from the Fed to banks; President and Congress. D) Reserves that banks lend to each other; Federal Open Market Committee. E) Loans from the Fed to banks; Federal Open Market Committee. Show Answer Correct Answer: D) Reserves that banks lend to each other; Federal Open Market Committee. 19. Which of the following is direct tax? A) Excise tax. B) Sales tax. C) Real property tax. D) Import tax. Show Answer Correct Answer: C) Real property tax. 20. A central bank regulation employed by most, but not all, of the world's central banks, that sets the minimum amount of reserves that must be held by a commercial bank A) Peak Requirement. B) Recession Requirement. C) Reserve Requirement. D) Supply Requirement. Show Answer Correct Answer: C) Reserve Requirement. ← 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