This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Macroeconomics – Quiz 32 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 32 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. How many Federal Reserve districts are included in the Federal Reserve System? A) 6. B) 8. C) 10. D) 12. Show Answer Correct Answer: D) 12. 2. Which of the following expenditures would be counted as investment towards the United States' gross domestic product (GDP)? A) A European airplane manufacturer builds a new assembly plant outside of Atlanta, Georgia. B) The US government spends $ 1 billion on a new interstate highway. C) Ford Motor Company builds a new factory in Mexico. D) A Wall Street investment bank purchases a large number of shares in a young Silicon Valley tech company. Show Answer Correct Answer: A) A European airplane manufacturer builds a new assembly plant outside of Atlanta, Georgia. 3. What is most likely to cause economic growth? A) A better educated workforce. B) A reduction in the right to own property. C) Decreased wages. D) Higher taxation. Show Answer Correct Answer: A) A better educated workforce. 4. When does the US government operate with a budget deficit? A) When the government spends less than it generates in revenue. B) When the government spends more than it generates in revenue. C) When the United States imports more goods and services than it exports. D) When the United States exports more goods and services than it imports. Show Answer Correct Answer: B) When the government spends more than it generates in revenue. 5. Who pays interest when you deposit money in the bank? A) The depositor. B) The bank. Show Answer Correct Answer: B) The bank. 6. The level of wealth achieved by a society A) Standard of Living. B) Safety Net. C) Factors of Production. D) Intellectual Property. Show Answer Correct Answer: A) Standard of Living. 7. The study of how society manages its scare resources A) Money studies. B) Economics. C) Finance. D) GDP. Show Answer Correct Answer: B) Economics. 8. Promote economic growth2. Limit unemployment3. Keep prices stable (limit inflation) A) Major Economic Goals for Every Country. B) Factors of productivity. C) Components of GDP. D) Income approach adds up. Show Answer Correct Answer: A) Major Economic Goals for Every Country. 9. Which of the following could explain the shift shown in the graph below? A) A decrease in government spending. B) An increase in investor confidence. C) A lowering of the ECB's target inflation rate. D) A beneficial supply shock. E) A lowering of people's expectations of inflation. Show Answer Correct Answer: B) An increase in investor confidence. 10. If aggregate demand and real GDP decrease and unemployment increases, what conclusion can you draw A) The economy is in expansion. B) The economy is facing a slow down. C) The economy is in recovery. D) Aggregate supply is increasing. Show Answer Correct Answer: B) The economy is facing a slow down. 11. Goods that last fewer than 3 years A) Intermediate Goods. B) Non-Durable Goods. C) Final Goods. D) Durable Goods. Show Answer Correct Answer: B) Non-Durable Goods. 12. Which government policy measure is most likely to benefit people on high income? A) Increasing housing benefit. B) Increasing unemployment benefit. C) Reducing government expenditure on higher education. D) Reducing income tax. Show Answer Correct Answer: D) Reducing income tax. 13. It shows the cycle of goods and services in an economy. A) Circular flow of goods. B) Circular flow of money. C) Circular flow of the economy. D) Circular flow of resources. Show Answer Correct Answer: C) Circular flow of the economy. 14. What does GDP stand for in economics? A) General Domestic Product. B) Gross Domestic Product. C) Government Development Plan. D) Global Demand and Production. Show Answer Correct Answer: B) Gross Domestic Product. 15. T/F:Even with full employment, a nation will likely still have frictional and structural unemployment. A) True. B) False. Show Answer Correct Answer: A) True. 16. All other things being equal, an increase in aggregate demand would result from an increase in the A) Deficit in the current account of the balance of payments. B) Household saving ratio. C) Government's budget surplus. D) Ratio of household consumption to national income. Show Answer Correct Answer: D) Ratio of household consumption to national income. 17. When consumers purchase imported products, this is: A) Subtracted from GDP. B) Double counting. C) Not a part of the GDP calculation. D) Considered domestic spending since it is spent by a domestic consumer. Show Answer Correct Answer: A) Subtracted from GDP. 18. Which of these terms is used to describe a company's ability to produce a good at a lower opportunity cost than another company? A) Trade imbalance. B) Absolute advantage. C) Non-structural barrier. D) Comparative advantage. Show Answer Correct Answer: D) Comparative advantage. 19. Gains in trade arise from A) A decrease in the input price for production. B) The knowledge and skills that workers acquire through education, training, and experience. C) Each additional unit produced means amounts of the other good (which are ever-increasing) must be given up. D) Specialization in production. Show Answer Correct Answer: D) Specialization in production. 20. Addition of spending to the income-expenditure system. A) Leakage. B) Saving. C) Injection. D) Import. Show Answer Correct Answer: C) Injection. ← 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