This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Macroeconomics – Quiz 191 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 191 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of the following are responsible for making fiscal policy decision? A) The President and Congress. B) The Federal Reserve System. C) The National Council of Economic Advisors. D) The commerce Department. Show Answer Correct Answer: A) The President and Congress. 2. A ..... takes place when firms involved in different steps of manufacturing or marketing come together. A) Horizontal merger. B) Diagonal merger. C) Circular merger. D) Vertical merger. Show Answer Correct Answer: D) Vertical merger. 3. An event that shows a general and continuous increase in prices is called..... A) Inflation. B) Deflation. C) Devaluation. D) Recession. Show Answer Correct Answer: A) Inflation. 4. What factor that determine the labor supply under Keynesian? A) Real wage. B) Nominal wage. C) Expected real wage. D) Expected nominal wage. Show Answer Correct Answer: C) Expected real wage. 5. Last year, the CPI (Consumer Price Index) was equal to 110. This year, the CPI is equal to 121. What is the inflation rate this year? A) 6 percent. B) 10 percent. C) 11 percent. D) 12 percent. Show Answer Correct Answer: B) 10 percent. 6. The revenue maximized when: A) MPL=W/P. B) MPL=R/P. C) MPK=R/P. D) MPK=W/P. Show Answer Correct Answer: A) MPL=W/P. 7. Which of the following might upset the board of directors in a corporation? A) If the company's stocks are bought on an exchange. B) If the company's stocks are sold on an exchange. C) If the company's stocks increase in value. D) If the company's stocks lose value. Show Answer Correct Answer: D) If the company's stocks lose value. 8. Which one of the following is most likely to lead to a supply-side improvement in an economy? An increase in A) Innovation by firms. B) The availability of imports. C) Government spending on welfare benefits. D) Company taxation to reduce the government's budget deficit. Show Answer Correct Answer: A) Innovation by firms. 9. The payments workers receive in return for work. A) Wages. B) Wage Rate. C) Human Capital. D) Glass Ceiling. Show Answer Correct Answer: A) Wages. 10. What are the four characteristics of a "good tax?" A) Small, Funds Education, Easily Paid, Fun. B) Estate, Income, Corporate, Proportional. C) Withholding, Gift, Federal, State. D) Simplicity, Efficiency, Certainty, Equity. Show Answer Correct Answer: D) Simplicity, Efficiency, Certainty, Equity. 11. Who may be eligible for survivor benefits through the Social Security system? A) The parents of a deceased worker. B) The spouse and children of a deceased worker. C) The siblings of a deceased worker. D) All of the above. Show Answer Correct Answer: B) The spouse and children of a deceased worker. 12. In the circular flow diagram, which section is where business purchase productive resources needed to make products? A) Product market. B) Factor market. C) Households. D) Firms. Show Answer Correct Answer: B) Factor market. 13. Which statement(s) is/are correct regarding capital expenditure? A) They create liability. B) They create assets. C) They reduce liability. D) They reduce assets. E) They create assets and (or) reduce liability. Show Answer Correct Answer: E) They create assets and (or) reduce liability. 14. Primary sector comprises..... A) Manufacturing, construction, utility supply such as electricity, gas and water. B) Agriculture, forestry, fishing, mining, farming. C) Banking, transportation, communication, wholesale, retailing. D) Services and banking. Show Answer Correct Answer: B) Agriculture, forestry, fishing, mining, farming. 15. The commercial banking system creates money when banks A) Decreae loans to business. B) Sell stock to the public. C) Purchase bonds from the Fed. D) Make loans to the public. Show Answer Correct Answer: D) Make loans to the public. 16. Which is the instrument of monetary policy? A) Taxes. B) Government Expenditure. C) Income received from households. D) Legal cash reserve requirement. Show Answer Correct Answer: D) Legal cash reserve requirement. 17. Every decision involves trade-offs. What is this called? A) Goods. B) Services. C) Opportunity cost. D) Involuntary trade. Show Answer Correct Answer: C) Opportunity cost. 18. Balance on BOT can be: A) Surplus. B) Balanced. C) Deficit. D) Any of the above. Show Answer Correct Answer: D) Any of the above. 19. The term when govt budget deficit raising real interest rate and decrease investment is called A) Ricardo-barro effect. B) Crowding-in effect. C) Multiplier effect. D) Crowding-out effect. Show Answer Correct Answer: D) Crowding-out effect. 20. Limitations of using market-based supply-side policies to increase the level of economic activity do no include A) Inflationary pressures. B) Time lags. C) The negative impact on the natural environment. D) Pressure of the government's budget. Show Answer Correct Answer: A) Inflationary pressures. ← 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