This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Macroeconomics – Quiz 185 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 185 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Oversees the entire banking system, 7 members appointed by the president and approved by the Senate; serve 14 year terms A) Board of Governors. B) Open market committee. C) Federal Reserve. D) FDIC. Show Answer Correct Answer: A) Board of Governors. 2. Raul serves in the military as a marine. How would he be categorized by the BLS? A) Employed. B) Unemployed. C) Underemployed. D) Not in the Labor Force. Show Answer Correct Answer: D) Not in the Labor Force. 3. SRAS curve is A) Vertical. B) Horizontal. C) Downward sloping. D) Upward sloping. Show Answer Correct Answer: B) Horizontal. 4. Studies on national income. A) Macroeconomics. B) Microeconomics. Show Answer Correct Answer: A) Macroeconomics. 5. Two local business owners want to reduce competition, so they decide to form one organization from the two companies. This is an example of a A) Monopoly. B) Hostile takeover. C) Merger. D) Trading bloc. Show Answer Correct Answer: C) Merger. 6. Jack signs a rental agreement to pay $ 1, 500 a month for an apartment for three years. A) Benefits from unanticipated inflation. B) Harmed from unanticipated inflation. Show Answer Correct Answer: A) Benefits from unanticipated inflation. 7. When the economy experiences an expansion, it is most likely the case that A) GDP is increasing, unemployment is increasing, and inflation is decreasing. B) GDP is decreasing, unemployment is decreasing, and inflation is increasing. C) GDP is increasing, unemployment is decreasing, and inflation is increasing. D) GDP is decreasing, unemployment is decreasing, and inflation is decreasing. Show Answer Correct Answer: C) GDP is increasing, unemployment is decreasing, and inflation is increasing. 8. James, William, and Mason are discussing about different types of economics. James is curious to know, what is the study of large-scale economies called? A) Microeconomics. B) Macroeconomics. C) Command economy. D) Market economy. Show Answer Correct Answer: B) Macroeconomics. 9. Increase in exchange rate will causes: A) Export price relatively expensive. B) BP curve shift to the right. C) IS curve shift to the right. D) BP curve shift to the left. Show Answer Correct Answer: B) BP curve shift to the right. 10. A second-hand car dealer buys a car for $ 10, 000. Overhauls the car for $ 5, 000 with a new paint work. He adds a profit of $ 500 on top and sells it for $ 15, 500. Which part of this transaction can GDP include if at all A) GDP does not include any part of the above transactions. B) GDP captures the value added by the dealer $ 5, 500 (including dealer's profit). C) GDP captures the value added by the dealer $ 5, 000 (excluding dealer's profit). D) GDP captures the value of all the transactions $ 15, 500. Show Answer Correct Answer: B) GDP captures the value added by the dealer $ 5, 500 (including dealer's profit). 11. Which government policy measure would be most likely to reduce unemployment? A) An increase in income tax. B) An increase in interest rate. C) A decrease in government expenditure. D) A decrease in VAT. Show Answer Correct Answer: D) A decrease in VAT. 12. An organization of workers who collectively seek to improve wages, working conditions, benefits, job security, and other work-related matters A) Labor Union. B) Labor Strike. C) Union Strike. D) Union Labor. Show Answer Correct Answer: A) Labor Union. 13. As a consequence of a severe global recession, an economy has experienced a demand-side shock and is now growing below its trend rate. All other things being equal, which of the following combinations is most likely to exist in this economy. A) Falling rate of unemployment and increasing rate of inflation. B) Falling rate of unemployment and falling rate of inflation. C) Increasing rate of unemployment and falling rate of inflation. D) Increasing rate of unemployment and increasing rate of inflation. Show Answer Correct Answer: C) Increasing rate of unemployment and falling rate of inflation. 14. Which of the following transactions would be included in the computation of gross domestic product? A) Josh buys a new pair of running shoes. B) Nancy offers to babysit her granddaughter. C) Katie buys her dad's used car. D) Eli cannot go to a concert so he resells his ticket to a friend. E) Molly rakes the leaves in her own yard. Show Answer Correct Answer: A) Josh buys a new pair of running shoes. 15. Corn/TV Sets A 0/6 B 12/5 C 22/4 D 30/3 E 36/2 F 40/1 G 42/0 The OC of producing the first TV set is A) 42 units of corn. B) 40 units of corn. C) 12 units of corn. D) 2 units of corn. Show Answer Correct Answer: D) 2 units of corn. 16. 5 main factors that shift the supply curve A) MERIT:Market Size (# of consumers), Expectations, Related Prices (complements and substitutes), Income (normal and inferior goods), Tastes. B) TRICE-Technology (can both increase or decrease the curve), Related Prices (substitutes/compliments), Input prices, Competition, Expectations. C) A model that shows the flow of goods and services and the interaction among households, businesses, and banks. D) None of above. Show Answer Correct Answer: B) TRICE-Technology (can both increase or decrease the curve), Related Prices (substitutes/compliments), Input prices, Competition, Expectations. 17. The equilibrium level of national income in a closed economy is where A) MPC = APC. B) Consumption equals savings. C) Aggregate expenditure equal National Income. D) Unemployment rate is about 3 percent of labour force. Show Answer Correct Answer: C) Aggregate expenditure equal National Income. 18. Imagine a country where the economic system has both market-based elements and some level of government involvement. What would you call this type of economy? A) Market Economy. B) Mixed Economy. C) Traditional Economy. D) Command Economy. Show Answer Correct Answer: B) Mixed Economy. 19. A high minimum wage can cause structural unemployment. A) True. B) False. Show Answer Correct Answer: A) True. 20. If resource prices fall, what curve on the AD/AS model shifts and in what direction A) AD Shift right in the Long Run. B) AD shifts left in the Short Run. C) SRAS shifts right in the short run. D) SRAS shifts left in the short run. E) LRAS shifts right in the long run. Show Answer Correct Answer: C) SRAS shifts right in the short run. ← 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