This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Macroeconomics – Quiz 227 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 227 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Suppose a significant hurricane damages a coastal region with a large oil refining industry. What would be the most likely effect of this damage in the AD/AS model? A) The AD curve would shift to the right. B) The AD curve would shift to the left. C) The AS curve would shift to the right. D) The AS curve would shift to the left. E) Both the AD and AS curves would shift. Show Answer Correct Answer: D) The AS curve would shift to the left. 2. The export tea is the microeconomics A) True. B) False. Show Answer Correct Answer: B) False. 3. If aggregate real output is growing faster than the total population, then: A) Real GDP per capita is rising. B) The standard of living is declining. C) The national income is falling. D) Nominal GDP per capita is falling. E) The national income per capita is falling. Show Answer Correct Answer: A) Real GDP per capita is rising. 4. If 1 Dollar = RM 4.20 change to 1 Dollar = RM 3.50 in floating exchange market, what is the suitable term for this situation to the exchange rate? A) Depreciation. B) Overvalued. C) Appreciation. D) None of above. Show Answer Correct Answer: C) Appreciation. 5. Which of the following could explain the (immediate) shift shown in the graph below? A) A decrease in government spending. B) An increase in investor confidence. C) A fall in the ECB's target inflation rate. D) A beneficial supply shock. E) A fall in people's expectations of inflation. Show Answer Correct Answer: E) A fall in people's expectations of inflation. 6. If George keeps a part of his earnings as cash in the safety deposit box, then he is employing money as A) A store of value. B) A measure of value. C) A medium of exchange. D) None of the above. Show Answer Correct Answer: A) A store of value. 7. Total quantity of final goods and services producers in an economy are willing and able to supply at each price level A) Aggregate demand. B) Aggregate supply. Show Answer Correct Answer: B) Aggregate supply. 8. People use money to buy things and pay debts because they have agreed upon the money's worth. This function of money is called what? A) Medium of exchange. B) Unit of account. C) Store of value. D) Standard of value. Show Answer Correct Answer: D) Standard of value. 9. ..... guarantees that a bank's depositors will be paid even if the bank can't come up with the funds, up to a maximum amount per account. A) Deposit Insurance. B) Discount Window. C) Bank Run. D) Bank Reserves. Show Answer Correct Answer: A) Deposit Insurance. 10. The current rate of unemployment in Hamiltonia is 7%. Economists estimate that frictional unemployment is 4% and structural unemployment is 1%.Which of the following best describes the amount of cyclical unemployment in Hamiltonia and current output in the economy? A) Cyclical unemployment is 2%; output is more than full employment output. B) Cyclical unemployment is 0%; output is less than full employment output. C) Cyclical unemployment is 2%; output is less than full employment output. D) Cyclical unemployment is 0%; output is equal to full employment output. E) Cyclical unemployment is 7%; output is equal to full employment output. Show Answer Correct Answer: C) Cyclical unemployment is 2%; output is less than full employment output. 11. Real GDP is a measure of a country's A) Wealth. B) Money. C) Economic transactions. D) Physical output. Show Answer Correct Answer: D) Physical output. 12. If potential output is equal to actual aggregate output, which of the following is true? A) The economy is experiencing inflation. B) The economy is experiencing cyclical unemployment. C) The economy is in long-run equilibrium. D) Interest rates are increasing. Show Answer Correct Answer: C) The economy is in long-run equilibrium. 13. What are the key differences between microeconomics and macroeconomics? A) The key differences between microeconomics and macroeconomics are the methodologies used and the scope of study. B) The key differences between microeconomics and macroeconomics are the time frame analyzed and the level of detail. C) The key differences between microeconomics and macroeconomics are the focus on individual behavior and the impact on the overall economy. D) The key differences between microeconomics and macroeconomics are the level of analysis and the variables studied. Show Answer Correct Answer: D) The key differences between microeconomics and macroeconomics are the level of analysis and the variables studied. 14. Which of the following is correct concerning opportunity cost A) Except for the extent that you pay more for them, opportunity, should not include the cost of things you would have purchased anyway. B) To compute opportunity cost you should subtract marginal benefit from marginal costs. C) Opportunity cost in the idea of a trade-off are not closely related. D) Rational people should compare various options without consider an opportunity costs. E) To compute opportunity costs you should subtract total benefits from total costs. Show Answer Correct Answer: A) Except for the extent that you pay more for them, opportunity, should not include the cost of things you would have purchased anyway. 15. Unemployment caused by the changes in the skills needed by employers A) Frictional. B) Cyclical. C) Seasonal. D) Structural. Show Answer Correct Answer: D) Structural. 16. Which of the following is the formula to calculate GNP, based on the expenditure approach? A) GNP = C + I + G + (X + M). B) GNP = C + I + G-(M-X). C) GNP = C + I + G + X + M. D) GNP = C + I + G + M-X. Show Answer Correct Answer: B) GNP = C + I + G-(M-X). 17. Which of the following is NOT true of the Federal Reserve? A) It serves as a lender of last resort for member banks. B) It supervises member banks. C) It provides check-clearing services. D) It issues debit cards. E) It controls the money supply. Show Answer Correct Answer: D) It issues debit cards. 18. GDP per capita is found by dividing a country's GDP by it's A) Population. B) Average birth rates. C) Number of households. D) None of above. Show Answer Correct Answer: A) Population. 19. Which one of the following is characteristic of tariffs? A) They prevent the importation of goods from abroad. B) They specify the maximum amounts of specific commodities that may be imported during a given period of time. C) They offer protect domestic producers from foreign competition. D) They enable nations to reduce their exports and increase their imports during periods of recession. Show Answer Correct Answer: C) They offer protect domestic producers from foreign competition. 20. The money stock includes all of the following except ..... A) Paper currency. B) Metal coins. C) Lines of credit accessible with credit cards. D) Bank balances accessible with debit cards. Show Answer Correct Answer: C) Lines of credit accessible with credit cards. ← 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