This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Macroeconomics – Quiz 255 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 255 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Cutting or increasing taxes is an example of ..... A) Monetary policy. B) Fiscal policy. C) F. D) None of above. Show Answer Correct Answer: B) Fiscal policy. 2. Unlike ....., which defines production based on the geographical location of production, the ..... allocates production based on location of ownership. A) Macroeconomics-Microeconomics. B) GDP-GNP. C) Microeconomics-Macroeconomics. D) GNP-GDP. Show Answer Correct Answer: B) GDP-GNP. 3. The law of one price applied to the international marketplace is called ..... A) Arbitrageurs. B) Big mac index. C) Purchasing-power parity. D) Semua salah. Show Answer Correct Answer: C) Purchasing-power parity. 4. This is a paper component of the money supply, today consisting of Federal Reserve notes. A) Coins. B) Currency. C) Both coins and currency. D) Debit cards. Show Answer Correct Answer: B) Currency. 5. The act of buyers and sellers freely & willingly engaging in market transactions A) Opportunity Cost. B) Scarcity. C) Specialization. D) Voluntary Exchange. Show Answer Correct Answer: D) Voluntary Exchange. 6. An Aggregate Production Function exhibits ..... when, holding the amount of human capital per worker and the state of technology fixed, each successive increase in the amount of physical capital per worker leads to a smaller increase in productivity. A) Diminishing Returns to Physical Capital. B) Increasing Returns to Physical Capital. C) Diminishing Returns to Human Capital. D) Increasing Returns to Human Capital. Show Answer Correct Answer: A) Diminishing Returns to Physical Capital. 7. National debt from internal sources are loans obtained from A) International monetary funds. B) Loans approved for overseas projects by the world bank. C) Sale of government securities in the international financial markets. D) Investment certificates and government securities to the employees. Show Answer Correct Answer: D) Investment certificates and government securities to the employees. 8. The three methods for calculating GDP are ..... A) The spending approach, the investment approach, and the product approach. B) The spending approach, the imputation approach, and the investment approach. C) The spending approach, the income approach, and the investment approach. D) The spending approach, the imputation approach, and the product approach. E) The spending approach, the income approach, and the product approach. Show Answer Correct Answer: E) The spending approach, the income approach, and the product approach. 9. In a small open economy, a decrease in its exchange rate will ..... net exports and shift the ..... curve. A) Increase; IS. B) Decrease; IS. C) Increase; LM. D) Decrease; LM. Show Answer Correct Answer: A) Increase; IS. 10. According to the liquidity preference model, if the interest rate rises above its equilibrium value, the quantity demanded of nonmonetary interest-bearing financial assets ..... and this leads to a ..... in the interest rate. A) Increases; fall. B) Decreases; rise. C) Decreases; fall. D) Increases; rise. E) Remains constant; fall. Show Answer Correct Answer: A) Increases; fall. 11. If the Federal Government spends more money than it collects in tax revenue during a given year, than the Federal Government has a ..... ? ..... for that year? A) Budget surplus. B) National debt. C) Deficit. D) None of above. Show Answer Correct Answer: C) Deficit. 12. ..... is the total value of all final goods and services produced in the economy during a given year. A) Gross Domestic Product. B) Value-Added Number. C) Economic Success Value. D) Consumer Spending. Show Answer Correct Answer: A) Gross Domestic Product. 13. The aggregate production function is used to describe which of the following relationships? A) The tradeoff between the production of capital goods and consumption goods. B) The relationship between output supplied and the price level. C) The relationship between unemployment and inflation in the long run. D) The tradeoff between unemployment and inflation in the short run. E) The relationship between output and inputs (labor, capital, and technology). Show Answer Correct Answer: E) The relationship between output and inputs (labor, capital, and technology). 14. All of these are components of the expenditure approach to GDP EXCEPT A) Consumption. B) Investment. C) Taxes. D) Government Spending. Show Answer Correct Answer: C) Taxes. 15. In the Keynesian model, an expansionary monetary policy will lead to A) Lower real interest rates and more investment. B) Lower real interest rates and lower prices. C) Higher real interest rates and lower prices. D) Higher real interest rates and higher real income. E) Higher nominal interest rates and more investment. Show Answer Correct Answer: A) Lower real interest rates and more investment. 16. Circular flow of income depends on ..... A) Govt. Intervention. B) Production of goods and services. C) Interdependence of producer and household sector. D) Invention of money. Show Answer Correct Answer: C) Interdependence of producer and household sector. 17. The following are the indices that are the basis for determining the size of the price level according to macroeconomics, except..... A) Deflator PDB. B) Consumer price index. C) The Inflation Rate. D) CPI. Show Answer Correct Answer: C) The Inflation Rate. 18. Which graph shows tradeoffs amid conditions of scarce resources? A) Production Possibilities. B) Money Market. C) Loanable Funds. D) Phillips Curve. Show Answer Correct Answer: A) Production Possibilities. 19. What is seignorage? A) The right of the US government to tax its citizens. B) The right of the US government to tax businesses. C) The right of the US government to print money. D) The right of the US government to less treasury bonds. Show Answer Correct Answer: C) The right of the US government to print money. 20. Which group of economic indicators suggests an economy is in a trough? A) Growth 4.5%, Inflation 3.6%, Unemployment 4.8%. B) Growth 2.1%, Inflation 1.7%, Unemployment 6.2%. C) Growth 3%, Inflation 2.8%, Unemployment 5.1%. D) Growth 1.8%, Inflation 2.2%, Unemployment 5.6%. Show Answer Correct Answer: B) Growth 2.1%, Inflation 1.7%, Unemployment 6.2%. ← 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