This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Macroeconomics – Quiz 202 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 202 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of the following shifts the aggregate supply curve to the right? A) An increase in the price of crude oil. B) A successful wage push by workers. C) Expectations of a higher aggregate price level. D) A technological improvement that increases worker productivity. Show Answer Correct Answer: D) A technological improvement that increases worker productivity. 2. What is a macroeconomic concept? A) The effect of a price change of a good. B) The equilibrium price in the market for a good. C) The reason for a change in a firm's behaviour. D) The total spending in an economy. Show Answer Correct Answer: D) The total spending in an economy. 3. All other things being equal, an economy has a budget surplus when A) Exports are greater than imports. B) Tax revenue is greater than government spending. C) Government tax revenue increases at a faster rate than its spending. D) Government spending is greater than tax revenue. Show Answer Correct Answer: B) Tax revenue is greater than government spending. 4. The money demand curve shows A) The various amounts of money that individuals will hold at different price levels. B) The various amounts of money that individuals will spend at different levels of GDP. C) The various amounts of money that individuals will hold at different nominal interest rates. D) The quantity of bonds that the Fed will buy at different price levels. Show Answer Correct Answer: C) The various amounts of money that individuals will hold at different nominal interest rates. 5. Crowding out has what effect on the SRAS and AD demand model? A) Shifts aggregate demand to the right. B) Shifts aggregate demand to the left. C) Shifts short run aggregate supply to the right. D) Shifts short run aggregate supply to the left. Show Answer Correct Answer: B) Shifts aggregate demand to the left. 6. Which of the following represents a case of structural unemployment? A) There has been increasingly heavy competition for jobs in sectors affected by automation. B) The rate of hiring by large companies fell considerably during the last economic recession. C) A large restaurant laid off the new servers it hired to work during the busy tourist season. D) There are a large number of job opportunities in the technology sector that call for rare skills. Show Answer Correct Answer: D) There are a large number of job opportunities in the technology sector that call for rare skills. 7. Which one of the following is most likely to lead to a fall in aggregate investment? A) A reduction in the level of unemployment. B) An increase in spare capacity in the economy. C) A reduction in the average level of interest rates. D) An increase in aggregate demand. Show Answer Correct Answer: B) An increase in spare capacity in the economy. 8. Which one of the following is a correct statement about monetary policy in the UK? A) Monetary policy does not affect the supply side of the economy. B) When the government uses contractionary fiscal policy, the Bank of England will use expansionary monetary policy to offset the effects. C) Lower interest rates may reduce deflationary pressure but they may also reduce savings. D) Monetary policy may involve the expansion of the money supply to reduce aggregate demand. Show Answer Correct Answer: C) Lower interest rates may reduce deflationary pressure but they may also reduce savings. 9. Government measures concerning taxation, public expenditure, and so on is: A) Fiscal policy. B) Monetary policy. Show Answer Correct Answer: A) Fiscal policy. 10. Which of the following statement is incorrect regarding importance of macro economics- A) 1.Understanding and controlling Economic fluctuations. B) 2. Study of Economic Development & Growth. C) 3.Helpful in understanding Macro Economic Paradoxes. D) 4.All are correct. Show Answer Correct Answer: D) 4.All are correct. 11. Which of the following is not considered to be one of the necessary conditions of Mudharabah? A) Profit is to be shared according to the profit sharing ratio determined at the inception of the contract. B) The capital provided cannot pay a periodical salary to the mudharib. C) Loss is to be borne by the capital provider in all cases, even if it is due to the negligence of the mudharib. D) Sub-Mudharabah is not allowed without the permission of the capital provider. Show Answer Correct Answer: C) Loss is to be borne by the capital provider in all cases, even if it is due to the negligence of the mudharib. 12. Which is an example of a RENEWABLE resource? A) Silver. B) Iron. C) Water. D) Gold. Show Answer Correct Answer: C) Water. 13. The "quantity demanded by all consumers in a market" is known as the: A) Individual demand. B) Market demand. C) Market supply. D) Supply and demand. Show Answer Correct Answer: B) Market demand. 14. Which branch of macroeconomics specifically focuses on role of money supply and central bank? A) Monetarism. B) Development Economics. C) Classical School. D) Keynesian School. Show Answer Correct Answer: A) Monetarism. 15. Theamount of money subtracted from the gross income for taxes. Typically about 30%of your paycheck A) Social security. B) Medicare. C) Payroll withholdings. D) Income tax withholdings. Show Answer Correct Answer: C) Payroll withholdings. 16. When quantity supplied and demanded are equal you have ..... A) A surplus. B) A shortage. C) A deficit. D) Equilibrium. Show Answer Correct Answer: D) Equilibrium. 17. The rate of inflation is most commonly measured by use of A) A price deflator. B) The GDP deflator. C) The consumer price index. D) All of the above. Show Answer Correct Answer: C) The consumer price index. 18. All of the following are sections of the circular flow diagram but ..... A) Product market. B) Factor market. C) Firms. D) Flea Market. Show Answer Correct Answer: D) Flea Market. 19. It is intended to provide a general measure of average monthly and annual changes in the retail prices of commodities commonly bought by consumers in the Phils.covering all income households. A) Consumer price index. B) Wholesale price index. C) Retail price index. D) Stock price index. Show Answer Correct Answer: A) Consumer price index. 20. What term means not enough to satisfy unlimited wants? A) Goods. B) Scarcity. C) Services. D) Opportunity Cost. E) Trade-Offs. Show Answer Correct Answer: B) Scarcity. ← 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