This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Macroeconomics – Quiz 236 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 236 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. External Trade in intangible services and software is recorded under which account in Balance of Payments in India? A) Trade Account. B) Capital Account. C) Invisible Account. D) Financial Account. Show Answer Correct Answer: C) Invisible Account. 2. What is the relationship between GDP and standard of living? A) GDP and standard of living are directly proportional. B) GDP and standard of living are inversely proportional. C) GDP has no impact on standard of living. D) Standard of living has no impact on GDP. Show Answer Correct Answer: A) GDP and standard of living are directly proportional. 3. What is the consequence when foreign income increases? A) Increase in foreign demand by foreign residents. B) Increase in domestic demand by foreign residents. C) Increase in foreign demand by domestic residents. D) Increase in domestic demand by domestic residents. Show Answer Correct Answer: B) Increase in domestic demand by foreign residents. 4. Which of the following would cause the supply of labour to increase? A) Lowering the retirement age. B) Raising the school leaving age. C) Better provision of child-care for very young children. D) Stricter controls on immigration. Show Answer Correct Answer: C) Better provision of child-care for very young children. 5. Why might the Federal Reserve change the discount rate? A) To prompt financial institutions to alter their lending activity. B) To encourage financial institutions to hold excess reserves for profit. C) To convince financial institutions to decrease their cash on deposit. D) To signal financial institutions to purchase government securities. Show Answer Correct Answer: A) To prompt financial institutions to alter their lending activity. 6. Workers are an example of which factor of production? A) Land. B) Labor. C) Capital. D) Workers are not part of the factors of production. Show Answer Correct Answer: B) Labor. 7. Measures wholesale price levels in the economy. A) Consumer Price Index (CPI). B) Gross National Product (GNP). C) Gross Domestic Product (GDP. D) Producer Price Index (PPI). Show Answer Correct Answer: D) Producer Price Index (PPI). 8. What causes LM curve to shift leftward? A) Increase in government expenditure. B) Decrease in taxation. C) Decrease in money supply. D) Increase in money supply. Show Answer Correct Answer: C) Decrease in money supply. 9. What a buyer pays for a unit of the specific good or service A) Price floor. B) Price control. C) Price ceiling. D) Price. Show Answer Correct Answer: D) Price. 10. Imagine Benjamin, Oliver, and Aiden are playing a game of 'World Leaders'. In this game, they are leaders of different countries. If Oliver's country operates under an economic system where major economic decisions are made by the central government, what kind of economy is he running? A) Traditional economy. B) Command economy. C) Market economy. D) Mixed economy. Show Answer Correct Answer: B) Command economy. 11. If you buy part of a company this is called a A) Share. B) Dividend. C) Patent. D) None of above. Show Answer Correct Answer: A) Share. 12. The insurance company I worked for laid off everyone in our office and outsourced the work to a foreign country. This is an example of ..... unemployment. A) Cyclical. B) Structural. C) Frictional. D) None of above. Show Answer Correct Answer: B) Structural. 13. Farmer Joe cannot plant crops during summer. In this case, he is ..... A) Seasonally unemployed. B) Fictionally unemployed. C) Cyclically unemployed. D) Structurally unemployed. Show Answer Correct Answer: A) Seasonally unemployed. 14. What is the formula of APS? A) $\Delta$. B) S/Y. C) Y/S. D) None of above. Show Answer Correct Answer: B) S/Y. 15. Is this counted in the GDP of the US?Your parents ask you to babysit your two younger siblings for the night. A) Yes. B) No. Show Answer Correct Answer: B) No. 16. What type of unemployment is a person experiencing when they are laid off during a recession? A) Frictional. B) Seasonal. C) Cyclical. D) Structural. Show Answer Correct Answer: C) Cyclical. 17. GDP measures a country's level of(I) production(II) stability(III) income A) I only. B) II only. C) III only. D) I and II. E) I and III. Show Answer Correct Answer: E) I and III. 18. Which country had hyperinflation in the early 2000's? A) Canada. B) United Kingdom. C) Zimbabwe. D) United States. Show Answer Correct Answer: C) Zimbabwe. 19. What do you understand by domestic factor receipt plus NFIA? A) NDP at MP. B) NNP at MP. C) GNP at FC. D) National Income. Show Answer Correct Answer: D) National Income. 20. Tax cuts on business income increase aggregate demand by increasing A) Wage rates. B) Business investment spending. C) Government spending. D) Consumption spending. Show Answer Correct Answer: B) Business investment 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