This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Macroeconomics – Quiz 36 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 36 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. ..... is the improvement in labor created by the education and knowledge of members of the workforce. A) Human Capital. B) Physical Capital. C) Labor Capital. D) Technology Capital. Show Answer Correct Answer: A) Human Capital. 2. Unemployed due to a downturn in overall economic activity. If the economy expanded again, these workers would be able to go back to work. A) Cyclical. B) Frictional. C) Structural. D) Seasonal. Show Answer Correct Answer: A) Cyclical. 3. This is a tax on an imported good. A) Customs duty. B) Gift tax. C) Estate tax. D) User fee. Show Answer Correct Answer: A) Customs duty. 4. The value a person uses when exchanging goods and services from one country for goods and services from another country can be calculated using the formula..... A) (e x P)/P*. B) P*/P. C) E/P*. D) E/(P x P*). Show Answer Correct Answer: A) (e x P)/P*. 5. Trade policy e.g tariff or quote, under floating exchange rates A) Shifts IS* curve to the rightraises exchange rateincome unchangedNX actually becomes unchanged. B) Shifts IS* curve to the rightraises exchange rateincome unchangedNX increases. C) Shifts IS* curve to the rightraises exchange rateincome unchangedNX decreases. D) Shifts IS* curve to the rightraises exchange rateraises income NX actually becomes unchanged. Show Answer Correct Answer: A) Shifts IS* curve to the rightraises exchange rateincome unchangedNX actually becomes unchanged. 6. Which of the following is the LEAST risky investment? A) Corporate bonds. B) Stocks. C) U.S. Treasury bonds. D) Mutual funds. Show Answer Correct Answer: C) U.S. Treasury bonds. 7. Which one of the following is NOT included in National Income? A) Old age pension. B) Salary. C) Wages. D) Bonus. Show Answer Correct Answer: A) Old age pension. 8. What form/type of tax is characterized by a lower tax rate for lower incomes and a higher tax rate for higher incomes? A) Progressive Tax. B) Regressive Tax. C) Proportional Tax. D) None of above. Show Answer Correct Answer: A) Progressive Tax. 9. Production possibilities curve A) Producing in a way that best uses all of the economy's resources. B) The amount of a good or service that a firm is willing and able to supply at a given price. C) A graph that describes the maximum amount of one good that can be produced for every possible level of production of the other good. D) The actual amount of a good or service consumers are willing to buy at some specific price. Show Answer Correct Answer: C) A graph that describes the maximum amount of one good that can be produced for every possible level of production of the other good. 10. When the government spends more money than it collects in taxes then it is said to be running a: A) Budget Surplus. B) Balanced Budget. C) Budget Deficit. D) National Debt. Show Answer Correct Answer: C) Budget Deficit. 11. The rate of unemployment with price stability is termed as A) Hyper-inflation. B) Natural unemployment. C) Frictional unemployment. D) Disguised unemployment. Show Answer Correct Answer: B) Natural unemployment. 12. Which approach is used to calculate GDP by adding up consumer spending, investment, government spending, exports, and imports? A) Expenditures Approach. B) Income Approach. C) Value-Added Approach. D) Gross Value of Output Approach. Show Answer Correct Answer: A) Expenditures Approach. 13. The first step to take in measuring inflation is to a. A) Convert the dollar cost of representative goods to an index value. B) Find the percentage change in the monthly price level. C) Select a market basket. D) Find the average price of representative goods. Show Answer Correct Answer: C) Select a market basket. 14. Which person would be a loser in an inflationary economy? A) Retiree who lives solely on a fixed social security income. B) Someone with a low fixed interest rate on a loan. C) A saver with a savings account interest rate that's higher than the inflation rate. D) A small business that has a 3-year fixed rate lease on an office space. Show Answer Correct Answer: A) Retiree who lives solely on a fixed social security income. 15. It is the ability of the peso to purchase goods and services. A) CPI. B) PPP. C) PPI. D) CPP. Show Answer Correct Answer: B) PPP. 16. Accounting of National Income at constant prices is known as ..... A) Money income. B) Real income. C) Current income. D) Domestic income. Show Answer Correct Answer: B) Real income. 17. The American Dollar bill is an example of A) Commodity Currency. B) Representative Currency. C) Fiat Currency. D) Public Currency. Show Answer Correct Answer: C) Fiat Currency. 18. Temporary unemployment or being between jobs. Individuals are qualified workers with transferable skills A) Frictional Unemployment. B) Structural Unemployment. C) Cyclical Unemployment. D) None of above. Show Answer Correct Answer: A) Frictional Unemployment. 19. Was a fear that banks would fail and led people to rush them to withdraw their money. A) Bank panic. B) Interest rate. C) Reserve requirement. D) Check clearing. Show Answer Correct Answer: A) Bank panic. 20. If unemployment rate is increasing and GDP is decreasing, the fiscal policy that could be implemented that would be best would be ..... A) Decreasing taxes. B) Decreasing spending. C) Decreasing the IORB. D) Increasing spending. Show Answer Correct Answer: D) Increasing spending. ← 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