This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Macroeconomics – Quiz 33 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 33 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of these supply-side policies is not aimed primarily at increasing competition in an economy? A) Industrial policy. B) Deregulation. C) Privatization. D) Trade liberalization. Show Answer Correct Answer: A) Industrial policy. 2. What are the major risks for bond investors? A) Default. B) Inflation. C) Interest Rate Changes. D) Inflation and Interest Rate Changes. Show Answer Correct Answer: D) Inflation and Interest Rate Changes. 3. Which of the following best describes aggregate supply? A) A schedule indicating the level of real output that will be produced at each possible price level. B) A schedule indicating the level of real output that will be purchased at each possible price level. C) A schedule showing the trade-off between inflation and unemployment. D) A schedule showing the relationship between inputs and outputs. Show Answer Correct Answer: A) A schedule indicating the level of real output that will be produced at each possible price level. 4. Money that is given for a specific purpose with the aggreement that it will be paid back. A) Commodity Money. B) Specie Money. C) Fiat Money. D) Loan. E) Interest. Show Answer Correct Answer: D) Loan. 5. A deficit is when government spending is greater than revenue for a span of how long? A) One month. B) One week. C) One day. D) One year. Show Answer Correct Answer: D) One year. 6. Which of the following people would count as unemployed? A) Robin was laid off by the local tv station, but she's had 4 interviews as a news broadcaster for Channel 5 news. B) Ted used to be an architect, but now he teaches at a university. C) Barney works for a big corporation in a big city. D) Marshall just graduated law school and now he's working for a major corporation. Show Answer Correct Answer: A) Robin was laid off by the local tv station, but she's had 4 interviews as a news broadcaster for Channel 5 news. 7. If the real interest rate is 1% and the nominal interest rate is 4%, the expected rate of inflation is A) 0%. B) 1%. C) 2%. D) 3%. E) 4%. Show Answer Correct Answer: D) 3%. 8. A bond tends to pay a high interest rate if it is ....., A) Issued by the federal government rather than a corporation. B) Issued by a corporation of dubious credit quality. C) A short-term bond rather than a long-term bond. D) A municipal bond exempt from federal taxation. Show Answer Correct Answer: B) Issued by a corporation of dubious credit quality. 9. What societal problem did Karl Marx attempt to address in his manifesto? Choose the best answer. A) The exploitation of the poor by the rich. B) The low quality of good produced at large factories. C) The fact that poor people were not allowed to vote. D) Unfair laws that allow poor people to be sent to prison. Show Answer Correct Answer: A) The exploitation of the poor by the rich. 10. Profits from a UK football club, paid back to a wealthy foreign owner, would count as A) A credit as foreign direct investment on the capital/financial account. B) An outflow investment incomes on the current account. C) Import expenditure on the balance of trade of services. D) Current transfers. Show Answer Correct Answer: B) An outflow investment incomes on the current account. 11. Which of the following statements is TRUE according to the Simple Quantity Theory of Money? A) An increase in the money supply will cause inflation. B) An decrease in the money supply will cause inflation. C) An increase in the quantity of goods purchased will cause inflation. D) Inflation is only caused by changes in the weather. Show Answer Correct Answer: A) An increase in the money supply will cause inflation. 12. In the context of SRAS, which factor is considered fixed in the short run? A) Technology. B) Aggregate Demand. C) Exports. D) Imports. Show Answer Correct Answer: A) Technology. 13. Negative supply shock A) Shifts SRAS up. B) SRAS down. C) LRAS right. D) LRAS left. Show Answer Correct Answer: A) Shifts SRAS up. 14. What is represented on the "X" axis on the AD/AS Model? A) Price level. B) Price. C) Real GDP. D) Nominal GDP. Show Answer Correct Answer: C) Real GDP. 15. If the federal government has a budget deficit and enacts contractionary fiscal policy, then A) The demand for loans shifts to the left. B) The demand for loans shifts to the right. C) The supply of loanable funds shifts to the right. D) The supply of loanable funds shifts to the left. Show Answer Correct Answer: A) The demand for loans shifts to the left. 16. Net exports is a measure of A) Imports-exports. B) Exports-imports. C) Imports + exports. D) Exports + imports. Show Answer Correct Answer: B) Exports-imports. 17. In order for a type of money to be used, it must be ..... wherever you want to use it. A) Accepted as Payment. B) Portable. C) Durable. D) Divisible. Show Answer Correct Answer: A) Accepted as Payment. 18. ..... vary depending on a company's production volume (ingredients/transportation, etc) A) Variable cost. B) Fixed costs. C) Producer surplus. D) Economic utility. Show Answer Correct Answer: A) Variable cost. 19. How will it affect the economy if the Federal Reserve increases the Overnight rate (most call it the discount rate)? A) It will speed up the economy. B) It will slow down the economy. C) Nothing will happen. D) Banks will get mad. Show Answer Correct Answer: B) It will slow down the economy. 20. Perfect competition is a ..... market. A) Comprehensive. B) Competitive. C) Complex. D) Conservative. Show Answer Correct Answer: B) Competitive. ← 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