This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Macroeconomics – Quiz 187 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 187 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. An ..... is a reduction in the value of money held by the public caused by inflation. A) Inflation Tax. B) Cost-Push Inflation. C) Demand-Pull Inflation. D) Disinflation. Show Answer Correct Answer: A) Inflation Tax. 2. A mine that contains both silver and gold would be an example of which of the following Factors of Production? A) Land. B) Labor. C) Capital. D) Entrepreneurship. Show Answer Correct Answer: A) Land. 3. Macro economics is also known as Theory of Income And Employment- A) TRUE. B) FALSE. Show Answer Correct Answer: A) TRUE. 4. A group of deaf rats pass through a sewer hole. How many are there? A) 12. B) 18. C) 24. D) 30. Show Answer Correct Answer: C) 24. 5. The time and method for paying the tax should be suitable A) Certainty canon of taxation. B) Convenience canon of taxation. C) Economy canon of taxation. D) Equity canon of taxation. Show Answer Correct Answer: B) Convenience canon of taxation. 6. What is an indicator of economic stability? A) High unemployment rate. B) Low GDP growth. C) General price levels. D) Decreasing productivity. Show Answer Correct Answer: C) General price levels. 7. Which is not a Characteristic of Money? A) Durability. B) Portability. C) Divisibility. D) Invincibility. Show Answer Correct Answer: D) Invincibility. 8. The act of limiting the kinds of goods and services produced A) Dependent. B) Absolute advantage. C) Comparative advantage. D) Specialization. Show Answer Correct Answer: D) Specialization. 9. If the Federal reserve and Government are attempting to encourage growth and stimulate the economy, which actions would each take? (monetary / fiscal) A) Increase the Required reserve / increase government spending. B) Sell government securities / decrease taxes. C) Decrease the interest rate / increase government spending. D) Buy government securities / decrease government spending. Show Answer Correct Answer: C) Decrease the interest rate / increase government spending. 10. The country's gross domestic product is A) $ 220 billion. B) $ 282 billion. C) $ 304 billion. D) $ 309 billion. E) $ 347 billion. Show Answer Correct Answer: A) $ 220 billion. 11. If an economy experiences a sudden increase in prices, which fiscal policy action should be taken? A) Selling government securities on the open market. B) Increasing interest rates. C) Increasing taxes. D) Increasing the reserve requirements. Show Answer Correct Answer: C) Increasing taxes. 12. The aggregate demand curve slopes downward because a decrease in the price level means a(n) ..... in the real money supply and therefore a ..... level of real spending. A) Increase; higher. B) Increase; lower. C) Decrease; lower. D) Decrease; higher. Show Answer Correct Answer: A) Increase; higher. 13. What taxes would an individual pay if he were self-employed and the business is not incorporated? A) Self-employment taxes, including Social Security and Medicare taxes. B) Sales taxes. C) Property taxes. D) Income taxes . Show Answer Correct Answer: A) Self-employment taxes, including Social Security and Medicare taxes. 14. To make it more useful, the household must put it in the ..... so that the economy may benefit from it. A) Savings. B) Bank. C) Investment. D) None of above. Show Answer Correct Answer: B) Bank. 15. Define macroeconomic variables. A) Macroeconomic variables are only applicable to developed countries. B) Macroeconomic variables are used to measure the performance of individual firms. C) Macroeconomic variables are limited to measuring inflation and unemployment rates. D) Macroeconomic variables are key indicators that measure the overall performance of an economy. Show Answer Correct Answer: D) Macroeconomic variables are key indicators that measure the overall performance of an economy. 16. Which of the following is a topic studied in Macroeconomics? A) The functioning of individual industries. B) Aggregate behavior of household and industries. C) The behavior of individual households. D) The decision-making of individual business firms. Show Answer Correct Answer: B) Aggregate behavior of household and industries. 17. How do we measure economic growth? A) Increases in the price level, as indicated by the GDP chain price index. B) Increases in fictional GDP. C) Increases in real GDP. D) Increases in the labor force. Show Answer Correct Answer: C) Increases in real GDP. 18. What is money? A) Only currency(bills) that is printed by the federal government. B) Any thing you want it to be. C) Any item accepted as payment for goods or services. D) None of the above. Show Answer Correct Answer: C) Any item accepted as payment for goods or services. 19. When the Government spends more than it saves A) Budget. B) Budget Surplus. C) Budget Deficit. D) GDP. Show Answer Correct Answer: C) Budget Deficit. 20. Type of unemployment that occurs when workers skills do not match those needed for the jobs available. A) Seasonal Unemployment. B) Structural Unemployment. C) Frictional Unemployment. D) Cyclical Unemployment. Show Answer Correct Answer: B) Structural Unemployment. ← 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