This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Macroeconomics – Quiz 19 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 19 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Mallory decides to spend 3 hours working overtime rather than watching a video with her friends. She earns $ 8 an hour for each hour of overtime she works. Her opportunity cost of working is: A) The $ 24 she earns working. B) The $ 24 minus the enjoyment she would have received from watching the video. C) The enjoyment she would have received had she watched the video. D) Nothing, since she would have received less than $ 24 of enjoyment from the video. Show Answer Correct Answer: C) The enjoyment she would have received had she watched the video. 2. How is the Federal Reserve more insulated from politics than other government agencies? A) Unlike other agencies, the Federal Reserve is publicly owned. B) The Federal Reserve operates independently of the government. C) Leaders of the Federal Reserve are appointed to their positions for life. D) Driven by profit, the Federal Reserve always acts in its own best interest. Show Answer Correct Answer: B) The Federal Reserve operates independently of the government. 3. Countries ..... with each other for a variety of reasons; like selling the excess products they have ..... A) Negotiate. B) Trade. C) Demands. D) Create Loans. Show Answer Correct Answer: B) Trade. 4. Fiscal policy, or making laws to alter government spending or change the tax rate to influence the economy, is controlled by who? A) Congress and the President. B) The Federal Reserve. C) IRS. D) Treasury Department. Show Answer Correct Answer: A) Congress and the President. 5. The annual statement of outlays, tax revenues, and surplus and/or deficit of the United States government is called the ..... A) Federal spending. B) US deficit record. C) Federal budget. D) Federal spending plan. Show Answer Correct Answer: C) Federal budget. 6. The nominal GDP is the sum of Consumer Spending, Investment Spending, Government Spending, and Net Exports (C+I+G+(X-M)). REAL GDP is this sum A) Minus profits. B) Adjusted for inflation. C) Plus profits. D) Rarely used. Show Answer Correct Answer: B) Adjusted for inflation. 7. Who among the following are Consumers? A) Firms. B) Households. C) Exporters. D) Banks. Show Answer Correct Answer: B) Households. 8. One problem with a massive amount of national debt is that: A) It might "crowd out" borrowers from the money supply. B) Property taxes are a better option. C) It will take ten thousand years to pay back. D) I would tell you, but you are not going to like it. Show Answer Correct Answer: A) It might "crowd out" borrowers from the money supply. 9. Is this counted in the GDP of the US?Cars made by a US company in South Korea. A) Yes. B) No. Show Answer Correct Answer: B) No. 10. Investment in ..... helps grow the economy by increasing productivity. A) Capital. B) Land. C) Entrepreneurship. D) Labor. Show Answer Correct Answer: A) Capital. 11. The study of the economy as a whole, including countrywide issues and economic relationships between countries. A) Microeconomics. B) GDP. C) Money studies. D) Macroeconomics. Show Answer Correct Answer: D) Macroeconomics. 12. What is the largest goal of for a country A) Steady Economic Growth. B) Unsteady Economic Growth. C) Population Growth. D) Inflation. Show Answer Correct Answer: A) Steady Economic Growth. 13. What factor NOT determine the shift in IS curve? A) Increase in money supply. B) Increase in investment. C) Increase in tax. D) Increase in government expenditure. Show Answer Correct Answer: A) Increase in money supply. 14. The Expenditures Approach of Calculating GDP includes ..... A) All spending on final products in the year. B) All Income made from selling all final goods. C) All costs on all products. D) The ammount of people involved in production. Show Answer Correct Answer: A) All spending on final products in the year. 15. What causes real wages to be so rigid? A) Minimum-wage laws. B) Labor unions. C) Efficiency-wages theory. D) All true. Show Answer Correct Answer: D) All true. 16. GDP per capita A) Total market value of all final, new goods and services produced in a country during a single year. B) Material well-being of an individual, measured by how well their needs and wants are satisfied. C) GDP on a per-person basis; GDP divided by population. D) How the government uses taxes and spending to reach economic goals. Show Answer Correct Answer: C) GDP on a per-person basis; GDP divided by population. 17. What are the three statistics that economists and policymakers use most often? A) Gross Domestic Product (GDP), Consumer Price Index (CPI), and Unemployment Rate. B) Gross National Product (GNP), Inflation Rate, and Stock Market Index. C) Gross Domestic Product (GDP), Interest Rate, and Exchange Rate. D) Gross National Income (GNI), Producer Price Index (PPI), and Labor Force Participation Rate. Show Answer Correct Answer: A) Gross Domestic Product (GDP), Consumer Price Index (CPI), and Unemployment Rate. 18. Cars, TVs, computers belong in which part of the GDP formula? GDP = C+I+G+(X-M) A) Consumption Expenditures. B) Investment Expenditures. C) Government Expenditures. D) Net Imports. Show Answer Correct Answer: A) Consumption Expenditures. 19. Which of the following scenarios show frictional unemployment? A) John got laid-off from work since the company is not making enough money. B) Jeff cannot find work since most blue collar jobs are already filled. C) Ramon quit his jobs to move to Canada for a better job offer. D) Alberto works as a call center agent after graduating nursing. Show Answer Correct Answer: C) Ramon quit his jobs to move to Canada for a better job offer. 20. Samrat produces chicken for self consumption. Is his production counted in NI? A) No-Black Market. B) No-Non-market Activity. C) No-Unreported Income. D) No-Purely financial transaction. Show Answer Correct Answer: B) No-Non-market Activity. ← 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