This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Macroeconomics – Quiz 40 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 40 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of the following is concerned with macroeconomics study? A) Inflation. B) Average cost. C) Factor market. D) Individual demand. Show Answer Correct Answer: A) Inflation. 2. Which of the following is the actual definition of transfer payments? A) Compensation to the employees within an Organisation. B) Payments made to workers on transferring from one job to another. C) Payments made without any exchange of goods and services. D) Payments made for production. Show Answer Correct Answer: C) Payments made without any exchange of goods and services. 3. What will generally happen to the aggregate demand curve when consumer confidence decreases? A) Curve shifts left. B) No change in curve. C) Curve slopes up. D) Curve shifts right. Show Answer Correct Answer: A) Curve shifts left. 4. Which of the following is likely the best indicator of economic health? A) Real GDP is $ 18 trillion. B) Real GDP grew by 3 percent this year. C) Nominal GDP is $ 18 trillion. D) Nominal GDP grew by 3 percent this year. Show Answer Correct Answer: B) Real GDP grew by 3 percent this year. 5. The goal of macroeconomics is ..... A) To explain the economic changes that affect a particular household, firm or market. B) To explain the economic changes that affect many households, firms, and market simultaneously. C) To devise policies to deal with market failures, such as monopoly, externalities, common resources and public goods. D) All of above. Show Answer Correct Answer: D) All of above. 6. The table below shows labor market statistics for a nation. Number of Workers Structurally Unemployed 3 millionNumber of Workers Cyclically Unemployed 4 millionNumber of Workers Frictionally Unemployed 2 millionNumber of Workers Officially Classified as Employed 91 millionWorking-age Population. 150 million What is the nation's unemployment rate? A) 4%. B) 5%. C) 6%. D) 9%. E) 66.7%. Show Answer Correct Answer: D) 9%. 7. What is the invisible hand? A) The self-regulating nature of the market place. B) Self-interest motivating the market place. C) Competition being the regulating force in the market place. D) The equal distribution of wealth. Show Answer Correct Answer: A) The self-regulating nature of the market place. 8. Which condition indicates that the United States is in a recession? A) The US trade deficit doubles during one fiscal year. B) The US GDP declines for six consecutive months. C) The Dow Jones Industrial Average plummets more than 100 points in a day. D) The Federal Reserve Board raises the discount lending rate by more than 1 percent. Show Answer Correct Answer: B) The US GDP declines for six consecutive months. 9. Another name for net export is..... A) Export-import. B) Net capital outflow. C) Net capital inflow. D) Trade balance. Show Answer Correct Answer: D) Trade balance. 10. Unemployment caused when a man resigns from his job to start looking for a higher paying job. A) Structural. B) Seasonal. C) Frictional. D) Cyclical. Show Answer Correct Answer: C) Frictional. 11. M2 consists of..... A) Currency. B) Currency + demand deposits, check, dan other checkable deposit. C) Currency + demand deposits, check, dan other checkable deposit + Retail money market mutual fund balance, saving deposit and time deposit. D) Currency + demand deposits, check, dan other checkable deposit + Retail money market mutual fund balance, saving deposit and time deposit + loans. Show Answer Correct Answer: C) Currency + demand deposits, check, dan other checkable deposit + Retail money market mutual fund balance, saving deposit and time deposit. 12. All natural resources that go into the production of a good or service: A) Capital. B) Entrepreneurship. C) Land. D) Labor. Show Answer Correct Answer: C) Land. 13. Microeconomics is the study of how households and firms make decisions and how they interact in markets. A) True. B) False. Show Answer Correct Answer: A) True. 14. If we pay tax and consume goods, but still have money left, we keep the money in the bank as A) Private Saving. B) Public Saving. C) National Saving. D) Investment Saving. Show Answer Correct Answer: A) Private Saving. 15. Both the individual and the state should know exactly how much tax should be paid, when and how A) Certainty canon of taxation. B) Convenience canon of taxation. C) Economy canon of taxation. D) Equity canon of taxation. Show Answer Correct Answer: A) Certainty canon of taxation. 16. Which of the following is not included in GDP? A) Intermediate goods. B) Non-production transactions. C) Use goods. D) Illegal transactions. Show Answer Correct Answer: A) Intermediate goods. 17. The leader of the union known as the American Federation of Labor (AFL) A) Samuel Gompers. B) Terrence Powderly. C) John P. Morgan. D) Henry Bessemer. Show Answer Correct Answer: A) Samuel Gompers. 18. TRUE or FALSE: "Discouraged" workers are a subset of those workers classified as not in the labor force by Eurostat. A) TRUE. B) FALSE. Show Answer Correct Answer: A) TRUE. 19. Increasing government spending to stimulate the economy is called: A) Tight fiscal policy. B) Tight monetary policy. C) Loose monetary policy. D) Loose fiscal policy. Show Answer Correct Answer: D) Loose fiscal policy. 20. The Phillips curve indicates that when the labor market is ....., production costs will ..... and the aggregate supply curve shifts out. A) Easy; rise. B) Easy; fall. C) Tight; fall. D) Tight; rise. Show Answer Correct Answer: B) Easy; fall. ← 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