This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Macroeconomics – Quiz 34 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 34 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. ..... are interest rates on financial assets that mature a number of years in the future. A) Long-Term Interest Rates. B) Short-Term Interest Rates. C) Mid-Term Interest Rates. D) None of above. Show Answer Correct Answer: A) Long-Term Interest Rates. 2. What are the goals of fiscal policy? A) Promote economic growth, stabilize the economy, achieve full employment, control inflation, and maintain a sustainable fiscal position. B) Promote economic growth, stabilize the economy, achieve full employment, control deflation, and maintain a sustainable fiscal position. C) Decrease government spending, increase taxes, and reduce public debt. D) Increase government spending, reduce taxes, and increase public debt. Show Answer Correct Answer: A) Promote economic growth, stabilize the economy, achieve full employment, control inflation, and maintain a sustainable fiscal position. 3. According to the concept of comparative advantage, which of the following is true when countries specialize and trade? A) Each country obtains an absolute advantage. B) Total world output increases. C) The production possibilities curve for both countries shifts inward. D) Prices fall in both countries. E) Deadweight loss is created. Show Answer Correct Answer: B) Total world output increases. 4. The Nation of Nardrupia has a very high GDP. If that is the case, which of the following concerning life in the country is true? A) People have a great standard of living. B) Everyone in the country is wealthy. C) The country has a market economy. D) A high GDP tells you nothing about life in the country. Show Answer Correct Answer: D) A high GDP tells you nothing about life in the country. 5. A store can be in both the Resource Market and the Product Market. A) True. B) False. Show Answer Correct Answer: A) True. 6. Moderate, Galloping, Hyperinflation and Deflation are ..... A) Prices Index. B) Types of Inflation. C) Types of Unemployement indicators. D) Public Policies to increase the economic activities. Show Answer Correct Answer: B) Types of Inflation. 7. Is a bond issued by the Federal government. A) Bank panic. B) Interest rate. C) Reserve requirement. D) Treasury bills. Show Answer Correct Answer: D) Treasury bills. 8. The rate the Fed charges banks for a loan A) Discount rate. B) Federal fund rate. C) Reserve ratio. D) Prime rate. Show Answer Correct Answer: A) Discount rate. 9. When governments run budget deficits, how do they make up the differences between tax revenue and spending? A) Asking for foreign aid. B) Borrowing money, increasing taxes, or reducing spending in other areas. C) Selling government assets. D) Printing more money . Show Answer Correct Answer: B) Borrowing money, increasing taxes, or reducing spending in other areas. 10. ..... GDP uses constant base-year prices to value the economy's production. A) Nominal. B) Real. Show Answer Correct Answer: B) Real. 11. Which type of economic system bases its decisions on custom? A) Market Economy. B) Mixed Economy. C) Command Economy. D) Traditional Economy. Show Answer Correct Answer: D) Traditional Economy. 12. Tight money policy is used to ..... A) Fight recession. B) Stop inflation. Show Answer Correct Answer: B) Stop inflation. 13. Which of the following indicators is included in Vietnam's GDP? A) Hoang Anh Gia Lai Group invests in planting rubber trees in Laos. B) The government spends money on natural disaster relief. C) Coca-Cola built a factory in Binh Duong. D) EuroAuto company in Vietnam imported BMW cars worth 100, 000 USD. Show Answer Correct Answer: C) Coca-Cola built a factory in Binh Duong. 14. Which is not an effect of Deflation? A) Increased spending on goods and services. B) Reduced profit and cash flow for companies. C) Oversupply of goods and services. D) Lower price for goods and services. Show Answer Correct Answer: A) Increased spending on goods and services. 15. Suppose that the marginal propensity to consume is 0.9. What is the tax multiplier for a lump sum tax in this case? A) -0.1. B) -9. C) -10. D) -90. E) -100. Show Answer Correct Answer: B) -9. 16. The book General theory of Employment, Interest and Money was written by A) J M Keynes. B) Ricardo. C) Samuelson. D) Adam Smith. Show Answer Correct Answer: A) J M Keynes. 17. The LRPC is vertical because A) There is no tradeoff between inflation and unemployment. B) There is no tradeoff between price level and GDP. C) There is no tradeoff between price and quantity demanded. D) There is no tradeoff between two production options. Show Answer Correct Answer: A) There is no tradeoff between inflation and unemployment. 18. The federal reserve oversees how many district banks? A) 12. B) 13. C) 24. D) 25. Show Answer Correct Answer: A) 12. 19. Which of the following does not related to an expanding economy? A) Population growth. B) Technological progress. C) Increase in income tax rate. D) Increase in savings. Show Answer Correct Answer: C) Increase in income tax rate. 20. An economic system in which major economic decisions are made based on the free choices of consumers and producers, with little government involvement, is: A) Market Economy. B) Traditional Economy. C) Command Economy. D) None of the Above. Show Answer Correct Answer: A) Market Economy. ← 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