This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Macroeconomics – Quiz 260 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 260 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Consumption in the economy depends on all these factors EXCEPT. A) Corporate Taxes. B) Consumer Confidence. C) Income Tax. D) Interest Rates. Show Answer Correct Answer: A) Corporate Taxes. 2. Explain the concept of GDP (Gross Domestic Product). A) Net Domestic Product. B) Gross National Income. C) Gross National Product. D) Gross Domestic Product. Show Answer Correct Answer: D) Gross Domestic Product. 3. What can cause a production possibilities curve to move to the right? A) Thousands of people move out of the country. B) A drought destroys many crops. C) New technology. D) The population is growing increasingly old. Show Answer Correct Answer: C) New technology. 4. How would Eurostat classify a 25-year old individual attending graduate school full time and not working any hours at a paid job by choice? A) Underemployed. B) Not in the labor force. C) A discouraged worker. D) Unemployed. E) Employed. Show Answer Correct Answer: B) Not in the labor force. 5. National income is..... A) Income is calculated according to the amount of remuneration received by the community as owners of production factors. B) National income that does not take into account depreciation. C) The total value of products in the form of goods and services produced by production units within the territorial boundaries of a country (domestic) during one year. D) The value of products in the form of goods and services produced by residents of a country (national) during one year. E) The amount of income received by all family households in a country from the supply of factors of production in one period, usually one year. Show Answer Correct Answer: E) The amount of income received by all family households in a country from the supply of factors of production in one period, usually one year. 6. Public sector net debt should not exceed 40% of GDP A) The golden rule (Gordon Brown 1997). B) The normal times rule (George Osborne 2015). C) The sustainable investment rule (EU). D) The arbitrary household budget fallacy rule (Post-Keynesians). Show Answer Correct Answer: C) The sustainable investment rule (EU). 7. Which of the following is not an objective of economic policy? A) Economic growth. B) Full employment. C) Price stability. D) Political instability. Show Answer Correct Answer: D) Political instability. 8. Which argument is typically associated with classical economists? A) A market economy is self-correcting and thus will not remain in a recession indefinitely. B) A market economy has stable prices and thus is usually free from inflation. C) A market economy requires a strong government to ensure the market meets the needs of the people. D) A market economy needs only moderate assistance from the government to avoid an extended recession. E) A market economy eventually results in monopolies in both the input and output markets. Show Answer Correct Answer: A) A market economy is self-correcting and thus will not remain in a recession indefinitely. 9. Is the price (cost of money) that borrowers pay to borrow money. A) Bank panic. B) Interest rate. C) Reserve requirement. D) Check clearing. Show Answer Correct Answer: B) Interest rate. 10. An economy's maximum sustained output in the long run (long run aggregate supply) is known as its A) Total Output. B) Resource Output. C) Potential Output. D) Market Output. Show Answer Correct Answer: A) Total Output. 11. The microeconomic concept of 'quantity' can be said to have the macroeconomic equivalent of ..... A) GDP. B) Aggregate demand. C) Economic growth. D) Recession. Show Answer Correct Answer: A) GDP. 12. Use information in the following table to answer questions #12-#14. Production Possibilities Alternatives Product A B C D E F Tanks 0 1 2 3 4 5 Autos 1000 950 850 650 350 0 In moving from alternative C to D, the opportunity cost of the additional tank is A) 50 autos. B) 100 autos. C) 200 autos. D) 300 autos. Show Answer Correct Answer: C) 200 autos. 13. The exchange rate in the gold standard (dinar) is relatively stable..... A) Correct. B) Salah. Show Answer Correct Answer: A) Correct. 14. All of the following might reasonably be expected to shift the demand curve for beef to a new position except A) A decrease in the price of beef. B) A change in people's tastes with respect to beef. C) An increase in the money incomes of beef consumers. D) Expectations that beef prices will fall in the future. Show Answer Correct Answer: A) A decrease in the price of beef. 15. Point "F" represents which phase of the business cycle? A) Peak. B) Trough. C) Contraction. D) Expansion. E) Recovery. Show Answer Correct Answer: B) Trough. 16. Which of the following changes would cause a balanced budget to move to a budget surplus? A) An increase in transfer payments. B) A decrease in transfer payments. C) An increase in government spending. D) A decrease in tax revenue. E) A decrease in national income. Show Answer Correct Answer: B) A decrease in transfer payments. 17. Which of the following will happen if the actual inflation rate is greater than the expected inflation rate? A) Lenders of fixed interest rate loans will be better off. B) Lenders of variable interest rate loans will be worse off. C) Borrowers of fixed interest rate loans will be worse off. D) Borrowers of fixed interest rate loans will be better off. E) Borrowers of variable interest rate loans will be better off. Show Answer Correct Answer: D) Borrowers of fixed interest rate loans will be better off. 18. A Japanese car company makes a new sedan in its Sriperumbudur plant, Chennai. Which country's GDP is this added to? A) India. B) US. C) Japan. D) Both India and Japan. Show Answer Correct Answer: A) India. 19. An examination of federal (national) tax policy for businesses is an example of which field? A) Microeconomics. B) Macroeconomics. Show Answer Correct Answer: B) Macroeconomics. 20. What is the Federal Reserve's primary goal? A) To keep inflation at a low and steady rate. B) To have full employment. C) Economic growth. D) Economic Freedom. Show Answer Correct Answer: A) To keep inflation at a low and steady rate. ← 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