This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Macroeconomics – Quiz 265 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 265 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Currency that is based on common agreement and is not backed by a commodity or specie, for instance, paper dollars in the United States. A) Commodity Money. B) Specie Money. C) Fiat Money. D) Loan. E) Interest. Show Answer Correct Answer: C) Fiat Money. 2. Which of the following causes of inflation is often described as "too much money chasing too few goods" ? A) Demand-pull inflation. B) Cost-push inflation. C) Demand-push inflation. D) Cost-pull inflation. Show Answer Correct Answer: A) Demand-pull inflation. 3. Which of the following transactions would represent an addition to a nation's current gross domestic product? A) Ms. Smith purchases a share of stock in an automobile company. B) A retailer increases her stock of imported shoes. C) The government increases its domestic purchases of food for use by the military. D) A corporation sells shoes from last year's inventory. E) A mother sells her car to her daughter. Show Answer Correct Answer: C) The government increases its domestic purchases of food for use by the military. 4. Which of the following would be the FIRST change to occur when a central bank conducts open market purchases of bonds? A) Aggregate demand increases. B) Bank reserves increase. C) The money supply increases. D) The monetary supply decreases. E) The interest rate decreases. Show Answer Correct Answer: B) Bank reserves increase. 5. If consumption function is C = 250 + 0.75Y and investment is I = RM450, find the equilibrium income in this two sector economy. A) RM2800. B) RM3600. C) RM7200. D) RM9000. Show Answer Correct Answer: A) RM2800. 6. The economic choices made by individuals, businesses, and governments and the interactions of those choices answer which three major economic questions? A) What?, How?, and Why?. B) What?, How?, and For Whom?. C) Why?, How much?, and At what price?. D) At what price?, What?, and Why?. Show Answer Correct Answer: B) What?, How?, and For Whom?. 7. If general prices go up 10, 000% in a year, this would be an example of A) Deflation. B) Hyperinflation. C) Inflation. D) Supply Curve. Show Answer Correct Answer: B) Hyperinflation. 8. Mike is a fifty-five year old father of two who has been working part-time while raising his kids. He has been looking for full time work without success for over a year. A) Unemployed. B) Employed. C) Labor Force. D) Not in the labor force. Show Answer Correct Answer: B) Employed. 9. Which of the following measurement indicate the national income distribution? A) GDP. B) GNP. C) Per Capita Income. D) NNP. Show Answer Correct Answer: C) Per Capita Income. 10. What is the name of the "central bank" of the United States? A) Bank of the U.S. B) The Federal Reserve. C) U.S. Congressional Bank. D) The Federal Bank of America. Show Answer Correct Answer: B) The Federal Reserve. 11. Is how much money each bank is required by the Fed to keep on hand. A) Money supply. B) Interest rate. C) Reserve requirement. D) Check clearing. Show Answer Correct Answer: C) Reserve requirement. 12. Laissez-faire market economies have heavy government regulation. A) True. B) False. Show Answer Correct Answer: B) False. 13. ..... are taxes on imports. A) Tariffs. B) Import Quota. C) Protectionism. D) Foreign Exchange Controls. Show Answer Correct Answer: A) Tariffs. 14. A rise in the general price level of final goods and services A) Stagflation. B) Aggregate Supply. C) Inflation. D) Aggregate Demand. Show Answer Correct Answer: C) Inflation. 15. GDP at FC = A) GDP at MP-Net indirect taxes. B) GDP at MP + Net indirect taxes. C) GDP at MP + Subsidies. D) GDP at MP-Indirect taxes. Show Answer Correct Answer: A) GDP at MP-Net indirect taxes. 16. Which of the following causes movement along the short run Phillips curve? A) Any changes to aggregate supply. B) Any changes to aggregate demand. C) Any changes in frictional or structural unemployment. D) All of the above. Show Answer Correct Answer: B) Any changes to aggregate demand. 17. The natural rate of unemployment is equal to A) Frictional plus cyclical. B) Cyclical plus structural. C) Frictional plus seasonal. D) Structural plus frictional. Show Answer Correct Answer: D) Structural plus frictional. 18. How would a balanced budget amendment change the effect of automatic stabilizer programs? A) A balanced budget amendment would limit the government's ability to use deficit spending to stimulate the economy during downturns. B) A balanced budget amendment would increase the government's ability to use deficit spending to stimulate the economy during downturns. C) A balanced budget amendment would have no impact on the government's ability to use deficit spending to stimulate the economy during downturns. D) A balanced budget amendment would make automatic stabilizer programs more effective in stabilizing the economy during downturns. . Show Answer Correct Answer: A) A balanced budget amendment would limit the government's ability to use deficit spending to stimulate the economy during downturns. 19. Silicon Valley in California and Research Triangle Park in North Carolina are both evidence of what trend over the last few decades? A) The importance of the U.S. technology industry. B) The impact of downsizing in the South and West. Show Answer Correct Answer: A) The importance of the U.S. technology industry. 20. Inflation is important to cosider when revising a personal budget. 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