This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Macroeconomics – Quiz 214 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 214 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What is the formula for finding GDP? A) C+I+G+(X-M). B) B+I+G+(M-X). C) C+I+G+(M-X). D) None of above. Show Answer Correct Answer: A) C+I+G+(X-M). 2. When a bank makes a loan of $ 1, 000, then A) The money supply increases by $ 1, 000. B) The money supply decreases by $ 1, 000. C) Nothing. D) The bank owes the FED $ 1, 000. Show Answer Correct Answer: A) The money supply increases by $ 1, 000. 3. Choose the most accurate definition of "money" . A) Money is anything generally accepted in payment for goods or services or in the repayment of debts. B) Money is anything recognized in trading and transaction for goods. C) Money is legal currency that is released by banks to satisfy the financial needs of the people. D) None of above. Show Answer Correct Answer: A) Money is anything generally accepted in payment for goods or services or in the repayment of debts. 4. The base year is 2005, and the GDP price index in 2004 is 92.0. This implies that the: A) Output in 2005 was higher than in 2004. B) Prices in 2005 were higher than in 2004. C) Output in 2005 was lower than in 2004. D) Output in 2005 was lower than in 2004. Show Answer Correct Answer: B) Prices in 2005 were higher than in 2004. 5. If the CEO of a company can type 100 words per minute and her assistant can type 90 words per minute, who has the comparative advantage? A) The Assistant. B) The CEO. C) Neither. D) None of above. Show Answer Correct Answer: A) The Assistant. 6. What is the central bank of the United States? A) The Federal Reserve. B) Bank of America. C) First National Bank. D) First American Bank. Show Answer Correct Answer: A) The Federal Reserve. 7. Who's economic slowdown has become concerning to other countries (specifically Latin America" ? A) South Africa. B) Turkey. C) China. D) Indonesia. Show Answer Correct Answer: C) China. 8. Which of the following would not be included as part of government spending in GDP calculations? A) Police salaries. B) Road construction. C) Public service salaries. D) Transfer payments. Show Answer Correct Answer: D) Transfer payments. 9. A macroeconomist would study..... A) Economic growth, price stability, and full employment in a country. B) A single product. C) The buying decisions of a single individual. D) Dating tips to increase happiness. Show Answer Correct Answer: A) Economic growth, price stability, and full employment in a country. 10. This is currency that is made from an item that has another use in the productive process, for instance, silk, or corn. A) Commodity Money. B) Specie Money. C) Fiat Money. D) Loan. E) Interest. Show Answer Correct Answer: A) Commodity Money. 11. What is the relationship between a budget deficit and the national debt? A) They are the same. B) The national debt makes a budget deficit more likely. C) A budget deficit adds to the size of the national debt. D) There is no connection between a budget deficit and the national debt. Show Answer Correct Answer: C) A budget deficit adds to the size of the national debt. 12. Gross Domestic Product can be defined as the dollar value of all A) Foreign goods and services produced in the course of a year. B) Final goods and services produced by U.S. workers in the course of a year. C) Final goods and services produced in the U.S. in the course of a year. D) Final goods and services produced by U.S. companies in the course of a year. Show Answer Correct Answer: C) Final goods and services produced in the U.S. in the course of a year. 13. ..... occurs when the value of an asset is reduced by wear, age, or obsolescence. A) Depreciation. B) Appreciation. C) Inflation. D) Deflation. Show Answer Correct Answer: A) Depreciation. 14. The Aot is the microeconomics A) True. B) False. Show Answer Correct Answer: B) False. 15. 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. E) Upward-sloping production possibilities curve. Show Answer Correct Answer: B) A straight-line production possibilities curve has a constant opportunity cost. 16. Fiscal Policy is the means by which the government keeps the economy stable through taxes and expenditures. A) True. B) False. Show Answer Correct Answer: A) True. 17. A situation that shows a continuous decline in the price of a good or service over a relatively short period of time is..... A) Inflation. B) Deflation. C) Appreciation. D) Depreciation. Show Answer Correct Answer: B) Deflation. 18. State levies on certain goods in an Islamic perspective are known as..... A) Zakat. B) Khums. C) J i only has A. D) Kharaj. Show Answer Correct Answer: D) Kharaj. 19. ??? expenditure:Expenditure on physical assets such as roads, bridges, hospital buildings and equipment. Long-term spending that does not necessarily have to be renewed each year A) Capital. B) Current. C) Short-run. D) Long-run. Show Answer Correct Answer: A) Capital. 20. What are the sectors used in the European Union's national accounting conventions? A) The core, business, and public purpose sectors. B) The household and institutions, business, and government sectors. C) The for-profit, nonprofit, and government sectors. D) The government, business, and foreign sectors. E) The household, nonfinancial corporations, financial corporations, government, and "rest of the world" sectors. Show Answer Correct Answer: E) The household, nonfinancial corporations, financial corporations, government, and "rest of the world" sectors. ← 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