This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Macroeconomics – Quiz 193 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 193 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What is the value of a nations currency in relation to a foreign country? A) Trade Deficit. B) Foreign Exchange Market. C) Exchange Rate. D) Trade Surplus. Show Answer Correct Answer: C) Exchange Rate. 2. ..... are senior executives who have been elected by the company's shareholders to direct business operations on behalf of their owners. A) Managers. B) Directors. C) Employees. D) Supervisors. Show Answer Correct Answer: B) Directors. 3. Who developed the IS-LM Model? A) J. M. Keynes. B) Adam Smith. C) Hicks and Hansen. D) Hawtrey. Show Answer Correct Answer: C) Hicks and Hansen. 4. How may fiscal policy increase total (aggregate) demand? A) By cutting the rate of interest. B) By cutting the rate of taxation. C) By increasing the budget surplus. D) By increasing the money supply. Show Answer Correct Answer: B) By cutting the rate of taxation. 5. Choose the Best Answer.Jessica works for more than 40 hours weekly. Although her educational background is not aligned to her current job, she still has no intention to leave her current job. In this case, Jessica falls in what labor category? A) Visibly underemployed. B) Invisibly underemployed. C) Employed. D) Unemployed. Show Answer Correct Answer: C) Employed. 6. Which of the following statements is associated with general equilibrium analysis? A) Equilibrium in the market of gold ornaments. B) Equilibrium across all markets in the economy. C) Equilibrium price of a good in the competitive market. D) None of these. Show Answer Correct Answer: B) Equilibrium across all markets in the economy. 7. What is aggregate demand (AD)? A) The willingness and ability to purchase a product at a given price. B) The total spending on services in a period of time at a given price level. C) The total spending on goods and services in a period of time at a given price level. D) The total demand for a product in an industry. Show Answer Correct Answer: C) The total spending on goods and services in a period of time at a given price level. 8. Lowering interest rates can have what negative economic effect? A) Prices may inflate. B) Prices may not inflate. C) There isn't a negative effect. D) Unemployment will decrease. Show Answer Correct Answer: A) Prices may inflate. 9. Any human-made resource or skill to fulfill a good or service A) Land. B) Capital. C) Labor. D) Entrepreneurship. Show Answer Correct Answer: B) Capital. 10. The act of the Fed processing millions of checks per day for banks. A) Bank panic. B) Bond. C) Reserve requirement. D) Check clearing. Show Answer Correct Answer: D) Check clearing. 11. According to money neutrality, the only long run effect of an increase in the money supply is to ..... A) Raise aggregate price level by an equal percentage. B) Lower aggregate price level by an equal percentage. Show Answer Correct Answer: A) Raise aggregate price level by an equal percentage. 12. Which of the following is a leakage from the circular flow of income? A) Government spending. B) Imports. C) Investments. D) Exports. Show Answer Correct Answer: B) Imports. 13. Stagflation is the result of A) A leftward shift in the aggregate supply curve. B) A leftward shift in the aggregate demand curve. C) A leftward shift in both the aggregate supply and aggregate demand curve. D) A rightward shift in the aggregate supply curve. E) A rightward shift in the aggregate demand curve. Show Answer Correct Answer: A) A leftward shift in the aggregate supply curve. 14. A country's living standard is best measured by the: A) Per capita nominal GDP. B) Real GDP. C) Nominal GDP. D) Per capita real GDP. E) Unemployment rate. Show Answer Correct Answer: D) Per capita real GDP. 15. The study of the behaviors and decisions made by individuals, households, and firms; economic decisions of individuals and firms/ producers and consumers A) Microeconomics. B) Macroeconomics. C) Command Economies. D) Gross Domestic Product. Show Answer Correct Answer: A) Microeconomics. 16. What does FOMC stand for? A) Federal Open Money Committee. B) Federal Operational Money Corporation. C) Federal Open Market Committee. D) Federal Operational Market Corporation. Show Answer Correct Answer: C) Federal Open Market Committee. 17. Cars, TVs, computers belong in which part of the GDP formula?GDP = C+I+G+(X-M) A) Consumption Expenditures (Consumer Spending). B) Investment Expenditures (Business Spending). C) Government Expenditures (Gov't Spending). D) Net Imports (Imports-Exports). Show Answer Correct Answer: A) Consumption Expenditures (Consumer Spending). 18. Stage of Production:1. Lemon grower sell lemons to lemonade producers for $ 10, 0002. Lemonade producer sell Lemonade to wholesaler for $ 15, 000Lemonade wholesalers sell to retailers (grocery Stores) for $ 20, 000Lemonade Retailers sell to consumer for $ 22, 000What is the value-added by the retailer? A) $ 10, 000. B) $ 2, 000. C) $ 5, 000. D) $ 22, 000. Show Answer Correct Answer: B) $ 2, 000. 19. A computer programmer writing software has the highest levels of education. This type of job falls under the category of ..... A) Unskilled labor. B) Semi-skilled labor. C) Skilled labor. D) Professional labor. Show Answer Correct Answer: D) Professional labor. 20. The primary purpose of taxes is to A) Provide goods and services that are too expensive for people to buy. B) Provide services that improve our quality of life. C) Take money from one group and give it to another. D) Allow people to have free goods and services. Show Answer Correct Answer: B) Provide services that improve our quality of life. ← 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