This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Macroeconomics – Quiz 250 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 250 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. An increase in the price of raw materials causes a ..... inflation A) Cost push. B) Profit push. C) Import push. D) Demand pull. Show Answer Correct Answer: A) Cost push. 2. Expansionary fiscal policy under fixed exchange rates A) Shifts IS* curve rightto maintain fixed exchange rate Fed increases money supply, shifting LM* curve right, raising income. B) Shifts IS* curve rightto maintain fixed exchange rate Fed decreases money supply, shifting LM* curve right, raising income. C) Shifts IS* curve leftto maintain fixed exchange rate Fed increases money supply, shifting LM* curve right, raising income. D) Shifts IS* curve leftto maintain fixed exchange rate Fed decreases money supply, shifting LM* curve right, raising income. Show Answer Correct Answer: A) Shifts IS* curve rightto maintain fixed exchange rate Fed increases money supply, shifting LM* curve right, raising income. 3. Unemployment caused by lack of skills or demand A) Structural Unemployment. B) Frictional Unemployment. C) Seasonal Unemployment. D) Discouraged Workers. Show Answer Correct Answer: A) Structural Unemployment. 4. Which of the following is studied in Macroeconomics? A) Individual income. B) Individual savings. C) Individual output. D) General price level. Show Answer Correct Answer: D) General price level. 5. The ..... between two countries' currencies is the nominal exchange rate at which a given basket of goods and services would cost the same amount in each country. A) Purchasing Power Parity. B) CPI Currency Rate. C) Nominal Exchange Rate. D) Aggregate Exchange Rate. Show Answer Correct Answer: A) Purchasing Power Parity. 6. Which of the following is a macroeconomics study? A) Price of luxury car. B) Unemployment rate in the country. C) Production methods and cost. D) Demand for smartphone. Show Answer Correct Answer: B) Unemployment rate in the country. 7. The ..... is the ratio of nominal GDP to the money supply. It is a measure of the number of times the average dollar bill is spent per year. A) Velocity of Money. B) Inertia of Money. C) Volume of Money. D) Density of Money. Show Answer Correct Answer: A) Velocity of Money. 8. Which of the following is defined as a business in which partners have an unequal share and liability in the business? A) Sole partnership. B) Limited partnership. C) General partnership. D) Franchise partnership. Show Answer Correct Answer: B) Limited partnership. 9. Which is the protectionism tools below related with Tariff? A) Imported tax. B) Minimum quantity. C) Physical control. D) Control exchange rate. Show Answer Correct Answer: A) Imported tax. 10. To stop inflation from happening, what policy could the GOVERNMENT do? A) Increase Taxes, Decrease Spending. B) Decrease Taxes, Increase Spending. C) Raise the RRR, DR, IOR. D) Lower the RRR, DR, IOR. Show Answer Correct Answer: A) Increase Taxes, Decrease Spending. 11. If the exchange rate of currency A is fixed to a unit of currency B, then a potential problem for the central bank in charge of currency A is: A) Running out of currency A. B) Running out of currency B. C) Generating excessive revenue from seigniorage. D) Ineffective fiscal policy. Show Answer Correct Answer: B) Running out of currency B. 12. The following information is related to a formula in the economy:X = Full employment + Unemployment A) Labour force. B) Total population. C) The number of people who are actively looking for a job. D) The number of people aged between 20 to 70 years old. Show Answer Correct Answer: A) Labour force. 13. What is likely to be the effect of a fall in oil prices on the global economy? A) A decrease in the rate of economic growth. B) A decrease in unemployment. C) A strengthening of cost-push inflation. D) A weakening of demand-pull inflation. Show Answer Correct Answer: B) A decrease in unemployment. 14. Leakages in the circular flow of income refer to ..... A) Exports, savings and taxes. B) Savings, taxes and imports. C) Government spending, exports and imports. D) Investment, government spending and exports. Show Answer Correct Answer: B) Savings, taxes and imports. 15. A rise in the cost of goods and services A) Inflation. B) Discount rate. C) Interest. D) Monetary policy. Show Answer Correct Answer: A) Inflation. 16. Which one of the following types of household is most likely to spend the highest proportion of its disposable income? A) High income, middle-aged with no children. B) Low income, young single parent with young children. C) Middle income, young single person with no children. D) High income, middle-aged couple with two grown-up children. Show Answer Correct Answer: B) Low income, young single parent with young children. 17. The political branches of government play a large role in setting ..... A) Fiscal Policy. B) Monetary Policy. Show Answer Correct Answer: A) Fiscal Policy. 18. Which is not a feature of Keynesian consumption function? A) Consumption is a positive function of income. B) In the short run, MPC remains constant. C) As income increases, APC will also increase. D) MPC is less than APC. Show Answer Correct Answer: C) As income increases, APC will also increase. 19. What is meant by a regressive tax? A) One designed to create a more even distribution of income. B) One which is impossible to evade. C) One which is earning less tax revenue than previously. D) One which takes a larger percentage of tax from the poor than the rich. Show Answer Correct Answer: D) One which takes a larger percentage of tax from the poor than the rich. 20. People can get more of what they want through trade than they could if they tried to be self-sufficient. A) True. B) False. Show Answer Correct Answer: A) True. ← 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