This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Macroeconomics – Quiz 233 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 233 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Assuming all other things equal, if a society produces just enough capital goods this year to replace the portion of its existing capital stock that wore out during the year, its PP curve will A) Shift to the right. B) Disappear entirely. C) Shift to the left. D) Not move from its present location. Show Answer Correct Answer: D) Not move from its present location. 2. As a ..... central bank provides financial assistance to commercial banks in case of financial emergency. A) Bank of note issue. B) Lender of last resort. C) Clearing house. D) Controller of credit. Show Answer Correct Answer: B) Lender of last resort. 3. Which of the following would be MOST impacted by an increase in a progressive income tax? A) Sally who makes $ 50, 000/year managing a restaurant. B) Trent who makes a $ 100, 000/year as a consultant. C) Jonathan who makes $ 75, 000/year as an account for the Federal Reserve. D) I don't know, I still don't get this!. Show Answer Correct Answer: B) Trent who makes a $ 100, 000/year as a consultant. 4. Assume Truelove and Barrientes World had a balanced budget when the year began. Unexpectedly, at the end of the year tax revenues were $ 4 million higher than expected and spending was exactly as budgeted. Which situation is Truelove and Barrientes World in currently? A) Budget surplus. B) Budget deficit. C) Trade surplus. D) Trade deficit. Show Answer Correct Answer: A) Budget surplus. 5. Equilibrium A) The study of how society manages its scarce resources. B) The price at which the amount producers are willing to supply is equal to the amount consumers are willing to buy. C) A state in which opposing forces or influences are balanced. D) Land, labor, capital, entrepreneurship. Show Answer Correct Answer: A) The study of how society manages its scarce resources. 6. Why we need a protectionism in international trade? A) To increase employment in the country. B) To protect young industries. C) To increase income. D) To encourage dumping. Show Answer Correct Answer: B) To protect young industries. 7. A country can be said to be experiencing hyperinflation if..... A) Inflation rate 10% per year. B) Inflation rate 50% per year. C) Inflation rate 50% per Month. D) Inflation rate 10% per Month. Show Answer Correct Answer: C) Inflation rate 50% per Month. 8. Consider the various types of unemployment discussed in the text, which type of unemployment is LEAST likely to be affected by government policies? A) Structural unemployment. B) Frictional unemployment. C) Recessionary unemployment. D) Cyclical unemployment. E) All of the above, since policies have no effect on unemployment. Show Answer Correct Answer: B) Frictional unemployment. 9. If the Federal Reserve is using an expansionary monetary policy, where it is trying to increase the money supply it would do all of the following except ..... A) Decrease discount rate. B) Buy bonds on the open market. C) Increase reserve requirement. D) Decrease interest payments on reserves. Show Answer Correct Answer: C) Increase reserve requirement. 10. When an individual is unemployed because they are looking for a new job. A) Frictional Unemployment. B) Cyclical Unemployment. C) Structural Unemployment. D) Seasonal Unemployment. Show Answer Correct Answer: A) Frictional Unemployment. 11. The three macroeconomic goals are A) Supply, Demand, and Determinants. B) Steady Economic Growth, Low Unemployment, and Price Stability. C) Inelasticity, Price Ceilings, and Government Regulation. D) Marginal Utility, Glass Ceilings, and GDP. Show Answer Correct Answer: B) Steady Economic Growth, Low Unemployment, and Price Stability. 12. Which of the following is not a function of a commercial bank? A) Banknote printing. B) Mobilize deposits. C) Provide credit. D) Transfer money between accounts. Show Answer Correct Answer: A) Banknote printing. 13. All of the following are tools in monetary policy except ..... A) Reserve Requirements. B) Stocks. C) Open Market Operations. D) Discount Rate. Show Answer Correct Answer: B) Stocks. 14. Which one of the advantages below related with a LOWER OPPORTUNITY COST? A) Absolute advantages. B) Comparative advantages. Show Answer Correct Answer: B) Comparative advantages. 15. Imagine you are an economist studying a particular country. You want to calculate the total value of all final goods and services produced in that country in a given year. What term would you use to describe this? A) Gross Domestic Product. B) Consumer Price Index. C) Inflation. D) Unemployment. Show Answer Correct Answer: A) Gross Domestic Product. 16. If unemployed workers decide to stop looking for a job and instead enroll in further education, how will the number of employed workers and the unemployment rate change? A) The number of employed workers does not change; the unemployment rate decreases. B) The number of employed workers does not change; the unemployment rate does not change. C) The number of employed workers increases; the unemployment rate decreases. D) The number of employed workers decreases; the unemployment rate increases. E) The number of employed workers does not change; the unemployment rate increases. Show Answer Correct Answer: A) The number of employed workers does not change; the unemployment rate decreases. 17. If the central bank sets the interest rate to be forced higher, what kind of credit will commercial banks be able to give? A) Increased. B) Decrease. C) Does not change. D) All wrong. Show Answer Correct Answer: B) Decrease. 18. Which of the following is a reason for increase in AD? A) Decrease in consumption. B) Decrease in investment. C) Decrease in export. D) Decrease in import. Show Answer Correct Answer: D) Decrease in import. 19. 'More productive workers receive higher wages than less productive workers.' This observation is a major flaw in which of the following arguments for protectionism? A) The infant industry argument. B) The national security argument. C) The employment argument. D) The cheap foreign labour argument. Show Answer Correct Answer: D) The cheap foreign labour argument. 20. Which of the following is not one of the three market arenas? A) Financial market. B) Goods and services market. C) Labor market. D) Business market. Show Answer Correct Answer: D) Business 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