This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Macroeconomics – Quiz 189 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 189 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Revenue means this: A) Credit. B) Income. C) Taxes. D) Bankruptcy. Show Answer Correct Answer: B) Income. 2. Which of these groups are most vulnerable to poverty A) Minorities. B) College Students. C) Children. D) Elderly. Show Answer Correct Answer: C) Children. 3. The buying and selling of government securities in order to alter the supply of money. A) Open Market Operations. B) Expansion. C) Discount Rate. D) Trough. Show Answer Correct Answer: A) Open Market Operations. 4. All of the following are types of unemployment but ..... A) Cyclical. B) Full. C) Structural. D) Frictional. E) Seasonal. Show Answer Correct Answer: B) Full. 5. Where does the largest share of federal tax revenue come from? A) Corporate taxes. B) General sales taxes. C) Individual income taxes. D) Property taxes. Show Answer Correct Answer: C) Individual income taxes. 6. Which factor MOST directly affects the amount of money borrowers must repay to lenders? A) The inflation rate. B) The employment rate. C) The interest rate. D) The currency exchange rate. Show Answer Correct Answer: C) The interest rate. 7. Ned is a typewriter repairman. As typewriters are being replaced by computers Ned finds less and less work. What kind of unemployment is Ned experiencing? A) Cyclical unemployment. B) Structural unemployment. C) Frictional unemployment. D) Seasonal unemployment. Show Answer Correct Answer: B) Structural unemployment. 8. A little inflation is normal and even good for a healthy economy. Inflation becomes a problem when it grows too quickly. A) True. B) False. Show Answer Correct Answer: A) True. 9. The most commonly used measure of a country's national income is ..... A) GNP. B) GDP. C) Real GDP. D) CPI. Show Answer Correct Answer: B) GDP. 10. What is true at macroeconomic equilibrium? A) AD = AS. B) AD > AS. C) AD < AS. D) AD + AS = 1. Show Answer Correct Answer: A) AD = AS. 11. Suppose, the reserve ratio is equal $rr=5%$ A) 105%. B) 10. C) 20. D) 25. Show Answer Correct Answer: C) 20. 12. Where did the idea of the circular flow of goods and services came from? A) Plato. B) Francois Quesnay. C) Bill Gates. D) None of above. Show Answer Correct Answer: B) Francois Quesnay. 13. Stagflation is what? A) Laws that reduce inflation and decrease GDP. B) Output is high and unemployment is less than the natural rate of unemployment. C) A gap with higher prices and a decrease in GDP. D) Laws that reduce unemployment and increase GDP. Show Answer Correct Answer: C) A gap with higher prices and a decrease in GDP. 14. Which of the following is true about bonds? A) Bond prices remain fixed over time. B) Bonds have unlimited profit potential. C) Bonds are generally riskier than stocks. D) Bondholders receive interest payments. E) Bondholders become part owners of the company that issued the bonds. Show Answer Correct Answer: D) Bondholders receive interest payments. 15. Government ensures the stability and economic growth of a country by the following except A) Adjusting the allocation of resources to alter the composition of the domestic output. B) Controlling unemployment and inflation, which are caused by business fluctuations. C) Encouraging the power of monopoly firms. D) Redistributing income and wealth among the population. Show Answer Correct Answer: C) Encouraging the power of monopoly firms. 16. 2 sector model showing how businesses & households interact A) Circular Flow Diagram. B) Demand Curve. C) Supply Curve. D) Price Controls. Show Answer Correct Answer: A) Circular Flow Diagram. 17. Which of the following is not a determinant of aggregate demand? A) Change in Consumer Spending. B) Change in Political Parties. C) Change in Government Spending. D) Change in investment Spending. Show Answer Correct Answer: B) Change in Political Parties. 18. Grants to support R&D affect on steady state level and steady state growth of total output per person A) Increases s.s level, s.s growth rate unchanged. B) Decreases s.s level, s.s growth rate unchanged. C) Increases s.s level, s.s growth rate increases. D) Increases s.s level, s.s growth rate decreases. Show Answer Correct Answer: C) Increases s.s level, s.s growth rate increases. 19. Exogenous variables are determined A) Outside the model. B) In the model. Show Answer Correct Answer: A) Outside the model. 20. Which one of the following would most likely be considered a defensive expenditure? A) New energy efficient windows for a house. B) A new fuel efficient automobile. C) The cost of cleaning up an oil spill. D) Taxes paid to expand a highway system. E) The cost of a university education. Show Answer Correct Answer: C) The cost of cleaning up an oil spill. ← 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