This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Macroeconomics – Quiz 184 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 184 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Study of general price level is a subject matter of: A) Microeconomics. B) Macroeconomics. C) Both (a) and (b). D) None of these. Show Answer Correct Answer: B) Macroeconomics. 2. An economy has a budget deficit, and you want to show the impact of the budget deficit on the real interest rate.What model would you use, and what would be the impact on the interest rate? A) The AD-AS model; the real interest rate is not impacted. B) The money market; the real interest rate decreases. C) The money market; the real interest rate is not impacted. D) The loanable funds market; real interest rate decreases. E) The loanable funds market; real interest rate increases. Show Answer Correct Answer: E) The loanable funds market; real interest rate increases. 3. Based on the economic figures in the table above, what is the value of gross domestic product, in billions of dollars? A) $ 4, 500. B) $ 4, 700. C) $ 4, 900. D) $ 5, 150. E) $ 5, 950. Show Answer Correct Answer: A) $ 4, 500. 4. What are the components of GDP? A) Consumption, investment, government spending, and net exports. B) Consumption, investment, taxes, and net exports. C) Consumption, investment, government spending, and imports. D) Consumption, savings, government spending, and exports. Show Answer Correct Answer: A) Consumption, investment, government spending, and net exports. 5. As a school teacher, Mr. Miedema gets a pay raise if he earns his Master's Degree. What theory of wage determination does this exemplify? A) Market Theory. B) Negotiated Wages Theory. C) Signaling Theory. D) Mediationary Arbitrative Theory. Show Answer Correct Answer: C) Signaling Theory. 6. The goals of macroeconomics include A) Economic stagnation. B) Higher price level. C) Imbalance in balance of payment. D) Full employment. Show Answer Correct Answer: D) Full employment. 7. Misusing seignorage can cause A) Inflation. B) Hyperinflation. C) Disinflation. D) Deflation. Show Answer Correct Answer: B) Hyperinflation. 8. What is likely to fall when the rate of unemployment in a country falls? A) Business confidence. B) Consumer spending. C) Government budget deficit. D) Government revenue from taxes. Show Answer Correct Answer: C) Government budget deficit. 9. A retired woman lives entirely on Social Security income, while a farmer borrows money to buy a new tractor. How would inflation affect them? A) Inflation helps the retiree but hurts the farmer. B) Inflation helps the bank but hurts the farmer and the retiree. C) Inflation hurts the farmer and the retiree. D) Inflation helps the farmer but hurts the retiree. E) Inflation hurts the bank but helps the farmer and the retiree. Show Answer Correct Answer: D) Inflation helps the farmer but hurts the retiree. 10. The payment of welfare benefits by the government: A) Increases the value of GDP. B) Reduces the value of GDP. C) Is not included in the calculation of GDP. D) Is only included in the calculation of GDP if it is for unemployment benefits. Show Answer Correct Answer: C) Is not included in the calculation of GDP. 11. How would Eurostat classify a 14-year old individual working 10 hours per week at a restaurant? A) Not surveyed. B) Not in the labor force. C) A discouraged worker. D) Unemployed. E) Employed. Show Answer Correct Answer: A) Not surveyed. 12. It is the measure of national output that adjusts GNP to account for price changes. A) Nominal GNP. B) Potential GNP. C) Real GNP. D) Actual GNP. Show Answer Correct Answer: C) Real GNP. 13. The total value of all final goods and services produced in a country in a given year. A) Gross Domestic Product. B) Consumer Price Index. C) Inflation. D) Unemployment. Show Answer Correct Answer: A) Gross Domestic Product. 14. Aggregate demand A) Demand that is aggregated. B) Total demand for goods and services in a market. C) Demand for goods and services. D) None of above. Show Answer Correct Answer: B) Total demand for goods and services in a market. 15. A government decided to increase its spending on building schools and hospitals. Which aim of government policy is most likely to be achieved by this increase? A) A balance of payments surplus. B) A stronger exchange rate. C) Economic growth. D) Price stability. Show Answer Correct Answer: C) Economic growth. 16. Aggregate supply is generally influenced by:I. Increase in input supplyII. Technology and productivity improvements III. Changes in the institutional field A) I and II only. B) I and III only. C) II and III only. D) I, II and III. Show Answer Correct Answer: D) I, II and III. 17. In the circular flow model, which of the following flows in the opposite direction from the flow of factors of production? A) Finished goods and services. B) Wages, rent, interest, and profit. C) Transfer payments from government. D) Firm's profit incentives. Show Answer Correct Answer: B) Wages, rent, interest, and profit. 18. What should the "normal" or "acceptable" inflation rate be? A) 7-9%. B) 1-2%. C) 3-5%. D) 2-4%. Show Answer Correct Answer: B) 1-2%. 19. A tax on the sale or production of a domestic good is called a(n) ..... A) Estate Tax. B) Import Tax. C) "Sin" Tax. D) Excise Tax. Show Answer Correct Answer: D) Excise Tax. 20. What is the role of science in macroeconomics? A) Science in macroeconomics provides a systematic and empirical approach to studying and understanding the behavior of the economy as a whole. B) Science in macroeconomics only focuses on individual economic agents and not the entire economy. C) Science in macroeconomics relies solely on theoretical models and does not use empirical data. D) Science in macroeconomics has no role in understanding the behavior of the economy as a whole. Show Answer Correct Answer: A) Science in macroeconomics provides a systematic and empirical approach to studying and understanding the behavior of the economy as a whole. ← 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