This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Macroeconomics – Quiz 268 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 268 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The setting of interest rates is an example of what? A) Fiscal policy. B) Monetary policy. C) Treason. D) Globalization. Show Answer Correct Answer: B) Monetary policy. 2. What layer of the earth are made of silicon, oxygen and aluminium A) Crust. B) Inner core. C) Outer core. D) Mantle. Show Answer Correct Answer: A) Crust. 3. If the Production possibilities curve (PPC) is concave from the origin (bowed out), then economists say that A) Resources are scarce in the economy. B) Resources are not equally suited for the production of both goods. C) Economic growth is occurring in the economy. D) Resources are being inefficiently used in the economy. E) Resources are equally suited for the production of either good. Show Answer Correct Answer: B) Resources are not equally suited for the production of both goods. 4. Reserve requirement A) Interest rate that the Fed charges on its loans to member banks. B) The percent of deposits that banks have to have set aside in cash at any given time. C) Committee that makes decisions that affect the economy as a whole by manipulating the money supply. D) Manipulation of the money supply in attempts to keep the economy stable; implemented by the Federal Reserve. Show Answer Correct Answer: B) The percent of deposits that banks have to have set aside in cash at any given time. 5. Reviews stock prices from 30 companies to determine the health of the stock market A) Dow Jones. B) S & P 500. C) New York Stock Exchange. D) NASDAQ. Show Answer Correct Answer: A) Dow Jones. 6. Greater protection of private property rights affect on steady state level and steady state growth of total output per person A) Increases s.s level, s.s growth rate unchanged. B) Decreases s.s level, s.s growth rate unchanged. C) Increases s.s level, s.s growth rate increases. D) Increases s.s level, s.s growth rate decreases. Show Answer Correct Answer: C) Increases s.s level, s.s growth rate increases. 7. Which tool of monetary policy matches this definition:Banks must keep percentage of deposits on hand A) Reserve Requirement. B) Interest on Required and Excess Reserves. C) Discount Rate. D) Open Market Operations. Show Answer Correct Answer: A) Reserve Requirement. 8. An increase of prices lead to A) A change along the AD curve to the right. B) An outward shift of the AD curve. C) An inward shift of the AD curve. D) A change along the AD curve to the left. Show Answer Correct Answer: D) A change along the AD curve to the left. 9. The Policy That Regulates Interest Rates Called? A) Monetary Policy. B) Taxes Policy. C) Fiscal Policy. D) Interest Rates Policy. Show Answer Correct Answer: A) Monetary Policy. 10. When you buy and sell items from a store, you are using money as a ..... A) Medium of exchange. B) Store of value. C) Unit of value. D) Consumer price index. Show Answer Correct Answer: A) Medium of exchange. 11. Which of the following is NOT studied under microeconomics? A) Consumer behavior and behavior. B) Habits and actions of producers. C) Buyer and seller interaction. D) Behavior and behavior of the government. Show Answer Correct Answer: D) Behavior and behavior of the government. 12. Which of the following best defines unemployment rate? A) The rate of those able to work and actively seeking work, but unable to find employment. B) The rate of those being able to work, but choosing not to. C) The total number of people who do not work. D) None of above. Show Answer Correct Answer: A) The rate of those able to work and actively seeking work, but unable to find employment. 13. What Is The Point Of Classical Economics? A) The independence of the central bank. B) The government has an important role in the running of the economy. C) The importance of the law of supply and demand. D) The private sector has an unlimited role. Show Answer Correct Answer: C) The importance of the law of supply and demand. 14. The common relationship that a higher price to a lower quantity demanded of a certain good or service and a lower price leads to a higher quantity demanded, while all other variables are held constant A) Law of demand. B) Price ceiling. C) Law of supply. D) Price floor. Show Answer Correct Answer: A) Law of demand. 15. Predicting how higher US inflation will affect the international value of the dollar A) Macroeconomics. B) Microeconomic. Show Answer Correct Answer: A) Macroeconomics. 16. If the Federal Reserve wanted to stimulate the economy (make it grow), they might A) Sell Treasury bonds. B) Buy Treasury bonds. C) Spend more money. D) Spend less money. Show Answer Correct Answer: B) Buy Treasury bonds. 17. A firm intends to expand its scale of production by investing in additional factory space and machinery. What immediate impact will this decision have on its costs? A) Total variable costs will rise. B) Total fixed costs will rise. C) Total cost will be unchanged. D) Average costs will rise. Show Answer Correct Answer: B) Total fixed costs will rise. 18. A rightward shift in the short-run aggregate supply curve will occur when A) Exports exceed imports. B) The money supply increases. C) The prices of imported raw materials increase. D) The stock of physical capital increases. E) Unions have negotiated a wage increase for their members. Show Answer Correct Answer: D) The stock of physical capital increases. 19. The expenditures approach to calculating GDP uses the following equation: A) C + N + X = Y. B) C + N + X = GDP. C) C + I + G + NX = Y. D) C + I + G + X = Y. Show Answer Correct Answer: C) C + I + G + NX = Y. 20. What will you pay back if you borrow $ A) Principal only. B) Interest only. C) Interest and finance charges. D) Principal + interest. Show Answer Correct Answer: D) Principal + interest. ← 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