This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Macroeconomics – Quiz 209 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 209 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What is meant by incidence of taxation? A) How the tax burden is shared between consumers and producers. B) The extent to which tax is evaded. C) What proportion of the country's products are taxed. D) Who receives the tax revenue raised. Show Answer Correct Answer: A) How the tax burden is shared between consumers and producers. 2. The most unpleasant sport to your favorite teacher is: A) Swimming. B) Cycling. C) Soccer. D) Football. Show Answer Correct Answer: C) Soccer. 3. If the consumer price index rises from 120 to 132, what is the inflation rate? A) 8%. B) 10%. C) 12%. D) 20%. Show Answer Correct Answer: B) 10%. 4. The addition of money in circulation by the Central Bank is called..... A) Monetary contraction. B) Monetary expansion. C) Monetary transactions. D) Monetary appreciation. Show Answer Correct Answer: B) Monetary expansion. 5. Which of the following best describes "a general increase in the level of prices for goods and services overtime" ? A) Deflation. B) Macroeconomics. C) Inflation. D) Depression. Show Answer Correct Answer: C) Inflation. 6. Which of the following is included in the calculation of GDP? A) Taxes. B) Intermediate goods. C) Used goods. D) Domestically produced capital goods. Show Answer Correct Answer: D) Domestically produced capital goods. 7. GDP is a method of calculating how much a country produces by adding together Consumption Spending + ..... + Government Spending + ..... A) Interest Rates, Net Exports. B) Tax Revenue, Imports. C) Investment, Net Exports. D) Wages, Imports. Show Answer Correct Answer: C) Investment, Net Exports. 8. In which way does a straight line production possibilities curve differ from a concave production possibilities curve? A) A straight line production possibilities curve has a decreasing opportunity cost. B) A straight line production possibilities curve has a constant opportunity cost. C) A straight line production possibilities curve has an increasing opportunity cost. D) A straight line production possibilities curve does not show opportunity cost. Show Answer Correct Answer: B) A straight line production possibilities curve has a constant opportunity cost. 9. Suppose the Eurostat classifies 135 million people as employed and the unemployment rate is 10%. How many people are in the labor force in this example? A) 140 million. B) 148.5 million. C) 150 million. D) 165 million. E) We don't have enough information to determine the size of the labor force. Show Answer Correct Answer: C) 150 million. 10. Characteristics of perfect competition include A) A large number of buyers and sellers. B) One firm dominates. C) A few firms dominate. D) Competition is missing. Show Answer Correct Answer: A) A large number of buyers and sellers. 11. Janet Yellin has nothing to do with The Fed. A) True. B) False. Show Answer Correct Answer: B) False. 12. People have so many reasons to hold their money. Choose of the following situation to describe the reasons?i. to pay transportation servicesii. to buy groceriesiii. to make a profitable investmentiv. to pay hospital bills A) I, ii and iii only. B) Ii, iii and iv only. C) I, ii and iv only. D) All of the above. Show Answer Correct Answer: D) All of the above. 13. Crowding out occurs when government borrowing leads to an increase in A) Real GDP. B) Inflation. C) Consumer confidence. D) Unemployment. E) Interest rates. Show Answer Correct Answer: E) Interest rates. 14. Hint what to you earn from a business? A) Taxes. B) Income. C) Savings. D) Investment. Show Answer Correct Answer: B) Income. 15. Which of the following equations represents Aggregate Demand A) GDP = X + I + C + (Y-Z). B) GDP = C + I + G + (X-M). C) GDP = C + I + X + (G-T). D) GDP = (1/MPS)*G + I + C. Show Answer Correct Answer: B) GDP = C + I + G + (X-M). 16. The key word "compare" describes which role of money? A) Unit of account/standard of value. B) Medium of exchange. C) Store of value. D) None of above. Show Answer Correct Answer: A) Unit of account/standard of value. 17. If this economy devotes one-half of its available resources to the production of baseballs and the other half to the production of bananas, it could produce A) 150 bananas and 100 baseballs. B) 150 bananas and 150 baseballs. C) 200 bananas and 200 baseballs. D) 300 bananas and 200 baseballs. E) We would have to know the details of this economy's technology in order to determine this. Show Answer Correct Answer: E) We would have to know the details of this economy's technology in order to determine this. 18. Contractionary monetary policy A) Increases fiscal policy. B) Decreases the money supply. C) Decrease interest rates. D) Increases consumer spending. Show Answer Correct Answer: B) Decreases the money supply. 19. Recovery of loan is: A) Revenue receipt. B) Capital receipt. C) Revenue expenditure. D) Capital expenditure. Show Answer Correct Answer: B) Capital receipt. 20. Government operating expenditure consists of A) Pensions and gratuities. B) Agriculture and transport. C) Housing and medical. D) Communication and mineral resources. Show Answer Correct Answer: A) Pensions and gratuities. ← 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