This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Macroeconomics – Quiz 201 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 201 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The highest legal price that can be charged for a product: A) Price. B) Price ceiling. C) Price floor. D) Target price. Show Answer Correct Answer: B) Price ceiling. 2. If the Fed wants to increase the cost of loans, then it should adjust ..... A) Open Market Operations. B) The Reserve Ratio. C) The Discount Rate. D) None of above. Show Answer Correct Answer: C) The Discount Rate. 3. Eating at a restaurant is an example of ..... spending on ..... goods. A) Government; durable. B) Investment; durable. C) Consumer; non-durable. D) Export; non-durable. Show Answer Correct Answer: C) Consumer; non-durable. 4. The short-run aggregate supply curve will shift to the right when A) Energy prices increase. B) Government regulation increases. C) Prices of inputs decrease. D) Productivity rates decrease. Show Answer Correct Answer: C) Prices of inputs decrease. 5. Have spending and taxes by state and local governments in the United States had a generally upward or downward trend in the last few decades? A) The trend has been generally downward. B) The trend in spending and taxes by state and local governments in the United States has generally been upward in the last few decades. C) There has been no significant trend in spending and taxes. D) The trend has been fluctuating with no clear direction. Show Answer Correct Answer: B) The trend in spending and taxes by state and local governments in the United States has generally been upward in the last few decades. 6. Malaysia's current unemployment rate is 3.7%; however, Malaysia is currently not in a recession. What are the types of unemployment that Malaysia is facing currently? A) Frictional and Structural Unemployment. B) Cyclical and Frictional Unemployment. C) Cyclical unemployment only. D) Structural and Cyclical unemployment. Show Answer Correct Answer: A) Frictional and Structural Unemployment. 7. Odd One Out.Which does not belong to the group? A) Waiting for job rehire/job application. B) Bad weather. C) Believes no work is available for him/her. D) Still studying. Show Answer Correct Answer: D) Still studying. 8. How do the Philippine economy join the foreign sector? A) Through international conferences. B) Through foreign investments, foreign loans and international trade. C) Through foreign visitations. D) None of above. Show Answer Correct Answer: B) Through foreign investments, foreign loans and international trade. 9. GDP measures the: A) Total market value of intermediate goods and services produced by the citizens of a country in a given year. B) Total market value of all final goods and services produced in an economy in a given year. C) Change in total employment at U.S. owned firms over the course of a given year. D) Change in production levels at U.S. owned firms measured quarterly. Show Answer Correct Answer: B) Total market value of all final goods and services produced in an economy in a given year. 10. Which of the following is wrong about inflation A) Inflation reduces money value. B) Demand pull inflation before reaching full employment causes increase in income and output. C) Cost push inflation shifts supply curve rightward. D) Cost push inflation is caused by an increase in cost of production. Show Answer Correct Answer: C) Cost push inflation shifts supply curve rightward. 11. Consists of all claims against the government which may have resulted from loans or advances extended to the Philippine government or as payment for goods and services rendered to it for which the existence of the government has been acknowledge by the government. A) Public funds. B) Public debts. C) Government borrowings. D) Government funds. Show Answer Correct Answer: B) Public debts. 12. If short-run equilibrium in the Mundell-Fleming model is represented by a graph with Y along the horizontal axis and the exchange rate along the vertical axis, then the IS curve: A) Slopes downward and to the right because the higher the exchange rate, the lower the level of net exports and, therefore, of short-run equilibrium income in the goods market. B) Is vertical because there is only one investment level that is consistent with the world interest rate. C) Is vertical because the exchange rate does not enter into the IS equation. D) Slopes downward and to the right because the higher the exchange rate, the higher the level of net exports and, therefore, of short-run equilibrium income in the goods market. Show Answer Correct Answer: A) Slopes downward and to the right because the higher the exchange rate, the lower the level of net exports and, therefore, of short-run equilibrium income in the goods market. 13. Form used to file income taxes. A) Withholding. B) Tax return. C) Taxable income. D) Tax credit. Show Answer Correct Answer: B) Tax return. 14. As an outdoor lifeguard, you don't have control over your end date, but you expect it and can plan for it. A) Frictional unemployment. B) Seasonal unemployment. C) Cyclical unemployment. D) Structural unemployment. Show Answer Correct Answer: B) Seasonal unemployment. 15. What shows the quantities of products demanded at each price by ALL consumers in the market A) An elasticity and consumption list. B) A schedule of consumer prices. C) A market pricing lists. D) A market demand schedule. Show Answer Correct Answer: D) A market demand schedule. 16. 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 aggregate consumption (in dollars) for the open economy? A) C = 20 + 0.56Y. B) C = 20 + 0.7Y. C) 147.27. D) 227.27. Show Answer Correct Answer: C) 147.27. 17. Reduction in a car's value due to age and wear-and-tear is known as: A) Appreciation. B) Stagnation. C) Depreciation. D) Inflation. Show Answer Correct Answer: C) Depreciation. 18. Of the following, which is not included in the calculation of disposable income? A) Employee transportation allowance. B) Interest on consumer loans. C) EPF contributions. D) Distributed corporate profit. Show Answer Correct Answer: C) EPF contributions. 19. The Mundell-Fleming model assumes that: A) Prices are flexible, whereas the IS-LM model assumes that prices are fixed. B) Prices are fixed, whereas the IS-LM model assumes that prices are flexible. C) As in the IS-LM model, prices are fixed. D) As in the IS-LM model, prices are flexible. Show Answer Correct Answer: C) As in the IS-LM model, prices are fixed. 20. The four factors of production are:land, labor, capital, entrepreneurship A) Land, labor, capital, entrepreneurshipa decrease in the input price for production. B) The knowledge and skills that workers acquire through education, training, and experience. C) A decrease in the input price for production. D) Specialization in production. Show Answer Correct Answer: A) Land, labor, capital, entrepreneurshipa decrease in the input price for production. ← 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