This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Macroeconomics – Quiz 249 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 249 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. In a system of fractional-reserve banking, even without any action by the central bank, the money supply declines if households choose to hold ..... currency or if banks choose to hold ..... excess reserves. A) More. B) Less. Show Answer Correct Answer: A) More. 2. In the circular flow model, what do individuals SELL to businesses A) Services. B) Money. C) Resources. D) Goods. Show Answer Correct Answer: C) Resources. 3. How would the proportions of different age groups in the population compare between low-income developing countries and high-income developed countries? Low-income developing countries would have a A) Higher proportion of the elderly and higher proportion of young people. B) Higher proportion of the elderly and lower proportion of young people. C) Lower proportion of the elderly and higher proportion of young people. D) Lower proportion of the elderly and lower proportion of young people. Show Answer Correct Answer: C) Lower proportion of the elderly and higher proportion of young people. 4. What is the impact of technological progress on productivity? A) Technological progress has no impact on productivity. B) Technological progress leads to decreased productivity. C) Technological progress leads to increased productivity. D) Technological progress leads to fluctuating productivity. Show Answer Correct Answer: C) Technological progress leads to increased productivity. 5. During the contraction phase of a business cycle, it is most likely that: A) Inflation indicators are stable. B) Aggregate economic activity relative to potential output is decreasing. C) Investor preference for government securities declines. D) None of above. Show Answer Correct Answer: B) Aggregate economic activity relative to potential output is decreasing. 6. Analyzing the consequences of a free trade agreement between two countries A) Macroeconomics. B) Microeconomic. Show Answer Correct Answer: A) Macroeconomics. 7. Consider the problem Marsha faces of how to allocate her weekly allowance between books and videos. How will an increase in Marsha's allowance affect her budget on a supply and demand curve? A) Rotate her budget line, allowing her to buy more books but not more videos. B) Rotate her budget line, allowing her to buy more videos but not more books. C) Shift her budget line to the right. D) Shift her budget line to the left. Show Answer Correct Answer: C) Shift her budget line to the right. 8. What happen if export goods is more than import goods? A) Balance of payment surplus. B) Balance of payment deficit. Show Answer Correct Answer: A) Balance of payment surplus. 9. Which of the following has the same effect on the economy as increasing government spending is..... A) Increased tax rates. B) Tax rate cuts. C) Increase in the amount of money in circulation. D) Withdrawal of the amount of money in circulation. Show Answer Correct Answer: B) Tax rate cuts. 10. An example of final goods in national income accounts would be: A) New lawn mowers purchased by Cut-Rite Lawn Equipment & Supplies. B) Flowers and pots purchased by homeowner Joe Smith. C) Chemicals purchased by Green Grass Lawn Care Services. D) Seedlings and saplings purchased for resale by Wendy's Garden Center. Show Answer Correct Answer: B) Flowers and pots purchased by homeowner Joe Smith. 11. After much debate in congress, the House and Senate finally passed a bill calling for a 1 percent tax decrease and a cut in federal funding to artistic institutions. The president then signs the bill. This is an example of the government's A) Monetary policy. B) Open market operations. C) Fiscal policy. D) Tight money pollicy. Show Answer Correct Answer: C) Fiscal policy. 12. Which of the following is NOT a macroeconomics objective? A) To achieve equal distribution of income. B) To maintain domestic price instability. C) To achieve full employment of resources. D) To achieve sustainable economic growth. Show Answer Correct Answer: B) To maintain domestic price instability. 13. Autonomous expenditures are expenditures that changes when income changes. A) True. B) False. Show Answer Correct Answer: B) False. 14. As a limit to economic growth, environmental problems are more difficult to solve than resource problems because: A) Environmental problems don't automatically provide incentives for changed behavior. B) Resource problems don't automatically provide incentives for changed behavior. C) The opportunity cost of solving environmental problems in terms of GDP sacrificed is larger. D) The majority of scientists haven't determined the relationship between greenhouse gas emissions and climate change. E) Individuals rarely respond to higher prices when government taxes the products that create environmental problems. Show Answer Correct Answer: A) Environmental problems don't automatically provide incentives for changed behavior. 15. What monetary policy would the Federal Reserve adopt to stimulate economic growth? A) Increasing the supply of money. B) Lowering the supply of money. C) Increasing federal tax rates. D) Lowering federal tax rates. Show Answer Correct Answer: A) Increasing the supply of money. 16. The act of giving up one thing of value to gain another thing of value when both cannot be had at the same time A) Opportunity Cost. B) Trade Off. C) Unemployment. D) Goal. Show Answer Correct Answer: B) Trade Off. 17. The unemployment rate will drop if A) A person is hired into a new job. B) Someone who was previously laid off is rehired. C) An unemployed person stops looking. D) ALL of these answers are CORRECT. Show Answer Correct Answer: D) ALL of these answers are CORRECT. 18. Convergence theory states that countries that start out poor will grow faster than rich ones and eventually converge to the same growth rate as the rich ones. A) True. B) False. Show Answer Correct Answer: A) True. 19. Which of the following refers to a regressive tax? A) Tax rates are positively correlated with the interest rates. B) Tax rates differ from the income. C) Tax rates are positively related to the income. D) Tax rates are not dependent on the income. Show Answer Correct Answer: B) Tax rates differ from the income. 20. Countries become ..... when trade and competition among countries increases. A) Interdependent. B) Greedy. C) Cheap. D) None of above. Show Answer Correct Answer: A) Interdependent. ← 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