This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Macroeconomics – Quiz 212 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 212 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. When the government uses revenue and spending to manipulate the economy A) Fiscal Policy. B) Monetary Policy. C) Fiscal Year. D) Tax Exempt. Show Answer Correct Answer: A) Fiscal Policy. 2. What was created to protect bank deposits up to $ 5, 000 (and now protects up to $ 250, 000)? A) WPA. B) CCC. C) TVA. D) FDIC. Show Answer Correct Answer: D) FDIC. 3. Which statement best describes corporations in the United States? A) They exist only for as long as their founders live. B) They are legal organizations with the right to own property. C) Shareholders are personally liable for corporate losses. D) Shareholders must get approval to sell their stock. Show Answer Correct Answer: B) They are legal organizations with the right to own property. 4. A deficit in the United States trade balance can be described as A) An excess of the value of imports over the value of exports. B) An excess of the value of exports over the value of imports. C) A resulting outcome of the depreciation of the United States dollar in foreign exchange markets. D) An almost complete depletion of the gold stock. E) An excess of receipts from foreigners over payments to foreigners. Show Answer Correct Answer: A) An excess of the value of imports over the value of exports. 5. The example of machinery in a factory is an example of which of the 4 factors of production? A) Land. B) Labor. C) Capital. D) Entrepreneurship. Show Answer Correct Answer: C) Capital. 6. Workers at the community Swim center will experience what type of unemployment? A) Frictional. B) Structural. C) Cyclical. D) Seasonal. Show Answer Correct Answer: D) Seasonal. 7. A sum of money, sufficient to support a decent standard of living, given to every person in society, regardless of their need or existing wealth A) Universal Basic Income (UBI). B) Universal Job Guarantee (UJG). C) Universal Basic Services (UBS). D) Democratic Socialism. Show Answer Correct Answer: A) Universal Basic Income (UBI). 8. Households' decision to buy less rice reduced the profit of rice farmers. Which branch of economics covers the changes to the rice farmers profits? A) Microeconomics. B) Macroeconomics. Show Answer Correct Answer: A) Microeconomics. 9. How will a contractionary fiscal policy affect a budget deficit? A) Not affect it. B) Grow the deficit. C) Shrink the deficit. D) Change monetary policy. Show Answer Correct Answer: C) Shrink the deficit. 10. Potential GDP is NOT one of the following. A) GDP at full employment. B) GDP when all resources employed are at full capacity. C) Actual GDP. D) GDP when resources are all used up. Show Answer Correct Answer: C) Actual GDP. 11. A decrease in the demand for tomatoes increases the equilibrium price and decreases the equilibrium quantity. A) True. B) False. Show Answer Correct Answer: B) False. 12. What is the equation of GDP? A) C + I + (X+N). B) C + I + G. C) C + I + G + (X-N). D) C + G + U + (X+N). Show Answer Correct Answer: C) C + I + G + (X-N). 13. Which best describes a state sales tax on all retail purchases? A) Progressive tax. B) Proportional tax. C) Regressive tax. D) None of above. Show Answer Correct Answer: C) Regressive tax. 14. Which of the following is true of the meaning of balanced government budget balance? A) Government revenue equals government expenditure. B) Government revenue is greater than government expenditure. C) Government revenue is less than government expenditure. D) All the points are correct. Show Answer Correct Answer: A) Government revenue equals government expenditure. 15. The natural rate of unemployment in Mithrim is 5%, and the current rate of unemployment is 2%. Also, the consumer price index (CPI) has been increasing rapidly.Which of the following combinations of monetary and fiscal policy would be appropriate to return this economy to full employment? A) Increasing taxes; lower the discount rate. B) Decreasing taxes; buy bonds. C) Increase government spending; sell bonds. D) Increasing taxes; increasing government spending. E) Increasing taxes; open market sales. Show Answer Correct Answer: E) Increasing taxes; open market sales. 16. Which of the following is NOT measured in GDP? A) Illegal narcotics sales. B) Running a plumbing business. C) Selling produce. D) Buying an American-made car. Show Answer Correct Answer: A) Illegal narcotics sales. 17. The ..... Interest Rate is the interest rate actually paid for a loan, whereas the ..... Interest Rate is the nominal interest rate minus the rate of inflation. A) Nominal; Real. B) Real; Nominal. Show Answer Correct Answer: A) Nominal; Real. 18. Which of the following is a major influence on AS? A) Consumption. B) The quality of the factors available. C) Government spending. D) None of above. Show Answer Correct Answer: B) The quality of the factors available. 19. What is the amount of a good or service that consumers are willing and able to purchase at a given price called? A) Quantity supplied. B) Quota. C) Quantity demanded. D) Supply. Show Answer Correct Answer: C) Quantity demanded. 20. It is the continuing increase of the general price level in the market. A) Inflation. B) Deflation. C) Stagflation. D) Recession. Show Answer Correct Answer: A) Inflation. ← 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