This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Macroeconomics – Quiz 218 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 218 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. When people are in the process of looking for a job after being fired or are transitioning to a new position, this is called? A) Frictional Unemployment. B) Structural Unemployment. C) Cyclical Unemployment. D) None of above. Show Answer Correct Answer: A) Frictional Unemployment. 2. Which of the following economist is not a part of Life Cycle Hypothesis? A) Albert Ando. B) Richard Brumberg. C) Modigliani. D) James Dusenberry. Show Answer Correct Answer: D) James Dusenberry. 3. Accommodating items are undertaken to Maintain the balance in BOP account. A) True. B) False. Show Answer Correct Answer: A) True. 4. Which of the following would tend to increase aggregate demand? A) A reduction in the overall wealth of the society. B) Pessimistic expectations about the future. C) A reduction in the money supply. D) A reduction in tax rates. Show Answer Correct Answer: D) A reduction in tax rates. 5. What does the unemployment rate measure? A) The number of people who have never worked. B) How many people want a job but can't find one, expressed as a percentage. C) The number of people with part-time jobs. D) The number of people who are retired. Show Answer Correct Answer: B) How many people want a job but can't find one, expressed as a percentage. 6. Companies most likely have a well-defined supply function when the marketstructure is: A) Oligopoly. B) Perfect competition. C) Monopolistic competition. D) None of above. Show Answer Correct Answer: B) Perfect competition. 7. Equality between aggregate expenditure and aggregate output implies that thegovernment's fiscal deficit must equal: A) Private saving-Investment-Net exports. B) Private saving-Investment + Net exports. C) Investment-Private saving + Net exports. D) None of above. Show Answer Correct Answer: A) Private saving-Investment-Net exports. 8. When the number of sellers increases in an economy what increases? A) Supply. B) Competition. C) Production. D) All of the above. Show Answer Correct Answer: D) All of the above. 9. Which of the following is the most fundamental issue that economics address? A) Use of scarce resources. B) Reduction of budget deficits. C) Choice of appropriate technolofy. D) Promotion of privatization. Show Answer Correct Answer: A) Use of scarce resources. 10. Nonworking people who are capable of working but have given up looking for a job due to the state of the job market A) Underemployed Workers. B) Discouraged Workers. C) Labor Force. D) Market Basket. Show Answer Correct Answer: B) Discouraged Workers. 11. The number of people working 40 hours or more per week and still wanting additional work. A) Unempoyedment. B) Underemployment. C) Invisible underemployment. D) Visible underemployment. Show Answer Correct Answer: C) Invisible underemployment. 12. The ..... shows the relationship between the quantity of money demanded and the interest rate. A) Money Demand Curve. B) Money Supply Curve. C) Loanable Funds Market. D) Fisher Effect. Show Answer Correct Answer: A) Money Demand Curve. 13. When a neutral party works with two opposing parties to sort out their differences A) Mediation. B) Collective Bargaining. C) Outsourcing. D) Arbitration. Show Answer Correct Answer: A) Mediation. 14. Which of the following is not an approach to the calculation of GDP? A) Export Approach. B) Value-Added Approach. C) Expenditure Approach. D) Income Approach. Show Answer Correct Answer: A) Export Approach. 15. The real interest rate for a consumer loan is 5 percent, and the expected inflation rate is 2 percent. What is the nominal interest rate on the consumer loan? A) 2.5 percent. B) 3 percent. C) 5 percent. D) 7 percent. E) 10 percent . Show Answer Correct Answer: D) 7 percent. 16. To promote higher economic growth, the best way is to A) Decrease government spending and increase taxation. B) Decrease government spending and decrease taxation. C) Increase government spending and decrease taxation. D) Increase government spending and increase taxation. Show Answer Correct Answer: C) Increase government spending and decrease taxation. 17. If Government spending decreases, which of the following occurs? A) Real GDP increases and price level increases. B) Real GDP decreases and price level increases. C) Real GDP increases and price level decreases. D) Real GDP decreases and price level decreases. Show Answer Correct Answer: D) Real GDP decreases and price level decreases. 18. A government announces major cuts to individual and corporate taxes. What is the government likely seeking to achieve? A) To improve productive efficiency. B) To reduce the level of inflation. C) To promote full employment. D) To increase export activity. Show Answer Correct Answer: C) To promote full employment. 19. Which one of the following is NOT likely to be a result of deflation? A) Uncertainty will increase. B) People will be more likely to postpone major purchases. C) Wealth will be redistributed from creditors to debtors. D) Menu costs will increase. E) People on fixed pensions will see the value of their pensions increase. Show Answer Correct Answer: C) Wealth will be redistributed from creditors to debtors. 20. TRUE or FALSE:A "marginally attached worker" is someone who wants a job, has looked for work in the past year, but has not looked for work in the past four weeks. A) TRUE. B) FALSE. Show Answer Correct Answer: A) TRUE. ← 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