This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Macroeconomics – Quiz 223 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 223 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. A monopoly's prices are determined by A) Competing firms. B) Market equilibrium. C) Perfect competition. D) The monopoly itself. Show Answer Correct Answer: D) The monopoly itself. 2. When a change in some economic factor ( other than price) causes a different quantity to be demanded by a company at every price A) Excess demand. B) Shift in supply. C) Shift in demand. D) Shortage. Show Answer Correct Answer: C) Shift in demand. 3. Given a stationary short run aggregate supply curve, a reduction in aggregate demand will tend to A) Decrease the level of equilibrium GDP and the overall price level. B) Increase the level of equilibrium GDP and the overall price level. C) Increase the level of equilibrium GDP but decrease the overall price level. D) Decrease the level of equilibrium GDP but increase the overall price level. Show Answer Correct Answer: A) Decrease the level of equilibrium GDP and the overall price level. 4. Price Stability is the interest in A) Maintaining low inflation. B) Locking prices on key goods through regulation. C) The market equilibrium point. D) Aggregate demand. Show Answer Correct Answer: A) Maintaining low inflation. 5. Wages are governed by what two primary forces: A) Government and Economy. B) Workers and Employers. C) Supply and Demand. D) Corona and Virus. Show Answer Correct Answer: C) Supply and Demand. 6. A consumer walks into a Walmart to purchase original Sun Chips. Unfortunately, the manager tells the consumer that they are out of stock and to come back another day to purchase the Sun Chips. This is an example of? A) Scarcity. B) Incentives. C) Needs. D) Shortage. E) None of the above. Show Answer Correct Answer: D) Shortage. 7. Which situation suits best for frictional unemployment? A) An employee resigns to find better job with higher pay and good environment. B) An employee is laid off due to economic structure changes in the country. C) An individual left its career to become full time homeless. D) An individual is given break during employment. Show Answer Correct Answer: A) An employee resigns to find better job with higher pay and good environment. 8. What is the alternative name for microecnomics? A) Income and Employment theory. B) Price theory. Show Answer Correct Answer: B) Price theory. 9. Difference between Real and Nominal GDP is A) Measured by excluding some of the sectors. B) That real GDP is always smaller than Nominal GDP. C) Change in price level from base year to current year. D) None of the above. Show Answer Correct Answer: C) Change in price level from base year to current year. 10. TRUE or FALSE:If the ECB decreased its target inflation rate, the AD curve would shift downward. A) TRUE. B) FALSE. Show Answer Correct Answer: A) TRUE. 11. The following is one way for Indonesia to get out of hyperinflation, namely..... A) Carrying out a revaluation of the Rupiah to further increase competitiveness and exports. B) Prepare a balanced APBD. C) Initiate large project development plans in the context of equitable distribution of infrastructure. D) Making changes to fiscal policy, the deficit is financed through foreign loans. Show Answer Correct Answer: D) Making changes to fiscal policy, the deficit is financed through foreign loans. 12. What is monetary policy and how does it affect the economy? A) Monetary policy refers to the actions taken by the government to control the money supply and interest rates in an economy. It affects the economy by influencing borrowing costs, investment levels, inflation, and overall economic growth. B) Monetary policy is the process of printing more money to stimulate economic growth. It affects the economy by increasing the money supply and causing inflation. C) Monetary policy is the government's plan to regulate the stock market and ensure stability. It affects the economy by controlling stock prices and investor confidence. D) Monetary policy refers to the actions taken by a central bank to control the money supply and interest rates in an economy. It affects the economy by influencing borrowing costs, investment levels, inflation, and overall economic growth. Show Answer Correct Answer: D) Monetary policy refers to the actions taken by a central bank to control the money supply and interest rates in an economy. It affects the economy by influencing borrowing costs, investment levels, inflation, and overall economic growth. 13. All of the following are part of the 4 factors of production EXCEPT A) Land. B) Labor. C) Food. D) Capital. E) Enterpreneurship. Show Answer Correct Answer: C) Food. 14. -???????-A large number of buyers and sellers.-Products must have the same quality.-No major barriers to entering market-A free exchange of price information Which heading best completes the above chart? A) Perfect competition. B) Monopoly. Show Answer Correct Answer: A) Perfect competition. 15. If the MPS is 0.60, MPC A) Is 1.60. B) Is 0.40. C) Is 0.30. D) Cannot be determined by the given information. Show Answer Correct Answer: B) Is 0.40. 16. Why do business cycles occur? A) Due to government regulations. B) Due to individual decision making. C) Due to technological progress. D) Due to changes in market demand. Show Answer Correct Answer: B) Due to individual decision making. 17. Which statement(s) is/are correct regarding revenue expenditure? A) They do not create assets. B) They create liability. C) They reduce liability. D) They create assets. Show Answer Correct Answer: A) They do not create assets. 18. The government is responsible for ..... policy. A) Fiscal. B) Monetary. Show Answer Correct Answer: A) Fiscal. 19. If policy makers are concerned about inflation, which fiscal and monetary policies would be MOST effective? A) Lowering taxes and buying bonds. B) Lowering taxes and raising the reserve requirement. C) Increasing taxes and lowering the discount rate. D) Increasing taxes and selling bonds. Show Answer Correct Answer: D) Increasing taxes and selling bonds. 20. Supposed typical worker in France can produce 32 units of product in an eight hour day, while a typical worker in Germany can produce 30 units of product in a 10 hour day. We can conclude that A) Work your productivity in Germany is higher than in France. B) The standard of living will likely be higher in France and in Germany productivity is four units per hour for the German worker and three units for the french worker. C) Productivity is four units per hour for the German worker in three units per hour for the french worker. D) There will be no difference between a standard of living in France and Germany. E) The standard of living will likely be higher in Germany than in France. Show Answer Correct Answer: B) The standard of living will likely be higher in France and in Germany productivity is four units per hour for the German worker and three units for the french worker. ← 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