This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Macroeconomics – Quiz 241 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 241 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Progressive taxes A) Are higher the more you make. B) Are lower the more you make. C) Are the same for everyone. D) None of above. Show Answer Correct Answer: A) Are higher the more you make. 2. Which of the following is excluded from taxable income? A) Rent. B) Interests. C) Wages. D) 13th Month pay. Show Answer Correct Answer: D) 13th Month pay. 3. What measure the rise in the price of goods over time? A) Gross Domestic Product. B) Inflation. C) Consumer Price Index. D) Unemployment Rate. Show Answer Correct Answer: C) Consumer Price Index. 4. If nominal GDP in 2022 exceeds nominal GDP in 2021, then the production of output must have ..... A) Risen. B) Fallen. C) Stayed the same. D) Risen or fallen because there is not enough information to determine what happened to real output. Show Answer Correct Answer: D) Risen or fallen because there is not enough information to determine what happened to real output. 5. To implement contractionary fiscal policy, the government is likely to A) Cut both taxes and spending. B) Increase both taxes and spending. C) Cut taxes and increase spending. D) Increase taxes and cut spending. Show Answer Correct Answer: D) Increase taxes and cut spending. 6. Ramen noodles are a staple food item for many college students. Ramen noodles are very inexpensive, easy to prepare, and can be combined easily with other foods. After students graduate, find employment, and earn a higher income, they decrease their Ramen noodle purchases significantly. In this case, Ramen noodles are: A) A normal good. B) An inferior good. C) A complement for higher income people. D) None of these are correct. Show Answer Correct Answer: B) An inferior good. 7. Which is an example of investment in human capital? A) Trucks. B) Factories. C) Education. D) Highways. Show Answer Correct Answer: C) Education. 8. There is a ..... on the nominal interest rate:it cannot go below zero. A) Zero Bound. B) Zero Limit. C) Zero Frontier. D) Zero Curve. Show Answer Correct Answer: A) Zero Bound. 9. Aggregate Demand is represented by which formula? A) C + I + G + X-M. B) C + I + X + X-M. C) I + X + X-M. D) C + M + X. Show Answer Correct Answer: A) C + I + G + X-M. 10. Chloe takes $ 100 of currency from her wallet and deposits it into her checking account. If the bank adds the entire $ 100 to reserves, the money supply ....., but if the bank lends out some of the $ 100, the money supply ..... A) Increases, increases even more. B) Increases, increases by less. C) Is unchanged, increases. D) Decreases, decreases by less. Show Answer Correct Answer: C) Is unchanged, increases. 11. TRUE or FALSE:Gross domestic product is defined as the value of all final and intermediate goods newly produced in an economy in a given period of time. A) TRUE. B) FALSE. Show Answer Correct Answer: B) FALSE. 12. An index that measures the prices of a market basket of goods that typical consumers purchase. A) Consumer Price Index. B) Federal Reserve. C) Bank. D) Deflation. Show Answer Correct Answer: A) Consumer Price Index. 13. Which statement does not describe a responsibility of the Reserve Banks? A) They lend to depository institutions. B) They supervise and examine state member banks. C) They provide banking services, such as accounts, to individuals. D) They provide key financial services such as distributing the nation's currency. Show Answer Correct Answer: C) They provide banking services, such as accounts, to individuals. 14. India is experiencing rapid growth in air travel. The number and size of airlines is increasing every year. Which effect arising from this growth is an external economy of scale? A) Banks offer low-cost credit facilities to large airlines. B) Fuel suppliers charge lower prices to airlines that buy in bulk. C) Colleges are established to train flight crew. D) Larger airlines operate aircraft which can carry more passengers. Show Answer Correct Answer: C) Colleges are established to train flight crew. 15. Suppose that gifts were taxed at a rate of 10% for amounts up to $ 100, 000 and 20% for anything over that amount. Would this tax be regressive or progressive? A) Regressive. B) Proportional. C) Progressive . D) None of above. Show Answer Correct Answer: A) Regressive. 16. Economic growth will likely involve: A) A reduction in investment. B) A decrease in the capital stock. C) Higher saving. D) Lower saving. E) A downward shift in the aggregate production function. Show Answer Correct Answer: C) Higher saving. 17. Porsche, a German automaker, produces cars at a plant in Hapeville, GA. What is included in the GDP for the U.S.? A) All cars produced by the plant. B) Only cars produced by the plant and sold to Americans. C) The value of the American-made parts used to put the cars together. D) Nothing. Show Answer Correct Answer: A) All cars produced by the plant. 18. Machinery, tools, and trucks to transport goods are examples of which of the four factors of production? A) Human resources. B) Natural resources. C) Entrepreneur. D) Capital goods. Show Answer Correct Answer: D) Capital goods. 19. Use information in the following table to answer questions #12-#14. Production Possibilities Alternatives Product A B C D E F Tanks 0 1 2 3 4 5 Autos 1000 950 850 650 350 0According to the PP schedule, a combination of 4 tanks and 650 autos: A) Illustrates the tradeoff between tanks and autos when resources are fully and efficiently employed. B) Is attainable but involves the inefficient use of some of society's resources. C) Cannot be produced by society, given its current resources and technology. D) Is neither desirable nor attainable. Show Answer Correct Answer: C) Cannot be produced by society, given its current resources and technology. 20. Eleanor is a senior in high school who tutors a freshman in high school. In exchange, she only receives free housing cleaning from the freshman's family. How would she be categorized by the BLS? A) Employed. B) Unemployed. C) Underemployed. D) Not in the Labor Force. Show Answer Correct Answer: D) Not in the Labor Force. ← 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