This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Macroeconomics – Quiz 24 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 24 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. T.V., radio, washing machine, etc., are examples of: A) Durable consumer goods. B) Single-use consumer goods. C) Semi-durable consumer goods. D) Capital goods. Show Answer Correct Answer: A) Durable consumer goods. 2. In which situation might the Federal Reserve buy government securities or lower its discount rate? A) In a recession. B) In the middle of an expansion phase. C) When inflation is too high. D) When aggregate demand is too high. Show Answer Correct Answer: A) In a recession. 3. When a country (like the U.S.) imports MORE goods/services than they export, their net exports will be ..... A) Positive. B) Negative. Show Answer Correct Answer: B) Negative. 4. Goods or services produced in a foreign country and shipped into the United States. A) Entitlements. B) Subsidies. C) Tariffs. D) Imports. E) Exports. Show Answer Correct Answer: D) Imports. 5. A high marginal propensity to consume implies which of the following? A) A small change in consumption when income changes. B) A high savings rate. C) A high marginal tax rate. D) An equilibrium level of income near full employment. E) A low marginal propensity to save. Show Answer Correct Answer: E) A low marginal propensity to save. 6. Monetary value of final capital goods businesses purchase in a given time period, the value of inventories produced by businesses, but not yet sold, by the end of the measurement time period, and the value of new home construction in a given time period. A) Consumer Spending. B) Investment. C) Government Spending. D) Net Exports. Show Answer Correct Answer: B) Investment. 7. C + I + G + (X-M) =??? A) GDP. B) CPI. C) Unemployment. D) None answer is correct. Show Answer Correct Answer: A) GDP. 8. The total value of all final goods and services produced in the economy during a given year, calculated using the prices of a selected base year A) Real GDP. B) Nominal GDP. C) Real GDP per Capita. D) GDP. Show Answer Correct Answer: A) Real GDP. 9. The following is a category of taxes structure EXCEPT ..... A) Proportional tax. B) Progressive tax. C) Regressive tax. D) Service tax. Show Answer Correct Answer: D) Service tax. 10. The term Tax Cost is relevant when..... A) The government taxes the Nominal Interest Rate on an investment. B) The government taxes the Real Interest Rate on an investment. C) The government does not carry out any taxation on investment. D) The government does leasing on losses experienced by individuals on an investment. Show Answer Correct Answer: A) The government taxes the Nominal Interest Rate on an investment. 11. If INFLATION is happening what could the FEDERAL RESERVE do to help stop prices from rising? A) Increase the Money Supply. B) Decrease the Money Supply. C) Increase Taxes. D) Decrease Taxes. Show Answer Correct Answer: B) Decrease the Money Supply. 12. Issuing currency is the monopoly of the central bank. A) True. B) False. Show Answer Correct Answer: A) True. 13. The Federal Reserve wants to increase the money supply in the United States. What is the Federal Reserve likely to do to accomplish this? A) Reduce the discount rate. B) Sell securities on the open market. C) Increase the reserve requirement for banks. D) Require banks to hold a reserve for all types of deposits. Show Answer Correct Answer: A) Reduce the discount rate. 14. What happens when a company purposely prices their products very low, in an attempt to get people to try them? A) Equilibrium. B) Price floor. C) Surplus. D) Shortage. Show Answer Correct Answer: D) Shortage. 15. Productively Efficient A) Y-axis. B) Producing in a way that best uses all of the economy's resources. C) Vthe amount of a good or service that a firm is willing and able to supply at a given price. D) A graph that describes the maximum amount of one good that can be produced for every possible level of production of the other good. Show Answer Correct Answer: B) Producing in a way that best uses all of the economy's resources. 16. GDP is the market value of all goods and services produce in an economy within one year period, including final and intermediary goods A) True. B) False. Show Answer Correct Answer: B) False. 17. One person using something limits the ability of others to use it is called A) Rivalry. B) Scarcity. C) Sharing. D) None of above. Show Answer Correct Answer: A) Rivalry. 18. While pollution regulations yield the benefit of a cleaner environment and the improved health that comes with it, the regulations come at the cost of reducing the incomes of the regulated firms' owners, workers, and customers. This statement illustrates the principle that: A) Trade can make everyone better off. B) Rational people think at the margin. C) People face tradeoffs. D) People respond to incentives. Show Answer Correct Answer: C) People face tradeoffs. 19. The Federal Reserve can increase the money supply by A) Selling gold reserves to the banks. B) Selling foreign currency holdings. C) Buying government bonds on the open market. D) Buying gold from foreign central banks. E) Borrowing reserves from foreign governments. Show Answer Correct Answer: C) Buying government bonds on the open market. 20. An economy with the main goals of security and stability is labeled a ..... A) Command economy. B) Market economy. C) Traditional economy. D) Mixed economy. Show Answer Correct Answer: C) Traditional economy. ← 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