This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Macroeconomics – Quiz 247 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 247 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. If the government spend more than what it receive from tax, we could say that the government is running on ..... A) Balance budget. B) Budget tightening. C) Budget surplus. D) Budget deficit. E) Not balance budget. Show Answer Correct Answer: D) Budget deficit. 2. Which is NOT a determinant of consumer spending A) Consumer debt. B) Personal income tax cuts / increases. C) Consumer wealth. D) Appreciation/depreciation of the dollar. Show Answer Correct Answer: D) Appreciation/depreciation of the dollar. 3. How many different types of economies are there? A) 1. B) 2. C) 3. D) 4. Show Answer Correct Answer: D) 4. 4. When precious metals are used as currency, like gold or silver, it is this type of money ..... A) Commodity Money. B) Specie Money. C) Fiat Money. D) Loan. E) Interest. Show Answer Correct Answer: B) Specie Money. 5. Which of the following is a macroeconomics objective? A) Unemployment. B) Extremely high economic growth. C) Employed all available resources. D) Inflation. Show Answer Correct Answer: C) Employed all available resources. 6. What is the primary focus of macroeconomics? A) Analyzing individual businesses. B) Understanding the behavior of the entire economy. C) Examining consumer spending habits. D) Studying microeconomic trends. Show Answer Correct Answer: B) Understanding the behavior of the entire economy. 7. Monetary policy:decrease in M A) Shifts IS curve to right. B) Shifts IS curve to left. C) Shifts LM curve to right. D) Shifts LM curve to left. Show Answer Correct Answer: D) Shifts LM curve to left. 8. In the business cycle, growing G.D.P. and inflation are signs of a recession. A) True. B) False. Show Answer Correct Answer: B) False. 9. The table below shows a country's macroeconomic data in 2013. A) $ 220 billion. B) $ 282 billion. C) $ 304 billion. D) $ 309 billion. E) $ 347 billion. Show Answer Correct Answer: A) $ 220 billion. 10. In a circular flow diagram, households send ..... to firms in return for ..... A) Resources/spending. B) Spending/resources. C) Resources/ wages and profits. D) Goods and services/ wages. E) Goods and services/ spending. Show Answer Correct Answer: C) Resources/ wages and profits. 11. Why is it important for the members of the Board of Governors of the Federal Reserve to have longer terms in office than elected officials, like the President? A) To maintain the independence and stability of the Federal Reserve from short-term political pressures. B) To ensure the Board of Governors can make decisions without any accountability. C) To allow the Board of Governors to serve for life without any term limits. D) To give the Board of Governors more power than the President. Show Answer Correct Answer: A) To maintain the independence and stability of the Federal Reserve from short-term political pressures. 12. Price stability refers to which of the following? A) Minimizing increases in the price level over time so that a country's money will retain its purchasing power over time. B) Maximizing increases in the price level over time so that a country's money will retain its purchasing power over time. C) Prices remaining the same level over time so that a country's money will retain its purchasing power over time. D) None of the above. Show Answer Correct Answer: A) Minimizing increases in the price level over time so that a country's money will retain its purchasing power over time. 13. Disequilibrium in Balance of payments leads to: A) (a) Increase or decrease in official reserves with RBI. B) (b) Increase or decrease in rate of commercial banks. C) Both (a) and (b). D) None of these. Show Answer Correct Answer: A) (a) Increase or decrease in official reserves with RBI. 14. The self-regulating nature of the marketplace A) Communism. B) Macroeconomics. C) Automatic fix. D) Invisible hand. Show Answer Correct Answer: D) Invisible hand. 15. Predicting how consumers will react to higher gasoline prices A) Macroeconomics. B) Microeconomic. Show Answer Correct Answer: B) Microeconomic. 16. What happens if you do not pay a credit card bill on time? A) Use your debit card. B) You go into debt. C) Declare bankrupty. D) Pay interest. Show Answer Correct Answer: D) Pay interest. 17. The creation of any kind of good or service is known as: A) Input. B) Resources. C) Production. D) Entrepreneurship. Show Answer Correct Answer: C) Production. 18. Which technique of labor unions was the most effective for unskilled labor? A) Strikes. B) Walk outs. C) Arbitration. D) Yellow Dog Contracts. Show Answer Correct Answer: A) Strikes. 19. This is something that someone does for you for which you pay them (ie:a haircut or lawn mowing) A) Goods. B) Services. C) Producer. D) Consumer. Show Answer Correct Answer: B) Services. 20. Which of the following would cause a leftward shift of the production possibilities curve? A) An increase in unemployment. B) An increase in inflation. C) An increase in capital equipment. D) A decrease in consumer demand. E) A decrease in the population. Show Answer Correct Answer: E) A decrease in the population. ← 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