This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Macroeconomics – Quiz 230 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 230 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Microeconomics can be defined as ..... A) The part of economics concerned with large-scale or general economic factors, such as interest rates and national productivity. B) The study of what is likely to happen (tendencies) when individuals make choices in response to changes in incentives, prices, resources, and/or methods of production. Show Answer Correct Answer: B) The study of what is likely to happen (tendencies) when individuals make choices in response to changes in incentives, prices, resources, and/or methods of production. 2. Expansionary policies are designed to control ..... A) Inflation. B) Deflation. C) Inflation and deflation. D) All of these. Show Answer Correct Answer: B) Deflation. 3. In October, Bill is laid off from his job as a Halloween costume make solely because of a slow Halloween season. Which statement is true? A) Bill is cyclically unemployed. B) Bill is frictionally unemployed. C) Bill is structurally unemployed. D) Bill is seasonally unemployed. Show Answer Correct Answer: A) Bill is cyclically unemployed. 4. If an economy is to control recession like most of the Euro-zone nations, which of the following is appropriate A) (a) Reducing repo rate. B) (b) Reducing CRR. C) Both (a) and (b). D) None (a) and (b). Show Answer Correct Answer: C) Both (a) and (b). 5. If the federal government has a budget surplus and enacts contractionary fiscal policy, then A) The demand for loans shifts to the left. B) The demand for loans shifts to the right. C) The supply of loanable funds shifts to the right. D) The supply of loanable funds shifts to the left. Show Answer Correct Answer: C) The supply of loanable funds shifts to the right. 6. If operators are fired and replaced with computer technology, the operators would be considered A) Frictionally unemployed. B) Structurally unemployed. C) Cyclically unemployed. D) Dissatisfiededly unemployed dissatisfiededly unemployed. Show Answer Correct Answer: B) Structurally unemployed. 7. If the economy is in a recession, which policy would Congress want to enact to fix the problem? A) Expansionary monetary policy. B) Contractionary monetary policy. C) Expansionary fiscal policy. D) Contractionary fiscal policy. Show Answer Correct Answer: C) Expansionary fiscal policy. 8. Currency deposit ratio (cr)= A) C/D. B) D/C. C) R/D. D) D/R. Show Answer Correct Answer: A) C/D. 9. Which of the following taxes is MOST regressive? A) The federal income tax. B) The corporate income tax. C) A luxury tax. D) A sales tax on food. Show Answer Correct Answer: D) A sales tax on food. 10. Debt has a certain self-reinforcing quality to it. There is one category of government spending that automatically increases along with the federal debt. What is it? A) Military spending. B) Interest payments on the debt. C) Foreign aid. D) Social security benefits . Show Answer Correct Answer: B) Interest payments on the debt. 11. Which of the following is NOT a goal of unions? A) Better wages/pay. B) Shorter shifts/working hours. C) More control for workers in the company/business. D) Job security. Show Answer Correct Answer: C) More control for workers in the company/business. 12. Which of the following is not true about the Federal Reserve? A) It was established by the U.S. constitution. B) It lends to banks. C) It can own government bonds. D) It regulates the banking system. Show Answer Correct Answer: A) It was established by the U.S. constitution. 13. Taxation for which the tax rate progresses from low to high so that the taxpayer's average tax rate is less than their marginal tax rate (even though both are rising). These take a larger proportion of richer households' income. A) Flat rate / proportional tax. B) Progressive taxation. C) Regressive taxation. D) Direct taxation. Show Answer Correct Answer: B) Progressive taxation. 14. Where buyers and sellers learn information from one another and voluntarily exchange goods, services, & money A) Market. B) Partnership. C) Specialization. D) Command Economy. Show Answer Correct Answer: A) Market. 15. Helpsprovide retirement income for the elderly and pays disability benefits A) Medicare. B) Social security. C) State income tax. D) Federal income tax. Show Answer Correct Answer: B) Social security. 16. Which of the following is a component of Net Exports? A) Imports. B) Savings. C) Investments. D) Taxes. Show Answer Correct Answer: A) Imports. 17. Over a three year period, the United States experienced an increase in the real GDP, low inflation, and a declining unemployment rate. For this period, the United States A) Was in an economic trough. B) Was in a stagnant economic period. C) Appeared to be entering a recession. D) Was in the middle of an economic boom. Show Answer Correct Answer: D) Was in the middle of an economic boom. 18. Who is harmed from unanticipated inflation? A) Borrowers. B) Savers. C) Retirees. D) College Students. Show Answer Correct Answer: B) Savers. 19. A ..... measures the cost of purchasing a given market basket in a given year. A) Price Index. B) Market Basket. C) Aggregate Price Level. D) Inflation Rate. Show Answer Correct Answer: A) Price Index. 20. Which is not part of the Legal Institutional Environment as it applies to our AS determinants? A) Taxes. B) Subsidies. C) Regulations. D) Government spending. Show Answer Correct Answer: D) Government spending. ← 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