This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Macroeconomics – Quiz 231 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 231 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Complements vs. Substitutes A) Complements = goods that you purchase together.Example:peanut butter & jellyMilk & Cereal, Chips & SalsaSubstitutes = goods that you instead of each otherExamples:Coke & Pepsi, Gatorade & PowerAde. B) Resources are of equal quality and equally suited for the production of both commoditiesdemandthe quantity of a good or. C) The quantity of a good or service that consumers are willing and able to buy. D) Goods that are produced as by-products from producing another good. Show Answer Correct Answer: A) Complements = goods that you purchase together.Example:peanut butter & jellyMilk & Cereal, Chips & SalsaSubstitutes = goods that you instead of each otherExamples:Coke & Pepsi, Gatorade & PowerAde. 2. Which is a continuation of a normal business cycle: A) Recession, contraction, expansion, boom. B) Boom, contraction, expansion, recession. C) Expansion, contraction, recession, boom. D) Contraction, recession, expansion, boom. Show Answer Correct Answer: D) Contraction, recession, expansion, boom. 3. Investment That changes with the change in income is called A) Autonomous Investment. B) Induced Investment. C) Net Investment. D) Gross Investment. Show Answer Correct Answer: B) Induced Investment. 4. With inflation, AD > AS A) True. B) False. Show Answer Correct Answer: A) True. 5. The market where factors of production are sold. A) FACTOR MARKET. B) PRODUCTION MARKET. C) FACTOR SERVICES. D) None of above. Show Answer Correct Answer: A) FACTOR MARKET. 6. The practice of foreign companies establishing operations in, and therefore bringing jobs to, the United States. A) Outsourcing. B) Insourcing. C) Wages. D) Human Capital. Show Answer Correct Answer: B) Insourcing. 7. The aggregate supply curve shows the relationship between A) The level of inputs and aggregate output. B) The price level and the level of inputs. C) The wage rate and the level of employment. D) The price level and the level of aggregate output supplied. Show Answer Correct Answer: D) The price level and the level of aggregate output supplied. 8. What is the total value of all final goods and services produced in the economy calculated using the prices of a selected base year? A) Nominal GDP. B) Real GDP per capita. C) Real GDP. D) GDP per capita. Show Answer Correct Answer: C) Real GDP. 9. Inflation is at an all time high and consumer spending is at its highest. Which phase of the business cycle is this? A) Recession. B) Expansion. C) Peak. D) Contraction. Show Answer Correct Answer: C) Peak. 10. Social security and Medicare are financed by A) Personal income taxes. B) Payroll taxes. C) Excise taxes. D) Corporation income taxes. E) None of the above. Show Answer Correct Answer: B) Payroll taxes. 11. The average amount earned by each person in a country. It is calculated by dividing a country's Gross National Product by its total population. A) Value added. B) Personal Income. C) Per Capita Income. D) Disposable income. Show Answer Correct Answer: C) Per Capita Income. 12. If the central bank increases the discount rate, what is likely to happen to interest rates in the broader economy? A) Interest rates increase. B) Interest rates remain the same. C) Interest rates decrease. D) It depends on other factors. Show Answer Correct Answer: A) Interest rates increase. 13. What section of the Keynesian aggregate supply curve is explained by inflexible wages? A) Section I. B) Section II. C) Section III. D) Section IV. Show Answer Correct Answer: A) Section I. 14. Savings are leakages from the Circular Flow. A) True. B) False. Show Answer Correct Answer: A) True. 15. If wages were automatically adjusted for changes in the price level, the short-runaggregate supply curve would most likely be: A) Flatter. B) Steeper. C) Unchanged. D) None of above. Show Answer Correct Answer: B) Steeper. 16. Characteristics include owned by two or more people and may be general or limited A) Sole Propriotorship. B) Partnership. C) Corporation. D) None of above. Show Answer Correct Answer: B) Partnership. 17. In an economy, the price index in 2006 was 100 and the real gross domestic product (GDP) was $ 1, 000. In2010, the price index was 110 and the nominal GDP was $ 2, 200. Based on that information, which of the followingcan be inferred about the economy's nominal GDP and real GDP in 2010? A) Nominal GDP in 2006 = $ 2000; Real GDP in 2010 = $ 1, 000. B) Nominal GDP in 2006 = $ 1000; Real GDP in 2010 = $ 2000. C) Nominal GDP in 2006 = $ 1100; Real GDP in 2010 = $ 2420. D) Nominal GDP in 2006 = $ 1000; Real GDP in 2010 = $ 2420. E) Nominal GDP in 2006 = $ 1100; Real GDP in 2010 = $ 2200. Show Answer Correct Answer: B) Nominal GDP in 2006 = $ 1000; Real GDP in 2010 = $ 2000. 18. Which of the following might cause supply to increase on a Micro graph? A) Government subsidizing tomato production. B) Firms providing electricity and power going out of business. C) An increase in government taxation on textbook producers. D) A natural disaster destroying farmers ability to harvest their crops. Show Answer Correct Answer: A) Government subsidizing tomato production. 19. Investment expenditure is one of the factors affecting ..... A) AD CURVE. B) AS CURVE. Show Answer Correct Answer: A) AD CURVE. 20. An economic system in which prices and wages are determined by competition between businesses, without government regulation A) Free market. B) The best market. C) USA USA. D) Command market. Show Answer Correct Answer: A) Free market. ← 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