This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Macroeconomics – Quiz 197 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 197 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. A budget surplus is A) An excess of government revenues over government expenditures in a given time period. B) An excess of government spending over government revenues in a given time period. C) Used only in time of war. D) None of the choices are correct. Show Answer Correct Answer: A) An excess of government revenues over government expenditures in a given time period. 2. There are different types of taxes, such as income tax and sales tax. What is tax? A) Money collected by the government. B) A plan for using money. C) A car that carries passengers for money. D) The buying and selling of products. Show Answer Correct Answer: A) Money collected by the government. 3. Unexpectedly high inflation ..... savers and ..... borrowers A) Hurts;hurts. B) Hurts;helps. C) Helps;helps. D) Helps;hurts. E) Hurts;doesn't affect. Show Answer Correct Answer: B) Hurts;helps. 4. Which market structure is defined by a single producer? A) Pure competition. B) Monopolistic competition. C) Oligopoly. D) Monopoly. Show Answer Correct Answer: D) Monopoly. 5. Under which of the following conditions would consumer spending be most likely to increase? A) Consumers have large unpaid balances on their credit cards. B) Consumers' wealth is increased by changes in the stock market. C) The government encourages consumers to increase their savings. D) Social security taxes are increased. E) Consumers believe they will not receive pay increases next year. Show Answer Correct Answer: B) Consumers' wealth is increased by changes in the stock market. 6. The Federal Reserve controls what? A) Monetary Policy. B) Fiscal Policy. C) The money supply. D) Interest rates. Show Answer Correct Answer: C) The money supply. 7. In the US, Taxes are levied (imposed & collected) by A) Businesses. B) Parents. C) Foreign countries. D) Government. Show Answer Correct Answer: D) Government. 8. Exists when the amount of revenue exceeds the amount of expenses paid A) Deficit. B) National debt. C) Budget surplus. D) None of above. Show Answer Correct Answer: C) Budget surplus. 9. Macro economics studies long run economic growth and short-run economic fluctuations A) True. B) False. Show Answer Correct Answer: A) True. 10. Suppose autonomous consumption is $ 20, investment is $ 30, government expenditure is 40, net exports 10. Assume the mpc=0.7 and the tax rate=0.2. What is the aggregate expenditure function for the open economy? A) C = 20 + 0.56Y. B) C = 20 + 0.7Y. C) AE = 100 + 0.56Y. D) None of above. Show Answer Correct Answer: C) AE = 100 + 0.56Y. 11. In the quantity theory of money, P and Y represent the price and quantity of:* A) All raw materials and natural resources sold in an economy. B) All financial services sold in an economy. C) All durable capital (tractors, manufacturing equipment) purchased in the economy. D) All finished goods and services sold in an economy. Show Answer Correct Answer: D) All finished goods and services sold in an economy. 12. Britain:8 hours to make a plane and 4 hours to make a tankUS:8 hours to make a plane and 12 hours to make a tank Who has the comparative advantage? A) US. B) Britain. Show Answer Correct Answer: B) Britain. 13. A bank is facing these conditions:assets of $ 15, 000 in total reserves, $ 70, 000 in securities and $ 15, 000 in loans. Liabilities are $ 100, 000 in demand deposits. If the reserve requirement is 12% and the bank doesn't sell any of its securities, the maximum amount of additional lending this bank can undertake is A) $ 15, 000. B) $ 12, 000. C) $ 3, 000. D) $ 1, 800. E) 0. Show Answer Correct Answer: C) $ 3, 000. 14. What causes economic growth? A) The stock market and indexes. B) Increased demand and supply. C) Savings and investments. D) GDP and GNP. Show Answer Correct Answer: B) Increased demand and supply. 15. Which term is used to describe a situation where most people who are looking for work are able to find a job? A) Full employment. B) Seasonal unemployment. C) Frictional unemployment. D) Cyclical unemployment. Show Answer Correct Answer: A) Full employment. 16. It consists of savings deposit and time deposit in commercial banks. A) Deposit substitute. B) Demand deposits. C) Quasi money. D) Coins and bills in circulation. Show Answer Correct Answer: C) Quasi money. 17. Match the following description with the factor that impacts growth in developing nations:A corrupt leader and police force can hinder the development of a nation. A) Geography and Natural Resources. B) History and Government. C) Investments in Human Capital. D) Cultural Beliefs and Religion. Show Answer Correct Answer: B) History and Government. 18. How do you calculate the inflation rate? A) % change in prices = (year 2-year 1)/(year 1) x 100. B) Frictional + structural unemployment. C) (# unemployed)/(# in labor force) x 100. D) C + I + G + Xn. Show Answer Correct Answer: A) % change in prices = (year 2-year 1)/(year 1) x 100. 19. The Taylor rule sets the target federal funds rate based on which of the following? A) The inflation rate only. B) The unemployment rate only. C) The output gap only. D) Both the inflation rate and the unemployment rate. E) Both the output gap and the inflation rate. Show Answer Correct Answer: E) Both the output gap and the inflation rate. 20. Wages, just like the other factors of production are governed by A) Government regulation. B) Supply and demand. C) Labor laws. D) Glass ceiling. Show Answer Correct Answer: B) Supply and demand. ← 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