This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Macroeconomics – Quiz 199 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 199 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of the following policies will most likely stimulate economic growth A) A tax credit on investment spending. B) Elimination of copyright and patent protection laws. C) A reduction in funding for education. D) Change of the Social Security retirement age from sixty-five to fifty-eight. E) Increased government regulations for research and development. Show Answer Correct Answer: A) A tax credit on investment spending. 2. Why is the Federal Reserve known as the "banker's bank" ? A) The Fed sets interest rates at the banks for consumer lending. B) The Fed contains the personal deposits of bank presidents around the county. C) The Fed insures deposits at the bank for up to $ 250, 000. D) The Fed can use the discount rate to loan money directly to banks. Show Answer Correct Answer: D) The Fed can use the discount rate to loan money directly to banks. 3. Depreciation reserve fund is needed for: A) Inventory stock. B) Advertisement. C) Replacement investment. D) None of these. Show Answer Correct Answer: C) Replacement investment. 4. The study of the allocation ( or use ) of scarce ( or limited ) resources to satisfy unlimited and competing want r A) Markets. B) Macroeconomics. C) Economics. D) Microeconomics. Show Answer Correct Answer: C) Economics. 5. If the government lowers taxes and increases spending, this is likely to lead to ..... inflation A) Public-pushed. B) Demand-pulled. C) Cost-pushed. D) Hyperinflation. Show Answer Correct Answer: B) Demand-pulled. 6. In factors income profits include which of the following A) Dividend + corporate tax + corporate savings. B) Dividend + net retain earnings + corporate tax. C) None of the above. D) Both 1 and 2. Show Answer Correct Answer: D) Both 1 and 2. 7. This tax is designed to take the same percentage of income regardless of how much money you make. A) Regressive Tax. B) Proportional Tax. C) Progressive Tax. D) None of above. Show Answer Correct Answer: B) Proportional Tax. 8. When a production possibilities frontier shifts outward (to the right), it is demonstrating the concept of: A) Tradeoffs. B) Efficiency. C) Economic growth. D) Opportunity cost. Show Answer Correct Answer: C) Economic growth. 9. Which of the following is the most likely effect of a government policy that leads to more development of technology used by firms throughout an economy? A) A negative supply shock and a higher price level. B) A positive demand shock and a lower growth rate. C) A positive supply shock and higher growth rate. D) A positive supply shock and a higher price level. E) A negative demand shock and a lower price level. Show Answer Correct Answer: C) A positive supply shock and higher growth rate. 10. Which labor union-employer relationship best describes the term collective bargaining? A) A third-party helps labor union and employer settle their dispute or disagreement. B) A group of workers decide to negotiate with their employer for higher wages. Show Answer Correct Answer: B) A group of workers decide to negotiate with their employer for higher wages. 11. Suppose an economy is currently in a recession. Assume the government then undertakes expansionary fiscal policy, but not enough to move the economy to the full employment level of output. Based on the AD/AS model, what would we expect to be the most likely outcome of this policy in the short run? A) An increase in output but little change in inflation. B) A decrease in inflation and no change in output. C) An increase in inflation and no change in output. D) A decrease in output but little change in inflation. E) An increase in output but a large increase in inflation. Show Answer Correct Answer: A) An increase in output but little change in inflation. 12. The outer circle in the circular flow diagram is the flow of ..... A) Goods, services, and productive resources. B) Money. C) Aggregate supply and demand. D) Price and quantity. Show Answer Correct Answer: B) Money. 13. Which of the following situations will benefit lenders of fixed interest rate loans? A) The actual inflation rate is equal to the natural rate of unemployment. B) The actual inflation rate is less than the expected inflation rate. C) The actual inflation rate is equal to the fixed interest rate. D) The consumer price index is greater than 100. E) There is no cyclical unemployment. Show Answer Correct Answer: B) The actual inflation rate is less than the expected inflation rate. 14. What is included in microeconomics? A) The calculation of national income and expenditure. B) The effects of a change in exchange rates on the trade balance of an economy. C) The effects of an increase in the price of a good or service. D) The factors leading to demand-pull inflation. Show Answer Correct Answer: C) The effects of an increase in the price of a good or service. 15. The aggregate supply curve is a positive relationship between the price level and the level of economy in a given period. A) TRUE. B) FALSE. Show Answer Correct Answer: A) TRUE. 16. When is the budget of a government described as balanced? A) When direct taxes and indirect taxes are equal. B) When exports and imports are equal. C) When government spending and revenue are equal. D) When the demand for money and the supply of money are equal. Show Answer Correct Answer: C) When government spending and revenue are equal. 17. Which of the following is the most appropriate fiscal policy for recession? A) Decreases in government spending. B) Increases in interest rate. C) Decreases in tax rate. D) Increases in tax rate. Show Answer Correct Answer: C) Decreases in tax rate. 18. Macroeconomics theory studies the following except how ..... A) To determine international trade activities. B) To determine the equilibrium income in an economy. C) To determine the unemployment and inflation rate. D) To determine type and quantity of goods to produced. Show Answer Correct Answer: D) To determine type and quantity of goods to produced. 19. Is this counted in the GDP of the US?A new home that was recently built. A) Yes. B) No. Show Answer Correct Answer: A) Yes. 20. Under which of the following conditions would a restrictive monetary policy be most appropriate? A) High inflation. B) High unemployment. C) Full employment with stable prices. D) Lower interest rates. E) A budget deficit. Show Answer Correct Answer: A) High inflation. ← 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