This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Macroeconomics – Quiz 200 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 200 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. All the following changes to the AD components are likely to effect investment EXCEPT: A) Changes in interest rates. B) Changes in the level of income taxes. C) Technological change. D) Changes in foreign income levels. Show Answer Correct Answer: D) Changes in foreign income levels. 2. It is the measure of a country's total production of final goods and services in a given period of time. A) Gross National Product. B) Gross Domestic Product. C) Exports. D) Imports. Show Answer Correct Answer: B) Gross Domestic Product. 3. Study of macroeconomics is concerned with: A) Theory of demand. B) Determination of aggregate output. C) General price level. D) Both (b) and (c). Show Answer Correct Answer: D) Both (b) and (c). 4. Economics growth is one of the problems of macroeconomics goals. A) TRUE. B) FALSE. Show Answer Correct Answer: B) FALSE. 5. How would cheap lumber from Canada affect the U.S. market for new homes? A) Prices of new homes would increase. B) Credit available for new homes would increase. C) Prices of new homes would decrease. D) Transaction costs for new homes would decrease. Show Answer Correct Answer: C) Prices of new homes would decrease. 6. When the economy goes into a recession, real GDP ..... and unemployment ..... A) Rises, rises. B) Rises, falls. C) Falls, rises. D) Falls, falls. Show Answer Correct Answer: C) Falls, rises. 7. What is the difference between Real GDP and Nominal GDP? A) Real GDP is adjusted for inflation, and Nominal GDP is not. B) Nominal GDP is adjusted for inflation, and Real GDP is not. C) Real GDP is real, and Nominal GDP is made up. D) They are the same. Show Answer Correct Answer: A) Real GDP is adjusted for inflation, and Nominal GDP is not. 8. TRUE or FALSE:The majority of people in the European Union are classified as "not in the labor force" according to Eurostat. A) TRUE. B) FALSE. Show Answer Correct Answer: B) FALSE. 9. Which of the following wrote " The Road of Serfdom A) John Maynard Keynes. B) Friedrich Hayek. C) Milton Friedman. D) Adam Smith. Show Answer Correct Answer: B) Friedrich Hayek. 10. Explaining the effect of higher wages on total production A) Macroeconomics. B) Microeconomic. Show Answer Correct Answer: A) Macroeconomics. 11. When discussing the "Factors of Production, " economists use the term ..... to refer to the time, effort and energy people put into production A) Entrepreneurship. B) Labor. C) Physical Capital. D) All of the Above. Show Answer Correct Answer: B) Labor. 12. Long-run economic growth is ..... if it can continue in the face of the limited supply of natural resources and the impact of growth on the environment. A) Sustainable. B) Unsustainable. C) Untenable. D) Brief. Show Answer Correct Answer: A) Sustainable. 13. Which of the following people would be considered part of the workforce (labor force)? A) Bob works in the laundry room at the state prison where he's serving a five year sentence. B) Four months ago, Lee retired and now travels the country with her husband in their RV. C) Becky quit her job six months ago to care for her elderly mother. D) Jackie recently graduated from college and has her third interview scheduled at her neighborhood high school. Show Answer Correct Answer: D) Jackie recently graduated from college and has her third interview scheduled at her neighborhood high school. 14. Which one of the following variables is NOT included in the calculations for the Human Development Index? A) Economic inequality. B) Life expectancy. C) School enrollment. D) GDP per capita. E) Literacy rates. Show Answer Correct Answer: A) Economic inequality. 15. Which of the following situation describes unemployment? A) Robert is a full-time student. B) Sharon just graduated from college. C) George earns 70 pesos an hour. D) Gene works after school as a bagger at a local grocery store. Show Answer Correct Answer: B) Sharon just graduated from college. 16. Suppose the AD curve remains stable but technology increases the productive capacity of an economy at full employment. Based on the AD/AS model, what would we expect to be the most likely outcome of this situation? A) A decrease in output and an increase in inflation. B) A decrease in output and a decrease in inflation. C) An increase in output and an increase in inflation. D) An increase in output and a decrease in inflation. E) A decrease in inflation and no change in output. Show Answer Correct Answer: D) An increase in output and a decrease in inflation. 17. A boom in the business cycle is best described by a situation when: A) GDP is steady or rising slowly. B) There are generally idle resources and excess capacity exists. C) General prices are rising and there is cyclical unemployment. D) There are widespread shortages of goods and services because national production is stretched beyond the economy's capacity. Show Answer Correct Answer: D) There are widespread shortages of goods and services because national production is stretched beyond the economy's capacity. 18. Unlike a market economy, a command economy uses A) More centralized planning in economic decision making. B) Consumer sovereignty to make production decisions. C) Its resources more efficiently. D) Price signals in economic decision making. E) The popular vote in making resource allocation decisions. Show Answer Correct Answer: A) More centralized planning in economic decision making. 19. An organization that exists to create a better society and fix societal ills A) Nonprofit. B) Mediation. C) Royalties. D) Liability. Show Answer Correct Answer: A) Nonprofit. 20. ..... is monetary policy that increases aggregate demand. A) Expansionary Monetary Policy. B) Contractionary Monetary Policy. C) Stagnant Monetary Policy. D) None of above. Show Answer Correct Answer: A) Expansionary Monetary Policy. ← 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