This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Macroeconomics – Quiz 215 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 215 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of the following statements indicates that the economy is "healthy" ? A) Prices are falling. B) Prices are rising. C) Prices are stable. D) Prices are changing. Show Answer Correct Answer: C) Prices are stable. 2. Suppose, the nominal interest rate is 0.25 EURO/PLN. You want to sell goods worth 8000PLN. How much are they worth in Germany (in EURO)? A) 1000 EURO. B) 2000 EURO. C) 8000 EURO. D) 32000 EURO. Show Answer Correct Answer: B) 2000 EURO. 3. What is the correct order of the phases of the economic cycle? A) Expansion Early recoveryPeak ContractionThrough. B) ThroughEarly recoveryExpansionContractionPeak. C) Early recoveryPeakExpansionContractionThrough. D) ThroughEarly recoveryExpansionPeakContraction. E) Early recoveryExpansionPeakContractionThrough. Show Answer Correct Answer: E) Early recoveryExpansionPeakContractionThrough. 4. Oligopolistic pricing strategy most likely results in a demand curve that is: A) Kinked. B) Vertical. C) Horizontal. D) None of above. Show Answer Correct Answer: A) Kinked. 5. Sources of funds for investment spending are: A) Consumption by households, government, and foreigners. B) Taxes and transfer payments. C) Always equal to U.S. spending on imports. D) Directed to their most productive uses by the U.S. government. E) Savings by households, government, and foreigners. Show Answer Correct Answer: E) Savings by households, government, and foreigners. 6. The aggregate demand curve is A) The total quantity of an economy's intermediate goods demanded at all price levels. B) The total quantity of an economy's intermediate goods demanded at a particular price level. C) The total quantity of an economy's final goods and services demanded at a particular price level. D) The total quantity of an economy's final goods and services demanded at different price levels. E) None of the above. Show Answer Correct Answer: D) The total quantity of an economy's final goods and services demanded at different price levels. 7. One unit of a particular currency must be able to buy the same amount of goods in all countries. A) Nominal exchange rate. B) Real exchange rate. C) Purchasing power parity. D) Balanced trade. Show Answer Correct Answer: C) Purchasing power parity. 8. Interventionist supply-side policies include A) Deregulation and privatization. B) Trade liberalization. C) Reduction in labor union power. D) Investment in human capita. Show Answer Correct Answer: D) Investment in human capita. 9. Which of the following represent real flow? A) Flow of goods. B) Flow of income. C) Flow of services. D) Flow of goods and services. Show Answer Correct Answer: D) Flow of goods and services. 10. ..... are the interest rates on financial assets that mature within a year. A) Short-Term Interest Rates. B) Long-Term Interest Rates. C) Mid-Term Interest Rates. D) None of above. Show Answer Correct Answer: A) Short-Term Interest Rates. 11. The economy is experiencing rapid inflation, pushing above 9%. which fiscal policy action should the government implement in an attempt to fix this problem? A) Raise taxes. B) Increase spending. C) Decrease Interest Rates. D) Increase reserve requirements. Show Answer Correct Answer: A) Raise taxes. 12. The supply curve of money is A) A upward slope. B) A downward slope. C) A horizontal line. D) A vertical line . Show Answer Correct Answer: D) A vertical line . 13. If demand for a good decreases when people's income increases A) The good is an inferior good. B) The law of demand is violated. C) The good is a normal good. D) The good's demand curve is upward sloping. Show Answer Correct Answer: A) The good is an inferior good. 14. What is the definition of the economic term Opportunity Cost? A) The value of the next best alternative that is given up due to the choice you made. B) The price you pay to purchase something. C) The benefit you gain by making a decision. D) The amount of debt you take on by making a decision. Show Answer Correct Answer: A) The value of the next best alternative that is given up due to the choice you made. 15. An increase in which of the following will cause an increase in the demand for a certain good? A) The price of the good. B) The number of sellers of the good. C) The price of a complementary good. D) The cost of purchasing the good. E) The number of buyers of the good. Show Answer Correct Answer: E) The number of buyers of the good. 16. Which of the following would cause the short-run aggregate supply curve to shift upward (to the left)? A) A decrease in the level of government spending. B) A general increase in raw materials prices. C) An increase in the economy's productive capacity. D) A reduction in the money supply. Show Answer Correct Answer: B) A general increase in raw materials prices. 17. The terms proportional, regressive, and progressive refer to ..... A) Principles of taxation. B) Criteria for effective taxes. C) Types of taxes. D) Benefit principle. Show Answer Correct Answer: C) Types of taxes. 18. True or False-The Federal Reserve is part of the Federal Open Market Committee which conducts monetary policy A) True. B) False. Show Answer Correct Answer: A) True. 19. If only the price for a good or service changes, does the demand curve shift? Why or why not? A) Yes, Price shifts the demand curve to the right because less people are being goods. B) Yes, Price shifts the demand curve to the left because more people are buying goods. C) No, Because price does not shift the curve. Price stays on the line. D) No, because price does not impact the points on the curve. E) Yes and No. The price shifts the curve sometimes, but not always. Show Answer Correct Answer: C) No, Because price does not shift the curve. Price stays on the line. 20. Which of the following is not a limitation of macroeconomics? A) Unable to study aggregate measurements pertaining to an economy. B) Models and theories are abstract and mathematical. C) Does not account for micro level differences. D) Prescribes policies that are too general to solve specific problems. Show Answer Correct Answer: A) Unable to study aggregate measurements pertaining to an economy. ← 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