This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Macroeconomics – Quiz 206 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 206 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The ..... measures the cost of the market basket of a typical urban American family. A) Consumer Price Index (CPI). B) Producer Price Index (PPI). C) Aggregate Price Level. D) Inflation Rate. Show Answer Correct Answer: A) Consumer Price Index (CPI). 2. Which of the following statements is not true for subjective well-being? A) Subjective well-being is measured using surveys. B) There is no influence of income on measured subjective well-being. C) Income seems to have a stronger influence on subjective well-being at low income levels than at high income levels. D) The Stiglitz-Sen-Fitoussi Commission proposed to include subjective well-being when measuring overall well-being. E) There is by now a large body of scientific research on the subjective well-being indicators. Show Answer Correct Answer: B) There is no influence of income on measured subjective well-being. 3. What is the producer price index? A) A measure of the price of goods bought by consumers. B) A measure of the price of goods bought by firms. C) A measure of the price of specific types of goods. D) A measure of the increase in price of a consumer basket excluding food and energy products. Show Answer Correct Answer: B) A measure of the price of goods bought by firms. 4. The value of the output of all goods and services produced within a country in a year. A) Total output. B) Gross Domestic Product. C) National income. D) Net domestic product. Show Answer Correct Answer: B) Gross Domestic Product. 5. Consumption patterns according to Andro, Brumberg and Modigliani, namely: A) Age 0-age unable to generate his own income:dissaving (he consumes but does not generate income). B) Working age-age when you can no longer work:experiencing a saving period. C) There is no right answer. D) There are no wrong answers. E) Old age, unable to generate income anymore:dissaving. Show Answer Correct Answer: D) There are no wrong answers. 6. Which of the following explains the negative slope of Philip curve A) At higher level of inflation nominal wage increases with the same rate as inflation. B) When price increases real wage increases. C) Real wage falls with the increase in the rate of inflation. D) Unemployment is insensitive to the rate of inflation. Show Answer Correct Answer: C) Real wage falls with the increase in the rate of inflation. 7. When the government raises taxes, what does it take out of circulation? A) Money. B) Credit. C) People. D) Jobs. Show Answer Correct Answer: A) Money. 8. The economy has stable prices, but high unemployment. What is the most likely way to reduce unemployment in the short term? A) Increase taxes. B) Increase imports. C) Increase government spending. D) Decrease government spending. Show Answer Correct Answer: C) Increase government spending. 9. What= A) Currency. B) Currency plus demand deposits, traveler's checks and other checkable deposits. C) M1 plus retail money market mutual fund balances, saving deposits (including money market deposit accounts) and small time deposits. D) None of above. Show Answer Correct Answer: C) M1 plus retail money market mutual fund balances, saving deposits (including money market deposit accounts) and small time deposits. 10. What do debit cards and checks have in common? A) The money comes directly out of your account. B) You can pay the full amount later. C) You are really taking out a small loan. D) None of above. Show Answer Correct Answer: A) The money comes directly out of your account. 11. An economic system based on private ownership of money, land, and labor A) Facism. B) Communism. C) Socialism. D) Capitalism. Show Answer Correct Answer: D) Capitalism. 12. If a country has a population of 1, 000, an area of 100 square miles, and a GDP of $ 5, 000, 000, then its GDP per capita is: A) $ 500. B) $ 5, 000. C) $ 50, 000. D) $ 5, 000, 000. E) $ 50. Show Answer Correct Answer: B) $ 5, 000. 13. Which government agency is NOT tasked with measuring data related to the three big macroeconomic goals? A) Department of Education. B) Federal Reserve Bank. C) Bureau of Economic Analysis. D) Bureau of Labor Statistics. Show Answer Correct Answer: A) Department of Education. 14. ..... Advantage:When a producer can produce more of a good/service than another producer. A) Absolute. B) Consumption. C) Hippopotamus. D) Comparative. Show Answer Correct Answer: A) Absolute. 15. Scope of Macro Economics include- A) 1.Theory of income and employment. B) 2.Theory of money. C) 3.Theory of general price level. D) 4.All the above. Show Answer Correct Answer: D) 4.All the above. 16. Inflation is A) A decrease in overall price levels. B) An increase in production activity. C) An increase in overall price levels. D) Decrease in production activity. Show Answer Correct Answer: C) An increase in overall price levels. 17. Groups of buyers and sellers voluntarily integrating to exchange goods, services, or resources based upon price A) Mixed economy. B) Market. C) Microeconomics. D) Macroeconomics. Show Answer Correct Answer: B) Market. 18. What are some examples of capital resources? A) Starting a business for profit. B) Trees, cows, oil, water, rocks, minerals. C) Doctor, Engineer, Teacher, Worker. D) Truck, building, container, computer. Show Answer Correct Answer: D) Truck, building, container, computer. 19. Monetarist Economics Founded By? A) John Maynard Keynes. B) Adam Smith. C) Milton Friedman. D) David Ricardo. Show Answer Correct Answer: C) Milton Friedman. 20. True or False:The share of the economy going to federal taxes has increased substantially over time. A) True. B) False . Show Answer Correct Answer: B) False . ← 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