This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Macroeconomics – Quiz 232 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 232 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The three functions of money are ....., store of value and standard of value A) Level of exchange. B) Medium of exchange. C) Quality of value. D) Caliber of wealth. Show Answer Correct Answer: B) Medium of exchange. 2. The gross national product (GNP) equals ..... A) NNP-depreciation. B) GDP-inflation. C) GDP + net national income from abroad. D) GDP-net national income from aborad. Show Answer Correct Answer: C) GDP + net national income from abroad. 3. The ..... is an estimate of what the budget balance would be if real GDP were exactly equal to potential output. A) Cyclically Adjusted Budget Balance. B) Fiscal Year. C) Government Debt. D) Debt-GDP Ratio. Show Answer Correct Answer: A) Cyclically Adjusted Budget Balance. 4. Government purchases or sales of currency in the foreign exchange market constitute ..... A) Exchange Market Intervention. B) Foreign Exchange Reserves. C) Foreign Exchange Controls. D) Exchange Rate Regime. Show Answer Correct Answer: A) Exchange Market Intervention. 5. How do tight and loose monetary policy affect interest rates? A) Tight monetary policy tends to increase interest rates, while loose monetary policy tends to decrease interest rates. B) Tight monetary policy tends to decrease interest rates. C) Loose monetary policy tends to increase interest rates. D) Tight monetary policy has no effect on interest rates. Show Answer Correct Answer: A) Tight monetary policy tends to increase interest rates, while loose monetary policy tends to decrease interest rates. 6. Stagflation occurs when the economy experiences A) Rising prices and rising output. B) Rising prices and falling output. C) Falling prices and falling output. D) Falling prices and rising output. Show Answer Correct Answer: B) Rising prices and falling output. 7. A reduction in the required reserve ratio will cause A) An increase in the demand for money. B) Decrease in the discount rate. C) Decrease i the money supply. D) An increase in excess reserves. Show Answer Correct Answer: D) An increase in excess reserves. 8. Serves as a measure of the changes in and to trace the movement of the average prices of company shares of stocks traded in Manila Stock Exchange. A) Stock price index. B) Index number. C) Wholesale price index. D) Retail price index. Show Answer Correct Answer: A) Stock price index. 9. Consumer Spending is a measurement tool of GDP? A) True. B) False. Show Answer Correct Answer: A) True. 10. The Policy That Regulates Taxes Called? A) Monetary Policy. B) Taxes Policy. C) Interest Rates Policy. D) Fiscal Policy. Show Answer Correct Answer: D) Fiscal Policy. 11. If known; consumption IDR 27.5 T, private investment or expenditure IDR 39 T, government expenditure IDR 13.5 T, export IDR 9 T, import IDR 6.5 T. From this data, calculate national income using the expenditure approach! A) 81.5 T. B) 82.5 T. C) 83.5 T. D) 84.5 T. E) All wrong. Show Answer Correct Answer: B) 82.5 T. 12. The sale of a Mercedes-Benz from Germany to France would be recorded as a merchandise export in the ..... account of Germany's balance of payments. A) Capital. B) Current. C) Official reserves. D) Export. Show Answer Correct Answer: B) Current. 13. Tax on IMPORTED goods A) Tax incentive. B) Estate tax. C) Sales tax. D) Tariff. Show Answer Correct Answer: D) Tariff. 14. Which of the following would occur if the international value of the United States dollar decreased? A) United States exports would increase. B) More gold would flow into the United States. C) United States demand for foreign currencies would increase. D) The United States trade deficit would increase. E) United States citizens would pay less for foreign goods. Show Answer Correct Answer: A) United States exports would increase. 15. How does a budget deficit relate to the national debt? A) They are the same thing. B) Budget deficits are more than the national debt. C) Budget deficits reduce the size of the national debt. D) Budget deficits add to/ create the national debt. Show Answer Correct Answer: D) Budget deficits add to/ create the national debt. 16. Which result occurs when government expenditures are greater than the government's total revenue? A) Reduced net exports. B) Increased excise taxes. C) A federal budget surplus. D) A federal budget deficit. Show Answer Correct Answer: D) A federal budget deficit. 17. Identify which items below does not belong to the group. A) Labor sold by household=Resource Market. B) Labor sold by household=Product market. C) Computers sold by businesses=Product market. D) Computers bought by households=product market. Show Answer Correct Answer: B) Labor sold by household=Product market. 18. Which type of tax is the Personal Income Tax? A) Regressive. B) Progressive. C) Proportional. D) Allotment Tax. Show Answer Correct Answer: B) Progressive. 19. Which one of the following is not a limitation of demand-side policies? A) There are time lags. B) There is a reduction in economic efficiency. C) They limit the incentive function of taxation. D) There is a trade off between macroeconomic objectives. Show Answer Correct Answer: C) They limit the incentive function of taxation. 20. The amount of a product demanded by consumers is greater than the supply. A) Scarcity. B) Market price. C) Law of Supply. D) Law of Demand. Show Answer Correct Answer: A) Scarcity. ← 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