This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Macroeconomics – Quiz 190 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 190 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of the following is the best measurement of a country's living standard? A) Nominal GDP. B) Real GDP. C) GDP per capita. D) Real GDP per capita. Show Answer Correct Answer: D) Real GDP per capita. 2. Refers to an overall increase in the Consumer Price Index A) Demand. B) Supply. C) Recession. D) Inflation Rate. Show Answer Correct Answer: D) Inflation Rate. 3. What is competitive advantage? A) Conditions that allow a company to make stuff at equal price or a lower price. B) When a company can make stuff faster than other companies. C) A government tax. D) The same thing as GDP. Show Answer Correct Answer: A) Conditions that allow a company to make stuff at equal price or a lower price. 4. Circular flow A) Flow of good and services between firms and households. B) Flow of income and expenditure between firms and households. C) All of the above. D) None of the above. Show Answer Correct Answer: C) All of the above. 5. Macroeconomics studies what? A) A science that studies the opposite of microeconomics. B) Knowledge that studies individual attitudes in making a decision. C) The science that studies the economy as a whole. D) Science that studies trading activities in general. Show Answer Correct Answer: C) The science that studies the economy as a whole. 6. The way in which a family plans for a vacation to Disney World A) Macroeconomics. B) Microeconomic. Show Answer Correct Answer: B) Microeconomic. 7. The short-run aggregate supply curve shifts in response to a change in: A) Consumption. B) Government purchases. C) Overall costs of production. D) All of the above. Show Answer Correct Answer: C) Overall costs of production. 8. A recession is..... A) A short term downfall of economic activity. B) A long term downfall of economic activity. C) A general increase in economic activity. D) None of above. Show Answer Correct Answer: A) A short term downfall of economic activity. 9. Economic agent is the individuals, groups or organizations that carry out economic activity and that take economic decisions. A) TRUE. B) FALSE. Show Answer Correct Answer: A) TRUE. 10. A central bank's changing of the money supply to influence interest rates and assist the economy in achieving price level stability, full-employment, and economic growth is known as what? A) Fiscal policy. B) Tax policy. C) Monetary policy. D) Treasury policy. Show Answer Correct Answer: C) Monetary policy. 11. Which of the following is not an example of infrastructure? A) Suburbs. B) Roads. C) Power Lines. D) Information Networks. Show Answer Correct Answer: A) Suburbs. 12. Which one of the following is an intermediate product? A) Purchases of pulses by consumers. B) Machine purchased by a firm. C) Wheat purchased by a flour mill. D) Wheat used by households. Show Answer Correct Answer: C) Wheat purchased by a flour mill. 13. The most common number used to measure economic growth is A) Gross Domestic Product. B) Consumer Price Index. C) Unemployment Rate. D) Production Possibilities Curve. Show Answer Correct Answer: A) Gross Domestic Product. 14. Economic Activity Achievement Monitoring Tools, except..... A) National Income (GNP). B) The rate of change in prices. C) Labor utilization and unemployment. D) Currency. E) Trade balance and balance of payments. Show Answer Correct Answer: D) Currency. 15. Accepting deposits from individuals and firms and providing loans to the public are the basic function of ..... A) Central bank. B) Merchant bank. C) Commercial bank. D) Insurance Companies. Show Answer Correct Answer: C) Commercial bank. 16. If interest rates are reduced to near zero, then monetary policy is ineffective, it is called..... A) Liquidity Trap. B) Depression. C) Inflation. D) Tax. Show Answer Correct Answer: A) Liquidity Trap. 17. If the government raises taxes on businesses, AS will? A) AS increases. B) AS decreases. C) AD decreases. D) None of above. Show Answer Correct Answer: B) AS decreases. 18. The dollar value of all final goods and services produced within a country's borders in one year. Most important measure of economic growth A) Gross Domestic Product. B) GDP Per Capita. C) Real GDP. D) Nominal GDP. Show Answer Correct Answer: A) Gross Domestic Product. 19. If Mrs. Murat left her job to go back to college to get her administration degree. A) Frictional unemployment. B) Seasonal unemployment. C) Cyclical unemployment. D) Structural unemployment. Show Answer Correct Answer: A) Frictional unemployment. 20. A change in the expected price level shifts A) The aggregate-demand curve. B) The short-run aggregate-supply curve, but not the long-run aggregate-supply curve. C) The long-run aggregate-supply curve, but not the short-run aggregate-supply curve. D) Both the short-run and the long-run aggregate-supply curves. Show Answer Correct Answer: B) The short-run aggregate-supply curve, but not the long-run aggregate-supply curve. ← 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