This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Macroeconomics – Quiz 226 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 226 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. A factory, including all the machines within it, that refines steel from raw iron would be an example of which of the following Factors of Production? A) Land. B) Labor. C) Capital. D) Entrepreneurship. Show Answer Correct Answer: C) Capital. 2. Slick Stan wants to bring a well known shoe shining company to Springfield. What type of business ownership would this be? A) Franchise. B) Non-profit. C) Partnership. D) Manufacturing. Show Answer Correct Answer: A) Franchise. 3. The period in the cycle from peak to trough A) Expansion. B) Recession. C) Business cycle. D) Hyperinflation. Show Answer Correct Answer: B) Recession. 4. The following statements are true EXCEPT A) Frictional unemployment occurs for a temporary period only. B) Structural unemployment occurs because of lack skills in labour. C) Seasonal unemployment exists because some labour quit their job and search for another job. D) Cyclical unemployment is a serious problem for any country and it exists because some labour has lost their jobs during a recession. Show Answer Correct Answer: C) Seasonal unemployment exists because some labour quit their job and search for another job. 5. One population trend that is impacting the budget process is A) A wave of new babies being born. B) A rising number of citizens in the 18-45 age range. C) The increased life expectancy of the Baby Boomers. D) Increasing number of early retirees under the age of 65. Show Answer Correct Answer: C) The increased life expectancy of the Baby Boomers. 6. Match this definition with the correct Mixed Economic System: "Property is collectively owned by the government or the society (rather than by private citizens), so that all have their basic needs met." A) Capitalism. B) Communism. C) Socialism. D) I give up. Show Answer Correct Answer: B) Communism. 7. The government raises taxes or decreases spending, what policy is being exercised? A) Expansionary Fiscal Policy. B) Contractionary Fiscal Policy. C) Expansionary Monetary Policy. D) Contractionary Monetary Policy. Show Answer Correct Answer: B) Contractionary Fiscal Policy. 8. Which of the following is not a component of domestic income? A) Operating Surplus. B) Compensation of employees. C) Net factor income from abroad. D) A. Mixed-income. Show Answer Correct Answer: C) Net factor income from abroad. 9. The Wall Street Reform and Consumer Protection Act of 2010, aka Dodd-Frank, is an example of: A) Fiscal Policy. B) Monetary Policy. C) Regulatory Policy. D) International Trade Policy. Show Answer Correct Answer: C) Regulatory Policy. 10. Which of the following sectors has the highest contribution in the GDP of India? A) Agriculture. B) Construction. C) Manufacturing. D) Financial Services & Professional Services. Show Answer Correct Answer: D) Financial Services & Professional Services. 11. Which is the type of business that does not require workers to join a union, but does require them to pay union dues to help pay for collective bargaining costs? A) Closed Shop. B) Agency Shop. C) Modified Union Shop. D) Union Shop. Show Answer Correct Answer: B) Agency Shop. 12. Why will government have to change taxes by a larger magnitude than they would change spending. A) Some spending leaks out of the economy through international trade. B) Some portions of tax cuts are saved and not spent. C) Government spending is too inefficient a process. D) Tax cuts are always superior to government spending. Show Answer Correct Answer: B) Some portions of tax cuts are saved and not spent. 13. Gross Domestic Product (GDP) ONLY refers to the total value of FINAL goods and services produced in a country in one year A) True. B) False. Show Answer Correct Answer: A) True. 14. In which part of the GDP calculation does this fit? You spend $ 15 at AMC to see the latest Avengers movie. A) Consumer spending. B) Government spending. C) Investment spending. D) Net exports. Show Answer Correct Answer: A) Consumer spending. 15. When measuring GDP we measure A) The value of all profits made by firms. B) The value of all taxes paid by people. C) The value of all output of final goods and services. D) The value of all salaries earned by people. Show Answer Correct Answer: C) The value of all output of final goods and services. 16. TRUE or FALSE:Gross investment in fixed assets can be positive, negative, or zero. A) TRUE. B) FALSE. Show Answer Correct Answer: B) FALSE. 17. A market that is closed to foreign companies; goods and services produced in other countries may not be offered for sale A) Blocked market. B) Open market. C) Closed market. D) Safe market. Show Answer Correct Answer: C) Closed market. 18. What is NOT a consequence of expansionary fiscal policy? A) AD shifts Right. B) Increased Price levels. C) Increased output. D) Increased unemployment. Show Answer Correct Answer: D) Increased unemployment. 19. The U.S. Government hired 10 Chinese-language experts, from a Chinese company based in Thailand, to train U.S. Workers ..... what will be effect in US economy? A) GDP decreases. B) GDP increases. C) GNP increases. D) No change. Show Answer Correct Answer: B) GDP increases. 20. Capital is a resource and investment is a flow. A) True. B) Lie. 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