This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Macroeconomics – Quiz 217 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 217 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The High Rock City Shoe Company has been forced to downsize. Which is the most likely effect of such an action? A) More of the company's stock will be sold at a higher price. B) Many unskilled laborers who work for the company will lose their jobs. Show Answer Correct Answer: B) Many unskilled laborers who work for the company will lose their jobs. 2. A ..... is a phenomenon in which many of a bank's depositors try to withdraw their funds due to fears of a bank failure. A) Bank Run. B) Discount Window. C) Reserve Run. D) Excess Reserve. Show Answer Correct Answer: A) Bank Run. 3. Disposable income is ..... A) Marginal Propensity to Consume. B) Marginal Propensity to Save. C) Personal Income less Taxes. D) All of the above choices are true. Show Answer Correct Answer: C) Personal Income less Taxes. 4. India's economy grew by approximately 7% in 2016. What must have increased in India in 2016? A) Gross domestic product. B) Labor productivity. C) The government's budget deficit. D) The rate of inflation. Show Answer Correct Answer: A) Gross domestic product. 5. The federal government levies a tax on personal income to provide for A) National defense and law enforcement. B) Veterans and foreign affairs. C) Social programs like food and housing assistance and college grants. D) All answers shown. Show Answer Correct Answer: D) All answers shown. 6. How many phases make up the business cycle? A) 2. B) 4. C) 6. D) 8. Show Answer Correct Answer: B) 4. 7. Represents the monetary value of all goods and services produced within a nation's geographic borders over a specified period of time A) GDP. B) Aggregate Supply. C) Aggregate Demand. D) Inflation Rate. Show Answer Correct Answer: A) GDP. 8. Who wrote the book The Wealth of Nations? A) John Hancock. B) Adam Smith. C) Alexander Bell. D) John Hamilton. Show Answer Correct Answer: B) Adam Smith. 9. Inflation reduced people's purchasing power because A) The same amount of money buys ore goods and services. B) The same amount of money buys fewer goods and services. C) The market basket has to be changed every year. D) There is not enough money in the economy. Show Answer Correct Answer: B) The same amount of money buys fewer goods and services. 10. TRUE or FALSE:Satellite accounts measure the value of natural capital in physical terms, without necessarily converting into dollar terms. A) TRUE. B) FALSE. Show Answer Correct Answer: A) TRUE. 11. Which will not shift the supply curve? A) Natural Disasters. B) Price of inputs. C) Price of complementary products. D) New technology. Show Answer Correct Answer: C) Price of complementary products. 12. What is the TRUE definition of inflation? A) Inflation:The continuous increase in general level of price which then reduces the population income & purchasing power of money. B) Inflation:The process of inflating baloons to celebrate economic prosperity of the country. C) Inflation:A term used to describe the increase in the number of items available in grocery store to provide more options for consumers. D) None of above. Show Answer Correct Answer: A) Inflation:The continuous increase in general level of price which then reduces the population income & purchasing power of money. 13. When governments run budget surpluses, what is done with the extra funds? A) Invest in military expansion. B) Distribute it as cash payments to citizens. C) Pay off existing debt, invest in infrastructure, or create a reserve fund. D) Use it to increase government salaries . Show Answer Correct Answer: C) Pay off existing debt, invest in infrastructure, or create a reserve fund. 14. The Federal Reserve can increase ....., which makes banks more selective when loaning out money A) Reserve Requirements. B) Percentage/Earnings Ratios. C) Dividends. D) Blue Chip Stocks. Show Answer Correct Answer: A) Reserve Requirements. 15. In the short run an increase in the money supply is likely to lead to A) Lower unemployment and lower inflation. B) Lower unemployment and higher inflation. C) Higher unemployment and lower inflation. D) Higher unemployment and higher inflation. E) Higher unemployment but will have no effect on inflation. Show Answer Correct Answer: B) Lower unemployment and higher inflation. 16. Decrease in the overall level of prices is A) Inflation. B) Deflation. C) Hyperinflation. D) None of them. Show Answer Correct Answer: B) Deflation. 17. The change in total costs of producing one additional unit of output is called: A) Variable cost. B) Average total cost. C) Marginal cost. D) Opportunity cost. Show Answer Correct Answer: C) Marginal cost. 18. An increase in government spending with no change in taxes leads to a A) Lower income level. B) Lower price level. C) Smaller money supply. D) Higher interest rate. E) Higher bond price. Show Answer Correct Answer: D) Higher interest rate. 19. Which of the following area is a part of Macro-Economics Study? A) Individual Markets. B) Effect of Price on specific Goods. C) Evaluation of GDP Levels. D) Study of Individual consumer behavior. Show Answer Correct Answer: C) Evaluation of GDP Levels. 20. This is the term for the total amount of all goods and services in the economy that households, businesses, and government will buy at each level of prices? A) Aggregate Equilibrium. B) Aggregate Demand. C) Aggravated Surplus. D) Aggregate Supply. Show Answer Correct Answer: B) Aggregate Demand. ← 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