This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Macroeconomics – Quiz 183 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 183 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which is NOT a goal promoted by the government through fiscal policy? A) Price stability. B) Economic growth. C) Full employment. D) Money supply. Show Answer Correct Answer: D) Money supply. 2. These are all conventional macroeconomic objectives EXCEPT ..... A) To achieve price stability. B) To achieve economic growth. C) To achieve universal education. D) To achieve full employment. Show Answer Correct Answer: C) To achieve universal education. 3. Which of these is a correct description for one of the ways in which a command economy differs from a market economy? A) Market economies discourage free enterprise. B) In a market economy, the government sets prices. C) Command economies tend to have a higher per capita GDP. D) In a command economy, individuals have less economic freedom. Show Answer Correct Answer: D) In a command economy, individuals have less economic freedom. 4. In the Mundell-Flemming model with a floating exchange rate, expansionary monetary policy leads to a(n) ..... exchange rate, ..... income, and ..... net exports. A) Increased, unchanged, decreased. B) Decreased, increased, increased. C) Increased, increased, increased. D) None of above. Show Answer Correct Answer: B) Decreased, increased, increased. 5. If Frank's pay is cut by 2% due to poor economic conditions, but inflation is at-4% (deflation), Frank's purchasing power has A) Not changed. B) Increased. C) Decreased. D) None of above. Show Answer Correct Answer: B) Increased. 6. A period of macroeconomic expansion or growth, followed by a period of contraction, or decline. A) Business Cycle. B) Circular Flow. C) Equilibrium. D) GDP. Show Answer Correct Answer: A) Business Cycle. 7. What notes comes under money supply? A) Notes and coins. B) Money in current account. C) Money in savings account. D) Money in fixed account. Show Answer Correct Answer: D) Money in fixed account. 8. The ..... is the percentage increase in the overall level of prices per year. A) Inflation Rate. B) Deflation Rate. C) Real Wage. D) Real Income. Show Answer Correct Answer: A) Inflation Rate. 9. What is included in the macro market is..... A) Goods Market. B) Money market. C) Labor Market. D) Overseas Market. E) All true. Show Answer Correct Answer: E) All true. 10. When unemployment rises, what is likely to happen to GDP? A) GDP will rise. B) GDP will drop. C) GDP will stay flat. D) A new GDP formula will be created. Show Answer Correct Answer: B) GDP will drop. 11. The lowest legal wage allowed for one hour of work. A) Wage floor. B) Wage ceiling. C) Glass ceiling. D) Minimum wage. Show Answer Correct Answer: D) Minimum wage. 12. Under the Mundell-Fleming model, if there is an increase in the price level, the ..... curve shifts ....., since an increase in P causes a(n) ..... in the supply of real money balances. A) LM, left, decrease. B) IS, right, increase. C) LM, right, increase. D) LM, right, increase. Show Answer Correct Answer: A) LM, left, decrease. 13. Which phrase BEST describes the effect of an increase in U.S. steel imports? A) Higher tariffs on foreign steel. B) Less foreign steel bough by consumers. C) Higher wages for U.S. steel workers. D) Fewer goods sold by U.S. steel companies. Show Answer Correct Answer: D) Fewer goods sold by U.S. steel companies. 14. What is important to the economy of landlocked countries? A) Strong diplomatic relationships. B) Numerous ports. C) Goods that are desired by the surrounding countries. D) Rivers and lakes. Show Answer Correct Answer: A) Strong diplomatic relationships. 15. How does an inflationary gap self correct? A) Wages increase, output decreases. B) Wages decrease, output increases. C) Wages decrease, output decreases. D) Output increase, wages increase. Show Answer Correct Answer: A) Wages increase, output decreases. 16. The Federal Reserve System was established in A) 1799. B) 1913. C) 1863. D) 1881. Show Answer Correct Answer: B) 1913. 17. The national debt is approaching what important economic number? A) Annual GDP. B) Ice cream sale in July. C) GDP per capita. D) Who knows? but it's big!. Show Answer Correct Answer: A) Annual GDP. 18. Who appoints members of the Fed's Board of governors? A) The President. B) House of Representatives. C) Senate. D) Chair of the Board of Governors. Show Answer Correct Answer: A) The President. 19. Choose the CORRECT definition for business cycle A) The periods of business during its increasing profit rate. B) Composed periods of good trades with rising prosperity and low unemployment, also bad trades with falling prosperity and high unemployment. C) Composed periods of bad trades with falling prosperity and high unemployment. D) Periods where businesses starts selling their product. Show Answer Correct Answer: B) Composed periods of good trades with rising prosperity and low unemployment, also bad trades with falling prosperity and high unemployment. 20. What does the fundamental problem of economics imply? A) Governments must be relied upon to supply essential goods and services. B) Inflation and unemployment are unavoidable. C) Growing populations will deplete natural resources. D) Individuals and communities must make choices among competing alternatives. Show Answer Correct Answer: D) Individuals and communities must make choices among competing alternatives. ← 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