This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Macroeconomics – Quiz 216 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 216 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. If businesses become optimistic about the profitability of investments in an economy, which of the following will happen in the loanable funds market in the short run? A) The supply and demand for loanable funds will increase. B) The supply and demand for loanable funds will decrease. C) The demand for loanable funds by the private sector will decrease. D) The real interest rate will increase. E) The real interest rate will decrease. Show Answer Correct Answer: D) The real interest rate will increase. 2. A complement example would be all except A) Butter and margarine. B) Peanut-butter and jelly. C) Flashlight and batteries. D) Cameras and film. Show Answer Correct Answer: A) Butter and margarine. 3. The rise in the price of goods is called A) Gross Domestic Product. B) Inflation. C) Consumer Price Index. D) Unemployment Rate. Show Answer Correct Answer: B) Inflation. 4. When a tariff is imposed on a good imported from abroad A) The demand for good increases. B) The demand for the good decreases. C) The supply of the good increases. D) The supply of the good decreases. Show Answer Correct Answer: B) The demand for the good decreases. 5. The world market price of oil falls by 40%. Other things remaining the same, the impact on the UK economy is most likely to be A) An increase in aggregate demand and inflation. B) Deflation and lower output. C) Disinflation and higher output. D) Higher unemployment and inflation. Show Answer Correct Answer: C) Disinflation and higher output. 6. When the Federal Reserve lowers interest rates, hoping to jump-start the employment market, what does it hope it will accomplish with that monetary policy action? A) That the lower interest rates will reduce the money supply to lower inflation. B) That people will begin borrowing enough money so that they do not have to work. C) That enough people will stop borrowing money and increase spending to raise the GDP. D) That businesses will begin increasing investments, which in turn, will cause a need for more employees. Show Answer Correct Answer: D) That businesses will begin increasing investments, which in turn, will cause a need for more employees. 7. When revenue expenditure is greater than revenue receipts it is called A) Fiscal deficit. B) Primary deficit. C) Revenue deficit. D) None of these. Show Answer Correct Answer: C) Revenue deficit. 8. Identify the study concerned in macroeconomics A) Method of production and cost. B) The impact of wage reduction on agro-production. C) The reaction of Malaysian to the changes of petrol price. D) The general price levels. Show Answer Correct Answer: D) The general price levels. 9. When the demand for a product or service is higher than the supply this causes what? A) Shortage. B) Surplus. C) Consumer. D) Equilibrium. Show Answer Correct Answer: A) Shortage. 10. The ups and downs that the nation's economy goes through are officially referred to as A) A roller coaster. B) The business cycle. C) Expansion. D) Economic indicators. Show Answer Correct Answer: B) The business cycle. 11. What are the only two things consumers can buy in this world? A) Needs and wants. B) Goods and services. C) Physical capital and human capital. D) Products and items. E) None of the above. Show Answer Correct Answer: B) Goods and services. 12. If consumers become pessimistic, the economy is likely to experience a: A) Negative demand shock. B) Positive demand shock. C) Negative supply shock. D) Positive supply shock. Show Answer Correct Answer: A) Negative demand shock. 13. How often is GDP calculated? A) Every 2 years. B) Every 4 years. C) Every year. D) Every quarter. Show Answer Correct Answer: C) Every year. 14. A worker in Thailand can earn $ 2 per day making cotton cloth on a hand loom. A worker in the US can earn $ 80 per day making cotton cloth with a mechanical loom. What accounts for the difference in wages? A) US textile workers belong to a union. B) There is little demand for cotton cloth in Thailand and great demand in the US. C) Labor is more productive making cotton cloth with a mechanical loom than with a hand loom. D) Worker expectations are lower in Thailand then in the US. E) Thailand has a low-wage policy to make its textile industry more competitive in world markets. Show Answer Correct Answer: C) Labor is more productive making cotton cloth with a mechanical loom than with a hand loom. 15. What is the main goal of economic stability? A) To achieve high inflation rates. B) To achieve low unemployment rates. C) To achieve fluctuating price levels. D) To achieve rapid economic growth. Show Answer Correct Answer: B) To achieve low unemployment rates. 16. The following monetary policy instruments, except..... A) Open-market operations. B) Changes the reserve-deposit ratio. C) Changes in interest rate. D) Changes in exchange rate. Show Answer Correct Answer: D) Changes in exchange rate. 17. If two countries have the same GDP, then the economic well-being of both countries should be the same. A) True. B) Lie. Show Answer Correct Answer: B) Lie. 18. A medium of exchange is ..... A) Something that is generally acceptable in exchange for goods and services. B) A legally recognized asset that is generally accepted in exchange for goods and services. C) Something that circulates and provides a standardized means of evaluating the relative price of goods and services. D) The ability of money to command purchasing power in the future. Show Answer Correct Answer: A) Something that is generally acceptable in exchange for goods and services. 19. Which of the following is the best example of physical capital? A) A $ 100, 000 business loan from a bank. B) A business hiring 10, 000 workers at a factory. C) A truck for a delivery company. D) An oven for a family of four. E) An increase in construction jobs. Show Answer Correct Answer: C) A truck for a delivery company. 20. Inflation only affects consumers who have high incomes. 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