This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Macroeconomics – Quiz 221 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 221 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. National debt is different than deficits in that A) Deficits only apply to monetary decisions made by Congress . B) Deficits include all debts owed over time with interest. C) National debt is the sum of all past deficits plus interest. D) The debt only includes money owed for the current fiscal year. Show Answer Correct Answer: C) National debt is the sum of all past deficits plus interest. 2. Which of these is NOT a principal factor that shifts the demand curve? A) Changes in income. B) Changes in inventory. C) Changes in tastes. D) Changes in number of customers. Show Answer Correct Answer: B) Changes in inventory. 3. All, or everything A) Aggregate. B) GDP. C) Inflation Rate. D) Unemployment Rate. E) GDP Annual Growth Rate. Show Answer Correct Answer: A) Aggregate. 4. All other things being equal, if an economy operating at the full employment level of output achieves a more efficient allocation of resources, the most likely outcome is that national income per head A) Will rise in real terms. B) Remains constant because of full employment. C) Will fall in real terms because of demand-pull inflation. D) Will be redistributed more equitably. Show Answer Correct Answer: A) Will rise in real terms. 5. The idea that individuals and businesses meet society's needs when they seek their own self-interest is an example of: A) The Invisible Hand. B) The Invisible Foot. C) The Invisible Man. D) None of above. Show Answer Correct Answer: A) The Invisible Hand. 6. The ..... is the interest rate that banks charge other banks for loans, as determined in the federal funds market. A) Federal Funds Rate. B) Interest Rate. C) Loanable Rate. D) Federal Rate. Show Answer Correct Answer: A) Federal Funds Rate. 7. An excess in the demand for labor A) Employment. B) Unemployment. C) Frictional. D) Structura. Show Answer Correct Answer: B) Unemployment. 8. How could the government increase employment with monetary policy? A) The government could increase the discount rate. B) The government could decrease government spending. C) The government could decrease the discount rate. D) The government could increase government spending. Show Answer Correct Answer: C) The government could decrease the discount rate. 9. Which does NOT describe a role of the Federal Reserve? A) Provide special financial services to banks. B) To regulate & watch US banks. C) Keep the economy stable & healthy through Monetary Policy. D) Decide whether or not to raise or lower US taxes. Show Answer Correct Answer: D) Decide whether or not to raise or lower US taxes. 10. Deflation occurs because AG < AS and sellers are forced to lower prices A) True. B) False. Show Answer Correct Answer: A) True. 11. When individuals are unemployed due to a change in season, e.g. Santa Claus after christmas. A) Seasonal Unemployment. B) Frictional Unemployment. C) Structural Unemployment. D) Cyclical Unemployment. Show Answer Correct Answer: A) Seasonal Unemployment. 12. Refusing to buy something to get your demands is called what? A) Boycotting. B) Collective Bargaining. C) Picketing. D) Going on strike. Show Answer Correct Answer: A) Boycotting. 13. The Phillips curve shows what type of relationship between inflation and unemployment? A) Negative. B) Positive. C) Parabolic. D) Symmetric. Show Answer Correct Answer: A) Negative. 14. The main policy goal of unemployment insurance is to reduce the ..... A) Role of unions in wage setting. B) Amount of frictional unemployment. C) Income uncertainty that workers face. D) Search effort of the unemployed. Show Answer Correct Answer: C) Income uncertainty that workers face. 15. Which of the following factors would NOT lead to an increase in saving? A) A rise in interest rates. B) An increase in the tax free allowance applying to interest paid on saving. C) An increase in the rate of inflation. D) Government proposals to introduce a new ISA (tax free saving account) for under 40s. Show Answer Correct Answer: C) An increase in the rate of inflation. 16. Which of the following terms refers to goods and services brought into the US from other countries to sell to American consumers? A) Exports. B) Imports. C) GDP. D) Factors of Production. Show Answer Correct Answer: B) Imports. 17. The part of the business cycle where unemployment starts to rise is: A) Recession. B) Recovery. C) Boom. D) Peak. Show Answer Correct Answer: A) Recession. 18. Refers to the price at which sellers accept orders for spot or earliest delivery usually in small quantities. A) Retail price index. B) Retail price. C) Wholesale price. D) Wholesale price index. Show Answer Correct Answer: B) Retail price. 19. If earlier 1$ = Rs 60 and now 1$ = Rs 55, then A) Imports will rise. B) Imports will fall. C) Exports will fall. D) Both (a) and (c). Show Answer Correct Answer: D) Both (a) and (c). 20. The aggregate supply curve ..... A) Is perfectly inelastic. B) Is positively sloped upward. C) Slopes up because the higher price level will increase domestic output. D) Slopes down because production costs decrease as output. Show Answer Correct Answer: B) Is positively sloped upward. ← 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