This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Macroeconomics – Quiz 39 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 39 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What does CD stand for when talking about investments? A) Calculated Dividend. B) Certificate of Deposit. C) Central Dollar. D) Current Deposit. Show Answer Correct Answer: B) Certificate of Deposit. 2. The United Nations recently called for governments to stop the $ 5 trillion dollars they give to oil companies every year. This would likely cause a drop in the supply of oil products like gasoline. Which determinant of supply does this illustrate? A) Worker productivity/ motivation. B) Government taxes/ subsidies. C) Change in technology. D) Complements. Show Answer Correct Answer: B) Government taxes/ subsidies. 3. Gross domestic product or GDP is defined as? A) The total dollar value of intermediate goods and services produced in an economy in a given time period. B) The total dollar value of final goods and services produced in the economy in a given time period. C) The total dollar value of wages paid to producing workers in a given time period. D) The total dollar value of government production in a given time period. Show Answer Correct Answer: B) The total dollar value of final goods and services produced in the economy in a given time period. 4. A sudden crash in the stock market shifts A) The aggregate-demand curve. B) The short-run aggregate-supply curve, but not the long-run aggregate-supply curve. C) The long-run aggregate-supply curve, but not the short-run aggregate-supply curve. D) Both the short-run and the long-run aggregate-supply curves. Show Answer Correct Answer: A) The aggregate-demand curve. 5. Someone who is motivated to start a business by the promise of making a profit. A) Consumer. B) Entrepreneur. C) Shareholder. D) Banker. Show Answer Correct Answer: B) Entrepreneur. 6. The consumer price index (CPI) is an indicator of which of the following? A) The size of the economy. B) The velocity of money. C) The level of inflation or deflation. D) The presence of a budget deficit or surplus. Show Answer Correct Answer: C) The level of inflation or deflation. 7. Costs that we made in the past that we cannot recover A) Sunk Cost. B) Utility. C) Opportunity Cost. D) Opportunity Set. Show Answer Correct Answer: A) Sunk Cost. 8. Why do supply-side policies make UK goods more competitive? A) They lead to a rise in output. B) They lead to a fall in prices. C) They encourage higher consumption. D) They discourage monopolies. Show Answer Correct Answer: B) They lead to a fall in prices. 9. Macroeconomics studies the economy from viewpoint of ..... A) The firms. B) The households. C) The government. D) The entire economy. Show Answer Correct Answer: D) The entire economy. 10. It is a macroeconomic model that shows the interactions and interrelationships among the macroeconomic sectors. A) CIRCULAR FLOW OF INCOME and GOODS. B) DIAGRAM OF INCOME and GOODS. C) CIRCULAR FLOW OF SAVINGS. D) None of above. Show Answer Correct Answer: A) CIRCULAR FLOW OF INCOME and GOODS. 11. Opportunity cost A) Quantity of goods or services produced in a given time period, by a firm, industry, or country. B) The most desirable alternative given up as the result of a decision. C) All human-made goods that are used to produce other goods and services; tools and buildings. D) X-Axis. Show Answer Correct Answer: B) The most desirable alternative given up as the result of a decision. 12. In a recession, uncertainty about employment can deter spending. Which of the following is a synonym for "deter?" A) Discourage. B) Enable. C) Facilitate. D) Permit. Show Answer Correct Answer: A) Discourage. 13. When does the short run fluctuation occur? A) There is a change in the IS curve or LM curve or both. B) Only when there is a change in the IS curve. C) Only when there is a change in the LM curve. D) Only when there is a change in both curves. Show Answer Correct Answer: A) There is a change in the IS curve or LM curve or both. 14. Inflation that occurs when a country experiences very high and usually accelerating rates of inflation, rapidly decreasing the real value of the local currency. A) Creeping Inflation. B) Hyperinflation. C) Deflation. D) Cost-push inflation. Show Answer Correct Answer: B) Hyperinflation. 15. Open economy A) Stocks. B) Closed economy. C) Import. D) Open economy. Show Answer Correct Answer: D) Open economy. 16. What is the difference between a stock and a bond? A) A stock is a share in the ownership of a company held by a shareholder; a bond is a loan in the form of an IOU that pays interest. B) A bond is a share in the ownership of a company held by a shareholder; a stock is a loan in the form of an IOU that pays interest. C) They are the same. D) None of above. Show Answer Correct Answer: A) A stock is a share in the ownership of a company held by a shareholder; a bond is a loan in the form of an IOU that pays interest. 17. An increase in the overall price level is known as A) Recession. B) Stagflation. C) Deflation. D) Inflation. Show Answer Correct Answer: D) Inflation. 18. Which tool of monetary policy matches this definition:Since the Fed is the Lender of Last Resort, when banks can't borrow from one another, they borrow from the Federal Reserve. The interest the Fed charges on loans is this term. A) Reserve Requirement. B) Interest on Required and Excess Reserves. C) Discount Rate. D) Open Market Operations. Show Answer Correct Answer: C) Discount Rate. 19. TRUE or FALSE:Currently about 16 out of every 100 workers in the United States are full-time homemakers. A) TRUE. B) FALSE. Show Answer Correct Answer: A) TRUE. 20. Choose the Best Answer.When there is a trade surplus, what is the algebraic sign of "net exports" in the expenditure formula of GDP? A) Negative. B) Positive. C) Both Negative and Positive. D) None of the above. Show Answer Correct Answer: B) Positive. ← 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