This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Macroeconomics – Quiz 42 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 42 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. MPL(marginal Production of Labor)=? A) $\frac{\Delta Y}{\Delta L}$. B) $\frac{\Delta L}{\Delta Y}$. C) $\frac{Y}{L}$. D) $\frac{L}{Y}$. Show Answer Correct Answer: A) $\frac{\Delta Y}{\Delta L}$. 2. Economists say that long-run economic growth is almost entirely due to: A) Rising productivity. B) Population growth. C) A democratically elected government. D) A balanced budget. E) Perfectly competitive markets. Show Answer Correct Answer: A) Rising productivity. 3. Which of these is not a physical trait of money A) Portable. B) Divisible. C) Uniform. D) Simple. Show Answer Correct Answer: D) Simple. 4. ..... occurs when people are in between jobs, entering and reentering the labour force. A) Cyclical unemployment. B) Technological unemployment. C) Frictional unemployment. D) Seasonal unemployment. Show Answer Correct Answer: C) Frictional unemployment. 5. Wages are governed by supply and demand A) True. B) False. Show Answer Correct Answer: A) True. 6. You hear another student say: "Fiscal policy is easy to understand, all you have to know is what is happening with current tax rates!" This student is A) Correct because that is the definition of fiscal policy. B) Incorrect because he is describing monetary policy. C) Partially correct because he needs to include government spending decisions as well. D) Partially correct because he needs to include open market operations as well. Show Answer Correct Answer: C) Partially correct because he needs to include government spending decisions as well. 7. Consumption of domestically produced goods and services plus injections (Cd + J) is known as: A) Aggregate supply. B) Aggregate income. C) National expenditure. D) Total consumption. Show Answer Correct Answer: C) National expenditure. 8. An economics system in which economic decisions and the pricing of goods and services are guided by the interactions of a country's individual citizens and businesses. A) Market Economy. B) Traditional Economy. C) Mixed Economy. D) Command Economy. Show Answer Correct Answer: A) Market Economy. 9. The liquidity continuum ..... A) Refers to how easy it is to use an asset as a store of value. B) Suggests a share of stock is more liquid than precious metal. C) Is used to argue that checking accounts are not liquid enough to belong in the M1 measure of the money supply. D) Argues that credit cards are a relatively "liquid" form of money. E) None of these statements is accurate. Show Answer Correct Answer: B) Suggests a share of stock is more liquid than precious metal. 10. Pollution is a result of the manufacturing process of some products. Therefore, when calculating real GDP ..... A) Pollution should be considered and repaired. B) Should be enhanced by including the cost of cleaning up pollution in the future. C) Tend to overestimate economic well-being. D) Tend to underestimate economic well-being. Show Answer Correct Answer: C) Tend to overestimate economic well-being. 11. Unemployment resulting from industrial reorganization, typically due to technological change, rather than fluctuation in supply or demand A) Cyclical unemployment. B) Frictional unemployment. C) Seasonal unemployment. D) Structural unemployment. Show Answer Correct Answer: D) Structural unemployment. 12. Which of the following is an example of contractionary fiscal policy? A) Increasing the reserve requirement. B) Decreasing government spending. C) Selling government bonds on the open market. D) Decreasing taxes. Show Answer Correct Answer: B) Decreasing government spending. 13. Which one of the following is an injection into the circular flow of income? A) Personal income tax. B) Government purchases of factor services. C) Imports. D) Business tax. Show Answer Correct Answer: B) Government purchases of factor services. 14. An economy is in macroeconomic equilibrium. If Y = 200, C =100, I =30, G=40 and M =30, what is the value of exports? A) 60. B) 40. C) 90. D) 80. Show Answer Correct Answer: A) 60. 15. Supply side policies are often centred on A) Raising inflation. B) Changing the base rate of interest. C) Investing in capital-human and infrastructure. D) Changing laws. Show Answer Correct Answer: C) Investing in capital-human and infrastructure. 16. What is the formula to calculate the unemployment rate? A) Number of unemployed individuals / Labor force * 100. B) Number of unemployed individuals / Number of employed individuals * 100. C) Number of unemployed individuals / Total population * 100. D) Number of employed individuals / Labor force * 100. Show Answer Correct Answer: A) Number of unemployed individuals / Labor force * 100. 17. Which of the following groups of people would benefit from unanticipated inflation? I Savers II Borrowers III Lenders A) I only. B) II only. C) III only. D) I and II only. E) I and III only. Show Answer Correct Answer: B) II only. 18. Imagine a country where the government determines all production, investment, prices, and incomes. What type of economy is this? A) Market Economy. B) Mixed Economy. C) Traditional Economy. D) Command Economy. Show Answer Correct Answer: D) Command Economy. 19. A price index determined by measuring the price of a standard group of goods meant to represent the market basket of a typical urban consumer. A) Gross Domestic Product. B) Consumer Price Index. C) Unemployment. D) Inflation. Show Answer Correct Answer: B) Consumer Price Index. 20. Which change is most likely to reduce total demand? A) An increase in investment. B) An increase in savings. C) A reduction in government tax revenue. D) A reduction in imports. Show Answer Correct Answer: B) An increase in savings. ← 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