This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Macroeconomics – Quiz 205 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 205 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which statement about natural resources is true? A) Water is renewable because it can be reproduced. B) Lumber is not renewable because it takes a long time to grow new trees. C) Coal is renewable because there is so much of it still in the ground. D) Agricultural products are renewable because new crops can be grown each season. Show Answer Correct Answer: D) Agricultural products are renewable because new crops can be grown each season. 2. Assume that a tire company sells 5 tires to an automobile company for $ 500, another company sells a compact disc player for $ 400, and the automobile company puts all of these items in or on a car that it sells for $ 20, 000. In this case, the amount from these transactions that should be counted in GDP is A) $ 20, 000. B) $ 20, 000 less the automobile company's profit on the car. C) $ 20, 900. D) $ 20, 900 less the profits of all three companies on the items that they sold. Show Answer Correct Answer: A) $ 20, 000. 3. Adam Smith is considered the "father" of what Economic system? A) Communism. B) Socialism. C) Capitalism. D) Traditional Economy. Show Answer Correct Answer: C) Capitalism. 4. Roads, telephone lines, power facilities, and schools are examples of a nation's: A) Technostructure. B) Infrastructure. C) Physiostructure. D) Sociostructure. E) Political structure. Show Answer Correct Answer: B) Infrastructure. 5. TRUE or FALSE:The Human Development Index is based upon measures of life expectancy, education and literacy, and GDP per capita. A) TRUE. B) FALSE. Show Answer Correct Answer: A) TRUE. 6. Money that is issued by the authority of the government is called- A) Full bodied money. B) Fiat money. C) Fuduciary money. D) All the above. Show Answer Correct Answer: B) Fiat money. 7. For a bank, a loan would be considered a(n) ....., while a business would consider the same loan to be a(n) ..... A) Asset, liability. B) Liability, asset. Show Answer Correct Answer: A) Asset, liability. 8. Balance of trade is measure as A) Difference between import and export of goods. B) Difference between import and export of services. C) Difference between import and export of capital. D) Difference between all exports and all imports. Show Answer Correct Answer: A) Difference between import and export of goods. 9. Movement within the workforce is known as ..... unemployment. A) Frictional. B) Stuctural. C) Seasonal. D) Cyclical. Show Answer Correct Answer: A) Frictional. 10. Which of the following Federal Reserve actions would most likely help counteract an oncoming recession? A) An increase in government bonds and an increase in the discount rate. B) The sale of government bonds and an increase in the discount rate. C) An increase in reserve requirements. D) The purchase of government bonds and a reduction in the discount rate. E) Raise the interest rate paid on reserves. Show Answer Correct Answer: D) The purchase of government bonds and a reduction in the discount rate. 11. All other things being equal, an economy is most likely to experience demand-pull inflationary pressure when it has A) A high rate of productivity growth. B) A positive output gap. C) An increase in the value of its exchange rate. D) An increase in the rate of interest. Show Answer Correct Answer: B) A positive output gap. 12. The institution that releases figures for Indonesia's Gross Domestic Product or Indonesia's Economic Growth is A) Fiscal policy Agency. B) Bank Indonesia. C) Central Bureau of Statistics. D) Bappenas. Show Answer Correct Answer: C) Central Bureau of Statistics. 13. Match the following description with the factor that impacts growth in developing nations:Tropical parts of the world have more diseases and less good farm land. A) Geography and Natural Resources. B) Free Trade. C) Investments in Human Capital. D) Economy. Show Answer Correct Answer: A) Geography and Natural Resources. 14. ..... is the view that individuals and firms make decisions optimally, using all available information. A) Rational Expectations. B) Macroeconomic Policy Activism. C) Discretionary Monetary Policy. D) Monetary Policy Rule. Show Answer Correct Answer: A) Rational Expectations. 15. A positive impact on investments could be due to A) Better funding conditions. B) Higher interest rates. C) Higher tariffs abroad. D) None of above. Show Answer Correct Answer: A) Better funding conditions. 16. A percentage charged above and beyond the actual value of the loan, this must also be paid back. A) Commodity Money. B) Specie Money. C) Fiat Money. D) Loan. E) Interest. Show Answer Correct Answer: E) Interest. 17. Shows the relationship between the aggregate price level and the quantity of aggregate output supplied in the economy A) Aggregated Supply. B) Aggregated Demand. C) Budget. D) Labor force. Show Answer Correct Answer: A) Aggregated Supply. 18. Consumer confidence falls, which causes consumers to save their money & postpone big purchases. What is the immediate effect on aggregate demand, price level & aggregate supply? A) AD decreases, price level decreases & unemployment decreases. B) AD decreases, lowering both real GDP & the price level. C) AS will decrease, raising the price level & lowering real GDP. D) AS will increase, price level decreases & real GDP will increase. Show Answer Correct Answer: B) AD decreases, lowering both real GDP & the price level. 19. The Consumer Price Index is used to help measure the amount of ..... in the U.S. to better help achieve the goal of ..... A) Inflation, price stability. B) Money, monetary policy. C) Unemployment, full employment. D) Change, economic stability. Show Answer Correct Answer: A) Inflation, price stability. 20. In a budget ....., expenses are higher than revenues. A) Balanced. B) Deficit. C) Surplus. D) None of above. Show Answer Correct Answer: B) Deficit. ← 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