This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Macroeconomics – Quiz 238 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 238 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. When people have to buy fewer goods and services this can be the direct result of ..... A) Deflation. B) Inflation. C) Market growth. D) Money supply. Show Answer Correct Answer: B) Inflation. 2. What is a trade tariff? A) A tax on traded goods. B) A tax on imported goods. C) Sales tax. D) Property tax. Show Answer Correct Answer: A) A tax on traded goods. 3. When the government increases spending, the price level and employment are MOST LIKELY to change in which of the following ways? A) Price Level Increase & Decrease in Unemployment. B) Price Level Increase & Increase in Unemployment. C) Price Level Decrease & Decrease in Unemployment. D) Price Level Decrease & Increase in Unemployment. Show Answer Correct Answer: A) Price Level Increase & Decrease in Unemployment. 4. A country's ..... are a summary of the country's transactions with other countries. A) Balance of Payments Accounts. B) Balance of Payments on the Current Account. C) Balance of Payments on Goods and Services. D) Balance of Payments on the Financial Account. Show Answer Correct Answer: A) Balance of Payments Accounts. 5. Which statement about international trade is true? A) Countries tend to specialize in goods or services where they have minimal gains and losses. B) Countries tend to specialize in goods or services where they have a comparative advantage. Show Answer Correct Answer: B) Countries tend to specialize in goods or services where they have a comparative advantage. 6. The government pays for public goods and services through- A) Donations from wealthy politicians. B) Donations from foreign nations. C) Revenue from sales and income taxes. D) Revenue from the lottery. Show Answer Correct Answer: C) Revenue from sales and income taxes. 7. The following are factors that influence a country's exports, imports and net exports, except..... A) Consumer tastes for domestic and foreign produced goods. B) The price of goods in the country and abroad. C) Consumer income at home and abroad. D) Technology invested in a country. Show Answer Correct Answer: D) Technology invested in a country. 8. Macroeconomics does not study: A) The behavior of individual businesses and consumers. B) Overall economic trends. C) Interactions among economic factors in the whole economy. D) The world economy. Show Answer Correct Answer: A) The behavior of individual businesses and consumers. 9. The primary of role of money in the economy is to A) Help set the interest rates at financial institutions. B) Identify prices of goods and services. C) Provide a mechanism to assist foreign trade. D) Serve as a medium of exchange for goods and services. Show Answer Correct Answer: D) Serve as a medium of exchange for goods and services. 10. An externality is the uncompensated impact of one person's actions on the well being of a bystander. A) True. B) False. Show Answer Correct Answer: A) True. 11. Who is the economic philosopher who argued that fiscal policy should be used to minimize the peaks and troughs of the business cycle in order to maintain steady economic growth? A) John Maynard Keynes. B) Adam Smith. C) Karl Marx. D) Arthur Laffer. Show Answer Correct Answer: A) John Maynard Keynes. 12. Government policies regarding taxes and expenditures are called ..... A) Fiscal policies. B) Growth policies. C) Monetary policies. D) Supply side policies. Show Answer Correct Answer: A) Fiscal policies. 13. Deficit balance of payment is one of problems of macroeconomics goal. A) TRUE. B) FALSE. Show Answer Correct Answer: A) TRUE. 14. In 2010, Mexico placed a limit on the amount of potatoes it will import. A) Tariff. B) Quota. C) Embargo. D) None of above. Show Answer Correct Answer: B) Quota. 15. The value of multiplier depends on A) Investment. B) Income. C) Marginal Propensity to consume. D) Average Propensity to consume. Show Answer Correct Answer: C) Marginal Propensity to consume. 16. The study of labor is part of the branch of economics called ..... A) Macroeconomics. B) Microeconomics. C) Civilian Labor Force. D) The Right-to-Work. Show Answer Correct Answer: A) Macroeconomics. 17. Arises when aggregate demand in an economy outpaces aggregate supply A) Proportional Tax. B) Discount Rate. C) Expansionary Tax. D) Demand-Pull Inflation. Show Answer Correct Answer: D) Demand-Pull Inflation. 18. Mike has spent $ 500 purchasing and repairing an old fishing boat, which he expects to sell for $ 800 once the repairs are complete. He discovers that he needs an additional repair, which will cost $ 400, in order to complete the repairs. He can sell the boat as it is now for $ 300. What should he do? A) He should cut his losses and take the $ 300. B) He should never sell something for less than it cost. C) He should complete the repairs and sell the boat. D) It doesn't matter which action he takes; the outcome is the same either way. Show Answer Correct Answer: C) He should complete the repairs and sell the boat. 19. If the business community becomes more optimistic about the profitability of capital, the ..... curve for loanable funds would shift, driving the equilibrium interest rate ..... A) Demand; up. B) Supply; up. C) Demand; down. D) Supply; down. Show Answer Correct Answer: A) Demand; up. 20. All of the following are components of productivity, except A) Physical capital. B) Human capital. C) Technological improvements. D) Natural resources. E) Finance capital. Show Answer Correct Answer: E) Finance capital. ← 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