This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Macroeconomics – Quiz 224 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 224 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. People who are 16 or older who are employed or actively looking for and available to do work. A) Civilian Labor Force. B) Outsourcing. C) Telecommuting. D) Independent Contractor. Show Answer Correct Answer: A) Civilian Labor Force. 2. An increase in which of the following would cause an outward shift of the PPC for consumer goods and capital goods? A) An increase in the demand for consumer goods. B) An increase in taxes on consumers. C) A decrease in unemployment. D) An increase in the resources to produce capital goods. E) The efficient production of consumer goods. Show Answer Correct Answer: D) An increase in the resources to produce capital goods. 3. An ..... is a limit on the quantity of a good that can be imported within a given period. A) Import Quota. B) Tariffs. C) Protectionism. D) Foreign Exchange Controls. Show Answer Correct Answer: A) Import Quota. 4. This addresses the demand of the consumers. A) Supply. B) Scarcity. C) Production. D) Finance. Show Answer Correct Answer: A) Supply. 5. Which of the following is NOT a component of the M1 money supply in the euro area? A) Checking account deposits. B) Currency in circulation. C) Money market account deposits. D) Travelers checks. E) All of these are components of the M1 money supply. Show Answer Correct Answer: D) Travelers checks. 6. How might reducing taxes on middle-and lower-income citizens help stimulate the economy? A) It will lower the cost to make goods and provide services, enabling businesses to hire more workers. B) It will give people more money to spend, increasing the overall demand for goods and services. Show Answer Correct Answer: B) It will give people more money to spend, increasing the overall demand for goods and services. 7. Macroeconomics distinguishes between the real economy and the A) Monetary economy. B) Virtual economy. C) Normative economy. D) Underground economy. Show Answer Correct Answer: A) Monetary economy. 8. In the circular flow diagram, households earn revenue via the..... market and spend via the..... market. ..... A) Products; resource [item; expense factor]. B) Resources; product [expenditure factor; goods]. C) Capital; consumer [capital; user]. D) Consumer; capital [user; capital]. Show Answer Correct Answer: B) Resources; product [expenditure factor; goods]. 9. This type of fiscal policy is the result of deliberate actions by policy makers rather than rules. A) Discretionary. B) Expansionary. C) Contractionary. D) None of above. Show Answer Correct Answer: A) Discretionary. 10. According to the Reserve Bank of India, what is the tolerance limit for inflation in India based on Consumer Price Index? A) 0% to 4%. B) 2% to 6%. C) 1% to 5%. D) 3% to 5%. Show Answer Correct Answer: B) 2% to 6%. 11. What are the three types of unemployment? A) Frictional, structural, and cyclical. B) Seasonal, technological, and discouraged. C) Involuntary, voluntary, and underemployment. D) Demand-pull, cost-push, and stagflation. Show Answer Correct Answer: A) Frictional, structural, and cyclical. 12. The quantity of goods and services that can be purchased with a given amount of money; the value of money. A) Nominal interest rate. B) Menu cost. C) Power. D) Purchasing power. Show Answer Correct Answer: D) Purchasing power. 13. Which combination of fiscal policies would be the most contractionary? A) An increase in government spending and taxes. B) A decrease in government spending and taxes. C) An increase in government spending and a decrease in taxes. D) A decrease in government spending and an increase in taxes. Show Answer Correct Answer: D) A decrease in government spending and an increase in taxes. 14. The use of taxes and government spending to affect the economy A) Monetary Policy. B) Fiscal Policy. C) Contractionary Policy. D) Expansionary Policy. Show Answer Correct Answer: B) Fiscal Policy. 15. One of the various statistical measures that show the relative stability of an economic system A) GDP. B) Income Taxes. C) Indicators. D) Supply. Show Answer Correct Answer: C) Indicators. 16. Deflation in the domestic economy is most likely to A) Cause consumers to delay their purchases of consumer durables. B) Lead to a rise in interest rates for both borrowers and lenders. C) Lead to a rise in both exports and imports. D) Reduce the real value of any money that has been lent. Show Answer Correct Answer: A) Cause consumers to delay their purchases of consumer durables. 17. A government lowers the rate of interest. Who is most likely to be disadvantaged by this policy? A) House buyers. B) Manufacturers. C) Retailers. D) Savers. Show Answer Correct Answer: D) Savers. 18. The money demand function (M/P)D = 1000-100r. With M = 1000 and P = 2, the real money supply (M/P)S =500. For the Fed to raise the interest rate from 5 percent to 7 percent, the new nominal money supply is A) M=1000. B) M=600. C) M=700. D) M=200. Show Answer Correct Answer: B) M=600. 19. A bank receives a deposit of $ 100, 000. If the reserve requirement ratio is 10%, what is the maximum possible expansion of the money supply? A) $ 10, 000. B) $ 90, 000. C) $ 100, 000. D) $ 900, 000. Show Answer Correct Answer: D) $ 900, 000. 20. Which tool of monetary policy matches this definition:The Federal Reserve began paying interest on bank reserves. If the Fed either raises or lowers interest rates, banks will be compelled to either hold excess reserves or lend them to customers. A) Reserve Requirement. B) Interest on Required and Excess Reserves. C) Discount Rate. D) Open Market Operations. Show Answer Correct Answer: B) Interest on Required and Excess Reserves. ← 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