This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Macroeconomics – Quiz 194 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 194 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Assume that the lemons are all grown, processed into lemonade, and sold to domestic consumers during the same year. What is the impact on GDP for that year? A) Adds $ 22, 000 to GDP. B) Adds $ 67, 000 to GDP. C) Adds $ 10, 000 to GDP. D) Adds $ 12, 000 to GDP. Show Answer Correct Answer: A) Adds $ 22, 000 to GDP. 2. For a recession to exist real GDP needs to decline for at least ..... quarters or more. A) 2 (6 months). B) 4 (12 months). C) 6 (18 months). D) 8 (24 months). Show Answer Correct Answer: A) 2 (6 months). 3. In a 100-percent reserve banking system, if people decided to decrease theamount of currency they held by increasing the amount they held in checkabledeposits A) M1 would increase. B) M1 would decrease. C) M1 would not change. D) M1 might rise or fall. Show Answer Correct Answer: C) M1 would not change. 4. Which is NOT an effect of Expansionary Fiscal Policy A) Encourage consumer spending and investment. B) Increase Real GDP. C) Increase Price Level. D) Decrease Employment. Show Answer Correct Answer: D) Decrease Employment. 5. What is the PCE deflator? A) A measure of the price of goods and services bought by consumers. B) A measure of the price of all goods and services produced. C) A measure of the increase in the cost of living. D) A measure of how quickly prices are rising. Show Answer Correct Answer: A) A measure of the price of goods and services bought by consumers. 6. What do you call an economic policy that is designed to influence the aggregate demand in order to control the economy? A) Spending policy. B) National policy. C) Fiscal policy. D) Monetary policy. Show Answer Correct Answer: C) Fiscal policy. 7. Episode 2 of " Commanding heights " opened with a segment about the city of ....., whose existence originated with A) East Berlin; the construction of the Berlin Wall in 1961. B) Norilsk; its being a prison camp in the Soviet Gulag system. C) New York; the state of Manhattan Island by the Lenape Indians to Dutch Settlers for just 60 guilders. D) Oak Ridge, Tennessee; the development of the atomic bomb. Show Answer Correct Answer: B) Norilsk; its being a prison camp in the Soviet Gulag system. 8. What are the factors that contribute to unemployment? A) Economic conditions, technological advancements, globalization, education and skill levels, government policies, and demographic factors. B) Lack of job opportunities, low wages, overpopulation, natural disasters, lack of infrastructure, and discrimination. Show Answer Correct Answer: A) Economic conditions, technological advancements, globalization, education and skill levels, government policies, and demographic factors. 9. In the circular flow diagram, which of the following is true? A) Businesses pay wages, rent, interest, and profits to households in return for use of factors of production. B) Businesses purchase goods and services from households in return for money payments. C) Households pay wages, rent, interest, and profits to businesses in return for use of factors of production. D) The relationship between households and businesses exist only in a traditional society. E) The relationship between households and businesses exists only in command economy. Show Answer Correct Answer: A) Businesses pay wages, rent, interest, and profits to households in return for use of factors of production. 10. Between what percent is the "normal" average of unemployment for the United States? A) 1 to 3%. B) 4 to 6%. C) 7 to 10%. D) 11 to 15%. Show Answer Correct Answer: B) 4 to 6%. 11. Net factor income from abroad is A) Factor income received from abroad. B) Factor income received from abroad minus factor income paid abroad. C) Visible exports minus visible imports. D) Exports minus imports. Show Answer Correct Answer: B) Factor income received from abroad minus factor income paid abroad. 12. When WalMart pays income taxes, what two parts of the circular flow model are involved? A) Consumers and producers. B) Businesses and government. C) Consumers and government. D) Producers and consumers. Show Answer Correct Answer: B) Businesses and government. 13. Which of these is a possible impact of HS2? A) Loss of jobs. B) Environmental costs e.g. noise and air pollution. C) Increase in the quantity of imports. D) Hyper-inflation. Show Answer Correct Answer: B) Environmental costs e.g. noise and air pollution. 14. Which of the following is NOT a factor that economists would look at to determine economic health? A) CPI. B) GDP. C) Price Elasticity. D) Unemployment. Show Answer Correct Answer: C) Price Elasticity. 15. True or False:A majority of the federal government's revenue is collected through personal income taxes. A) False. B) True . Show Answer Correct Answer: B) True . 16. A temporary unemployment which exists during the period of the transfer of labor from one occupation to another is called A) Voluntary Unemployment. B) Involuntary Unemployment. C) Cyclical Unemployment. D) Frictional Unemployment. Show Answer Correct Answer: D) Frictional Unemployment. 17. Real GDP is a good indicator of the stage of the business cycle. A) True. B) Lie. Show Answer Correct Answer: A) True. 18. What would a trend of increasing unemployment over an extended period indicate? A) A contraction phase of the business cycle. B) A decrease in the number of aid recipients. C) Large wage reduction. D) Decreasing stock dividends. Show Answer Correct Answer: A) A contraction phase of the business cycle. 19. Value of current gross domestic product adjusted for inflation A) GDP. B) Real GDP. C) Inflation. D) None of above. Show Answer Correct Answer: B) Real GDP. 20. In the short run, an increase in the money supply will ..... prices and ..... real GDP A) Increase, increase. B) Decrease, decrease. C) Increase, decrease. D) Decrease, increase. Show Answer Correct Answer: A) Increase, increase. ← 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