This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Macroeconomics – Quiz 20 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 20 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Samuel Gompers was the leader A) National Labor Union. B) Knights of Labor. C) American Federation of Labor. D) American Railway Union. Show Answer Correct Answer: C) American Federation of Labor. 2. The process of bringing down the rate of inflation that has become embedded in expectations is known as A) Disinflation. B) Deflation. C) Negative inflation. D) Debt deflation. E) Monetary policy. Show Answer Correct Answer: A) Disinflation. 3. Decisions made by the government on its expenditure, taxation and borrowing A) Fiscal policy. B) Monetary policy. C) Supply-side policies. D) Indirect taxes. Show Answer Correct Answer: A) Fiscal policy. 4. Who is hurt by unanticipated inflation? A) -Lenders (people who lend money at fixed interest rates)-People with fixed incomes-Savers. B) -Borrowers (people who borrow money)-A business where the price of the product increases faster than the price of resources. C) -Above 16 years-Able/willing to work-Not institutionalized (jail/hospital)-Not in military, in school full time, or retired. D) None of above. Show Answer Correct Answer: A) -Lenders (people who lend money at fixed interest rates)-People with fixed incomes-Savers. 5. If 1 $ = Rs. 50, and if rises to 1 $ = Rs. 60 it will be called A) Appreciation. B) Depreciation. C) Revaluation. D) All the above. Show Answer Correct Answer: B) Depreciation. 6. Which is a correct statement about mixed economies today A) There are more mixed economies in the world than any other kind. B) Very few economies today can be accurately described as "mixed.". C) Mixed economies exist mostly in nations with communist governments. D) Most nations that once had a mixed economy have evolved into command economies. Show Answer Correct Answer: A) There are more mixed economies in the world than any other kind. 7. In the Keynesian aggregate-expenditure model, if the MPC is 0.75 and gross investment increases by $ 6 billion, equilibrium GDP will increase by A) $ 6 billion. B) $ 8 billion. C) $ 1.25 billion. D) $ 24 billion. Show Answer Correct Answer: D) $ 24 billion. 8. TRUE or FALSE:From 2008 onwards, the European Union has made significant progress towards its Europe 2020 goal of reducing poverty and social exclusion. A) TRUE. B) FALSE. Show Answer Correct Answer: B) FALSE. 9. Describe the effects of the Federal Reserve raising interest rates five times in 2022 A) Price level decreases (PL2 B) Price level decreases (PL2Ymax). C) Price level increases (PL2>PL1) and employment decreases (Yf D) Price level increases (PL2>PL1) and employment increases (Yf>Ymax). Show Answer Correct Answer: A) Price level decreases (PL2 10. When personal incomes increase at the same rate as the inflation rate, purchasing power increases. A) True. B) False. Show Answer Correct Answer: B) False. 11. In perfect competition how much control of price does one seller have? A) Absolute. B) A fair amount of control. C) Considerable. D) No control. Show Answer Correct Answer: D) No control. 12. The amount of money at which a product or service can be bought or sold. A) Price. B) Input. C) Income. D) Market. Show Answer Correct Answer: A) Price. 13. Which of the following will not increase the productivity of labor? A) Technological improvements. B) An increase in the capital stock. C) Improvements in education. D) An increase in the size of the labor force. E) A lower literacy rate. Show Answer Correct Answer: D) An increase in the size of the labor force. 14. Which of the following headlines indicates the use of monetary policy? A) "More money in everyone's pockets as taxes are lowered". B) "Government declares its determination to halt the fall in the value of money". C) "Misery for homeowners as interest rates are raised". D) "Big reduction in government borrowing announced in the budget". Show Answer Correct Answer: C) "Misery for homeowners as interest rates are raised". 15. Which type of economy involves trading, and doesn't usually use money? A) Market. B) Command. C) Mixed. D) Traditional. Show Answer Correct Answer: D) Traditional. 16. The nation of Swampastan produces only two goods, chips and dip. Calculate the GDP for Swampastan if dip retails for $ 3.00 a pound and 10 pounds are produced while chips sell for $ 2.00 a pound and 20 pounds are produced. A) $ 1, 200.00. B) $ 150.00. C) $ 30.00. D) $ 70.00. Show Answer Correct Answer: D) $ 70.00. 17. Payment made by the government to help a producer to continue to operate is ..... A) Subsidy. B) Tariff. C) Tax. D) Remittance. Show Answer Correct Answer: A) Subsidy. 18. Which of the following is not considered investment? A) The acquisition of capital goods. B) The purchase of government bonds. C) The increase in planned inventories. D) The construction of a new factory. Show Answer Correct Answer: B) The purchase of government bonds. 19. One of the main responsibilities of "The Fed" is to implement ..... policy. A) Monetary. B) Taxation. C) Spending. D) All of the Above. Show Answer Correct Answer: A) Monetary. 20. It consists of one or more individuals. They are the primary users of products or services. A) CORPORATE. B) People. C) Government. D) Household. Show Answer Correct Answer: D) Household. ← 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