This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Macroeconomics – Quiz 25 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 25 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What does the GDP deflator measure? A) The economy's prices of final goods in a period of time. B) The economy's prices of intermediate goods in a period of time. C) The economy's prices of all goods and services in a period of time. D) The economy's prices of imports and exports in a period of time. Show Answer Correct Answer: A) The economy's prices of final goods in a period of time. 2. The ..... is a hypothetical function that shows how productivity (output per worker) depends on the quantities of physical capital per worker and human capital per worker as well as the state of technology. A) Aggregate Production Function. B) Capital Production Function. C) Aggregate S/D Function. D) Productivity Function. Show Answer Correct Answer: A) Aggregate Production Function. 3. As a macroeconomic indicator, it refers to the percentage of the population that is:*OUT of work.*LOOKING for work.*WILLING to work. A) Inflation. B) Unemployment. C) Monetary Policy. D) Growth Domestic Product. Show Answer Correct Answer: B) Unemployment. 4. The inflation rate is A) The ability to buy goods or services. B) Measured in fixed dollars. C) Not an important measure to economists. D) The percentage change in prices over time. Show Answer Correct Answer: D) The percentage change in prices over time. 5. Production Possibilities for Toyland Dolls/Fire Trucks 400/0 300/200 200/350 100/450 0/500 Which of the following statements accurately describes the production possibilities for Toyland? A) The opportunity cost of an additional 100 dolls is 500 fire trucks. B) The opportunity cost of an additional 100 dolls decreases as more dolls are produced. C) Without more information, it is impossible to determine the opportunity cost of an additional 100 dolls. D) The opportunity cost of an additional 100 dolls increases as more dolls are produced. Show Answer Correct Answer: D) The opportunity cost of an additional 100 dolls increases as more dolls are produced. 6. Accommodating items are those items of BOP which A) Are not determined by considerations of profit. B) Are considered by the positive or negative BOP status. C) Lead to increase or decrease in official reserves with RBI. D) All of these. Show Answer Correct Answer: D) All of these. 7. Which answer below is something that the FED does NOT do? Remember, the FED has three main fiscal tools to impact money supply. A) Buy/sell bonds. B) Increase/decrease discount rate. C) Increase/decrease income tax rates. D) Increase/decrease reserve requirement. Show Answer Correct Answer: C) Increase/decrease income tax rates. 8. It is the total market value of all the final goods and services in a given period of time by the country's citizens. A) Gross National Product. B) Gross Domestic Product. C) Consumer Price Index. D) Market Basket of Goods. Show Answer Correct Answer: A) Gross National Product. 9. TRUE or FALSE:Consumer durable goods are included in the value of euro area stock of manufactured capital. A) TRUE. B) FALSE. Show Answer Correct Answer: B) FALSE. 10. A change in which of the following will cause the aggregate demand curve to shift? A) Energy prices. B) Productivity rates. C) Consumer wealth. D) Prices of inputs. Show Answer Correct Answer: C) Consumer wealth. 11. What is being out of the labor force? A) Currently working for pay. B) Out of work and not actively looking for a job. C) Out of work and currently looking for a job. D) The number of employed and unemployed. Show Answer Correct Answer: B) Out of work and not actively looking for a job. 12. The multiplier effect is based on the fact that ..... by one person is (are) ..... to another A) Income; income. B) Expenditures; expenditures. C) Expenditures; income. D) Income; expenditures. Show Answer Correct Answer: C) Expenditures; income. 13. When making a decision, the next best alternative is called A) The production possibilities. B) The opportunity cost. C) Scarcity. D) The absolute advantage. E) Efficiency. Show Answer Correct Answer: B) The opportunity cost. 14. What does Government Spending refer to in macroeconomics? A) Spending by individuals and households. B) Spending by businesses on investments. C) Spending by the government on public goods and services. D) Spending by foreign countries on domestic goods. Show Answer Correct Answer: C) Spending by the government on public goods and services. 15. Which of the following government policies will help the economy to recover from inflation A) The selling of government securities in the open market. B) The purchase of government securities in the open market. C) A decrease in the cash reserves requirements. D) A decrease in the discount rate. Show Answer Correct Answer: A) The selling of government securities in the open market. 16. " prices rise when the quantity of money rise rapidly" Is an example of a A) Negative economic statement. B) Positive economic statement. C) Normative economic statement. D) Statement that contradicts one of the basic principles of economics. E) Economic fallacy. Show Answer Correct Answer: B) Positive economic statement. 17. At what point in the business cycle is GDP the highest? A) Peak. B) Expansion. C) Recovery. D) Trough. Show Answer Correct Answer: A) Peak. 18. At the existing price, the quantity demanded exceeds the quantity supplied; also called excess demand A) Shortage. B) Surplus. C) Substitute. D) Shift in supply. Show Answer Correct Answer: A) Shortage. 19. Unemployment that results from search time required to find new employment after leaving a previous position is known as? A) Cyclical. B) Seasonal. C) Frictional. D) Structural. Show Answer Correct Answer: C) Frictional. 20. Too much money printed can lead to A) Unemployment. B) Deflation. C) Increase output. D) Inflation. Show Answer Correct Answer: D) Inflation. ← 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