This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Macroeconomics – Quiz 239 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 239 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Macroeconomics is primarily concerned with studying two broad topics: A) Long-run economic growth and short-run business cycles. B) The price of oil and gas abroad and prices of energy in the domestic market. C) The stock market and the housing market. D) Household incomes and firms' profits. Show Answer Correct Answer: A) Long-run economic growth and short-run business cycles. 2. Of the 3 Economics Systems you looked at, a "planned economy" is most like: A) Traditional. B) Command. C) Market. D) None of above. Show Answer Correct Answer: B) Command. 3. What is full employment in economic terms? A) When everyone has a job. B) When all adults have a job. C) When the unemployment rate is lower than the inflation rate. D) When we have the lowest unemployment rate possible without unacceptably high inflation. E) We can't reach full employment. Show Answer Correct Answer: D) When we have the lowest unemployment rate possible without unacceptably high inflation. 4. Which of the following is not an economics indicator discussed in class? A) Presidential Policy. B) Inflation. C) Gross Domestic Product. D) Unemployment. Show Answer Correct Answer: A) Presidential Policy. 5. The exploitation of the inflation situation by companies to make it appear as if it has the effect of making people unaware that they are actually experiencing a decrease in wages, is an illustration of the situation of the term..... A) The Option of Negative Real Interest Rates. B) Money Illusion in The Other Side of The Coin. C) The Option of Positive Real Interest Rates. D) The Layman's View and the Classical Response. Show Answer Correct Answer: B) Money Illusion in The Other Side of The Coin. 6. What is macroeconomic policy objective? A) To increase employment. B) To increase the output of the car industry. C) To reduce the price level. D) To reduce economic growth. Show Answer Correct Answer: A) To increase employment. 7. Every transaction has a consumer and a buyer A) True. B) False. Show Answer Correct Answer: B) False. 8. The wealth effect states that higher prices ..... the purchasing power or the real value of the nation's households' wealth and savings. A) Increase. B) Stagnate. C) Reduce. D) Double. Show Answer Correct Answer: C) Reduce. 9. Good Society is determined by three dimensions, of the Social Production Indicators; the Basic Human Needs, Opportunity and Foundations of Wellbeing. A) True. B) False. Show Answer Correct Answer: B) False. 10. Which one of the following best describes the action of the accelorator theory of investment? A) Firms decide to invest more following a cut in bank rate. B) Firms invest in capital equipment due to higher economic growth. C) Improved business confidence causes firms to increase their investment. D) Large profits encourage firms to invest in new capital equipment. Show Answer Correct Answer: B) Firms invest in capital equipment due to higher economic growth. 11. Even if one country has an absolute advantage in the production of two products, it may still be advantageous to trade with another nation A) True. B) False. Show Answer Correct Answer: A) True. 12. Consumption is defined as ..... A) Purchase of goods and service. B) The higher the income the higher consumption. C) Not depend on income. D) High disposable income. Show Answer Correct Answer: A) Purchase of goods and service. 13. What happens to consumers purchasing power during peak A) It increases. B) It decreases. C) It stays the same. D) None of above. Show Answer Correct Answer: B) It decreases. 14. Which of these will the government do to repay the national debt?I Cut spending.II Raise taxes.III Increase interest rates.IV Borrow more money. A) III and IV only. B) I and II only. C) IV only. D) II only. Show Answer Correct Answer: B) I and II only. 15. Which one of them is an Indirect tax A) Special Assessment Tax. B) Excise Duty. C) Fees. D) Corporation Tax. Show Answer Correct Answer: B) Excise Duty. 16. Tax incentives given to firms to promote technological development, A) Reduces production costs. B) Maintain production costs. C) Increases production costs. D) Reduces production output. Show Answer Correct Answer: A) Reduces production costs. 17. ..... shows the various mixes of output that an economy can produce. A) MODERN ECONOMY. B) TRADE. C) Production possibilities frontier. D) None of above. Show Answer Correct Answer: C) Production possibilities frontier. 18. ..... are licensing systems that limit the right of individuals to buy foreign currency. A) Foreign Exchange Controls. B) Exchange Market Intervention. C) Foreign Exchange Reserves. D) Floating Exchange Rate. Show Answer Correct Answer: A) Foreign Exchange Controls. 19. A corporation that operates in many different countries or nations A) Major. B) Transcontinental. C) Multinational. D) Massive. Show Answer Correct Answer: C) Multinational. 20. ..... is the most basic or fundamental economic problem. A) Scarcity. B) Labor. C) Greed. D) Capital. 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