This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Macroeconomics – Quiz 22 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 22 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What is money if it is available but only in a limited supply? A) Portable. B) Durable. C) Divisible. D) Scarce. Show Answer Correct Answer: D) Scarce. 2. Philips curve establishes relationship between A) Price and demand. B) Wage and money supply. C) Inflation and unemployment. D) Inflation and deflation. Show Answer Correct Answer: C) Inflation and unemployment. 3. Defined as " how limited resources are allocated to satisfy competing and unlimited wants " A) Market Economy. B) Economics. C) Macroeconomics. D) Microeconomics. Show Answer Correct Answer: B) Economics. 4. If the consumption function is C = 1, 000 +.8Y and Y is 20, 000, then the average propensity to consume is A) 0.8. B) 0.85. C) 0.75. D) 0.70. Show Answer Correct Answer: B) 0.85. 5. Private, open economy is represented by which of the following relationships A) C + I + G + NX. B) C + I. C) C + I + G. D) C + I + NX. Show Answer Correct Answer: D) C + I + NX. 6. The following are the costs of expected inflation (Cost of Expected Inflation), Except..... A) Shoe Leather Cost. B) Menu Cost. C) Tax Cost. D) Surge Cost. Show Answer Correct Answer: D) Surge Cost. 7. Which of the following is most appropriate about GDP as a measure of welfare? A) GDP is the single best measure of welfare. B) GDP is not used to measure welfare. C) GDP have some limitations as a measure of welfare. D) GDP is not at all a measure of welfare. Show Answer Correct Answer: C) GDP have some limitations as a measure of welfare. 8. A reduction in consumer confidence will likely have which of the following effects? A) A rightward shift in the IS curve. B) A leftward shift in the IS curve. C) An upward shift in the LM curve. D) A downward shift in the LM curve. Show Answer Correct Answer: B) A leftward shift in the IS curve. 9. Economic growth most unambiguously occurs when there are increases in ..... A) Potential real GDP. B) Aggregate demand. C) Federal budget surpluses. D) The population of a country. Show Answer Correct Answer: A) Potential real GDP. 10. The limited nature of society's resources A) Scarcity. B) Economics. C) Efficiency. D) None of above. Show Answer Correct Answer: A) Scarcity. 11. What is an action of monetary policy? A) Reduce taxes. B) Changing reserve requirements. C) Increase spending. D) Borrow money for deficit. Show Answer Correct Answer: B) Changing reserve requirements. 12. What is a government budget surplus? A) When the amount of income received by the government exceeds the amount of expenses paid by the government. B) When the amount of expenses paid by the government exceeds the amount of income received by the government. C) When the government has no income or expenses. D) When the government has equal income and expenses. Show Answer Correct Answer: A) When the amount of income received by the government exceeds the amount of expenses paid by the government. 13. According to the interest rate effect, aggregate demand slopes downward (negatively) because A) Lower prices increase money holdings, decrease lending, interest rates rise, and investment spending falls. B) Lower prices increase the value of money holdings and consumer spending increases. C) Lower prices decrease the value of money holdings and consumer spending decreases. D) Lower prices reduce money holdings, increase lending, interest rates fall, and investment spending increases. Show Answer Correct Answer: D) Lower prices reduce money holdings, increase lending, interest rates fall, and investment spending increases. 14. Russia exports wheat. In 2010, a bad harvest led the Russian government to prevent the export of wheat, to ensure enough supplies were kept for domestic use. What was the most likely outcome of the government's action? A) Prices were fixed by the wheat producers. B) The amount produced was determined by the government. C) The price of wheat abroad fell. D) There was a redistribution of domestic production. Show Answer Correct Answer: D) There was a redistribution of domestic production. 15. Takes a larger share of one's income as the amount of income grows is A) Proportional Taxes. B) Progressive Taxes. C) Tax Evasion. D) Tax. Show Answer Correct Answer: B) Progressive Taxes. 16. A Japanese car company makes a new sedan in Kentucky. Which country's GDP is this added to? A) U.S. B) Japan. C) U.S. and Japan. D) China. E) No answer. Show Answer Correct Answer: A) U.S. 17. If 20-30 percent of new college graduates in the US spend their first few years after graduation underemployed, then which of the following would be TRUE? A) The US PP curve would shift to the right. B) The current production point of the US would move closer to its PP curve. C) The US PP curve would shift to the left. D) The current production point of the US would move further away from its PP curve. Show Answer Correct Answer: D) The current production point of the US would move further away from its PP curve. 18. Which of the following are injections into the circular flow of income? A) Household spending, wages and rent. B) Government spending, investment and imports. C) Savings, capital and exports. D) Investment, government spending and exports. Show Answer Correct Answer: D) Investment, government spending and exports. 19. Unemployed because they are graduating from high school or college, looking for better working conditions, or seeking a higher wage. A) Cyclical. B) Frictional. C) Structural. D) Seasonal. Show Answer Correct Answer: B) Frictional. 20. It is show as macroeconomics, except ..... A) Income. B) Inflation. C) Unemployment. D) Economic growth. Show Answer Correct Answer: A) Income. ← 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