This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Macroeconomics – Quiz 3 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 3 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What is the definition of inflation? A) An increase in the general level of prices for goods and services. B) A decrease in the general level of prices for goods and services. C) An increase in the supply of money. D) A decrease in the supply of money. Show Answer Correct Answer: A) An increase in the general level of prices for goods and services. 2. Assume the velocity of money and real gross domestic product are constant. According to the quantity theory of money, an increase in the money supply will result in which of the following? A) A decrease in the price level. B) A decrease in the money multiplier. C) A decrease in nominal gross domestic product. D) An increase in the price level. E) An increase in the money multiplier. Show Answer Correct Answer: D) An increase in the price level. 3. Price A) A graph that describes the maximum amount of one good that can be produced for every possible level of production of the other good. B) Producing in a way that best uses all of the economy's resources. C) All human-made goods that are used to produce other goods and services; tools and buildings. D) X-Axis. Show Answer Correct Answer: D) X-Axis. 4. The sum total of the value of all the goods and services produced in a nation A) Cash. B) Revenue. C) Gross domestic product (GDP). D) Exports. Show Answer Correct Answer: C) Gross domestic product (GDP). 5. How do policymakers usually respond to a crisis such as the Global Financial Crisis of 2008 and the COVID-19 crisis of 2020-2021 so that the economy can recover from it? A) Increase Money Supply through reduction in interest rate. B) Reduce Money Supply through increase in interest rate. C) Increase Money Supply through increase in interest rate. D) Reduce Money Supply through reduction in interest rate. Show Answer Correct Answer: A) Increase Money Supply through reduction in interest rate. 6. Which of this is NOT a type of economic system? A) Free Market economy. B) Planned economy. C) Mixed Economy. D) Foreign economy. Show Answer Correct Answer: D) Foreign economy. 7. All other things being equal, an increase in the exchange rate of the pound against other currencies due to a rise in interest rates is most likely to cause an increase in the UK's A) Surplus on the current account of the balance of payments. B) Price of imported goods. C) Level of unemployment. D) Rate of economic growth. Show Answer Correct Answer: C) Level of unemployment. 8. ..... are spending promises made by governments that are effectively a debt despite the fact that they are not included in the usual debt statistics. A) Implicit Liabilities. B) Liabilities. C) Risk. D) Government Debt. Show Answer Correct Answer: A) Implicit Liabilities. 9. Reduce birth rate. A) Positive check. B) Preventive check. C) Birth control. D) Population control. Show Answer Correct Answer: B) Preventive check. 10. Classification of goods depends upon the ..... A) Consumption of goods. B) Production of goods. C) First-use of goods. D) End-use of goods. Show Answer Correct Answer: D) End-use of goods. 11. What are some examples of human resources? A) Trees, cows, oil, water, rocks, minerals. B) Truck, building, container, computer. C) Doctor, Engineer, Teacher, Worker. D) Starting a business for profit. Show Answer Correct Answer: C) Doctor, Engineer, Teacher, Worker. 12. How do mutual funds make money for their investors? A) Capital Appreciation and Dividends. B) Dividends only. Show Answer Correct Answer: B) Dividends only. 13. Which of the following is NOT a source of revenue for state and local governments? A) Income taxes. B) Taxes on exports. C) Property taxes. D) Court fines. Show Answer Correct Answer: B) Taxes on exports. 14. Which of the following would be considered unemployed? A) A recent college graduate looking for a job. B) A stay-at-home parent. C) A 14-year-old student who babysits for extra cash. D) A retired grandmother. Show Answer Correct Answer: A) A recent college graduate looking for a job. 15. MPK-$\delta$ A) Economy operating with less capital than golden rule, should increase s. B) Economy operating with more capital than golden rule, should increase s. C) Economy operating with less capital than golden rule, should decrease s. D) Economy operating with more capital than golden rule, should decrease s. Show Answer Correct Answer: D) Economy operating with more capital than golden rule, should decrease s. 16. Which would most likely occur during a period of recession? A) Real gross domestic output falls. B) Unemployment rate falls. C) Production increase. D) Personal income increases. Show Answer Correct Answer: A) Real gross domestic output falls. 17. How does the central bank use the reserve requirement as a tool of monetary policy? A) By increasing the reserve requirement to decrease the money supply. B) By decreasing the reserve requirement to increase the money supply. C) By increasing the reserve requirement to increase the money supply. D) By decreasing the reserve requirement to decrease the money supply. Show Answer Correct Answer: A) By increasing the reserve requirement to decrease the money supply. 18. Who among the following would be considered as unemployed? A) A college student of legal age to work but who is still in school full time. B) An entrepreneur in the process of starting a new business. C) A secretary who was laid-off from work & is looking at job ads. D) A housewife taking care of three children. Show Answer Correct Answer: C) A secretary who was laid-off from work & is looking at job ads. 19. Forests are examples of ..... A) Land. B) Labor. C) Entrepreneurs. D) Capital. Show Answer Correct Answer: A) Land. 20. Factor services rendered by the households to the firms lead to: A) Real flow. B) Services flow. C) Money flow. D) Both (a) and (c). Show Answer Correct Answer: A) Real flow. ← PreviousNext →Related QuizzesEconomics QuizzesMacroeconomics Quiz 1Macroeconomics Quiz 2Macroeconomics Quiz 4Macroeconomics Quiz 5Macroeconomics Quiz 6Macroeconomics Quiz 7Macroeconomics Quiz 8Macroeconomics Quiz 9Macroeconomics Quiz 10 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books