This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Macroeconomics – Quiz 195 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 195 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. A table showing the quantities produced or offered for sale at each and every possible price in the market at a given point in time. A) Supply schedule. B) Demand schedule. C) Supply curve. D) Market supply curve. Show Answer Correct Answer: A) Supply schedule. 2. If the total labor force is 1000 and the number of unemployed individuals is 200, what is the unemployment rate? A) 20. B) 50. C) 30. D) 10. Show Answer Correct Answer: A) 20. 3. Which of the following is NOT an example of a public good? A) Fireworks display. B) National Defense. C) Public transportation. D) Lighthouse. Show Answer Correct Answer: A) Fireworks display. 4. A free market economy solves its central problem through A) Planning authority. B) Market mechanism. C) Both. D) None of above. Show Answer Correct Answer: C) Both. 5. A change in which variable in the quantity theory of money is most likely to cause large and sustained changes in prices? *a. Y, the real GDP.b. V, velocity of money.c. M, the money supply.d. None of the above. A) Y, the real GDP. B) V, velocity of money. C) M, the money supply. D) None of the above. Show Answer Correct Answer: C) M, the money supply. 6. Changes are regularly made to the weights used in the UK's Consumer Prices Index. This means that the index takes account of changes in A) Month by month increases in the general price level. B) Spending patterns throughout the economy. C) The growth of real output in the economy. D) Total spending on all domestic goods and services. Show Answer Correct Answer: B) Spending patterns throughout the economy. 7. According to the analysis of the British economist John Maynard Keynes A) Markets coordinate supply and demand so that a policy of laissez-faire would prevent recession. B) Economic fluctuations were the cumulative result of mistakes made by businesses and households in an uncertain world. C) Government demand could be used to smooth fluctuations in aggregate output and income. D) Supply creates its own demand through the circular flow of economic activity. Show Answer Correct Answer: C) Government demand could be used to smooth fluctuations in aggregate output and income. 8. TRUE or FALSE:The largest component of the manufactured capital stock in Europe is inventories. A) TRUE. B) FALSE. Show Answer Correct Answer: B) FALSE. 9. What is the Federal Open Market Committee (FOMC)? A) The monetary policy making body of the Federal Reserve System. B) The legislative body responsible for passing fiscal policies. C) The committee that determines the federal funds rate. D) The committee that oversees government budget deficits. Show Answer Correct Answer: A) The monetary policy making body of the Federal Reserve System. 10. If exports are to be increased then the currency of a country should be A) Appreciated. B) No change. C) Depreciated. D) Appreciated or depreciated. Show Answer Correct Answer: C) Depreciated. 11. Economics is the study of how to allocate resources A) True. B) False. Show Answer Correct Answer: A) True. 12. Gross Domestic Product (GDP) is A) A measure of all goods and services produced by a country. B) Import vs. export exchange rates. C) The volume of disgusting products produced by a national economy. D) The volume of grain, meat, and vegetables that a nation exports. Show Answer Correct Answer: A) A measure of all goods and services produced by a country. 13. Why does contractionary monetary policy cause interest rates to rise? A) Contractionary monetary policy increases the money supply, leading to higher demand for the remaining funds, which in turn causes interest rates to rise. B) Contractionary monetary policy reduces the money supply, leading to higher demand for the remaining funds, which in turn causes interest rates to rise. C) Contractionary monetary policy has no impact on the money supply, so interest rates remain unchanged. D) Contractionary monetary policy reduces the money supply, leading to lower demand for the remaining funds, which in turn causes interest rates to rise. Show Answer Correct Answer: B) Contractionary monetary policy reduces the money supply, leading to higher demand for the remaining funds, which in turn causes interest rates to rise. 14. All the following are monetary policy instruments, except ..... A) Legal cash reserve requirements. B) Government expenditure. C) Open market operations. D) Funding. Show Answer Correct Answer: B) Government expenditure. 15. Explaining the effect of higher wage rates on a company's supply decision A) Macroeconomics. B) Microeconomic. Show Answer Correct Answer: B) Microeconomic. 16. What type of income is earned by pulling rickshaw to a rickshaw puller? A) Transfer income. B) Windfall gains. C) Factor income. D) All of the above. Show Answer Correct Answer: C) Factor income. 17. If real gross domestic product is declining, the economy is most likely experiencing which of the following? A) Increasing unemployment. B) Negative long-run economic growth. C) Inflationary pressures. D) An increase in aggregate demand. E) A recovery. Show Answer Correct Answer: A) Increasing unemployment. 18. Imagine you are the head of the Federal Reserve System. You need to take certain actions to influence the level of real GDP and the rate of inflation in the economy. What kind of policy would you use? A) Fiscal Policy. B) Monetary Policy. C) Congressional Policy. D) Executive Policy. Show Answer Correct Answer: B) Monetary Policy. 19. Trade surplus = A) Output>spendingexports>imports. B) Output C) Output>spendingexports D) Outputimports. Show Answer Correct Answer: A) Output>spendingexports>imports. 20. Economic system that has characteristics of both a market and command economy A) Market. B) Command. C) Traditional. D) Mixed. Show Answer Correct Answer: D) Mixed. ← 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