This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Macroeconomics – Quiz 43 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 43 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The cost of collection should be as small as possible A) Certainty canon of taxation. B) Convenience canon of taxation. C) Economy canon of taxation. D) Equity canon of taxation. Show Answer Correct Answer: C) Economy canon of taxation. 2. How are monetary policy and fiscal policy similar? A) They are both done by the President. B) They are both done by the Fed. C) They are both used to keep the economy stable. D) They both use four tools. Show Answer Correct Answer: C) They are both used to keep the economy stable. 3. Increase in investment demand A) Investment demand curve shifts right. B) Investment demand curve shifts left. C) S curve shifts right. D) R increases. Show Answer Correct Answer: A) Investment demand curve shifts right. 4. If the marginal propensity to consume (MPC) is 0.9, what is the maximum amount that the equilibrium gross domestic product could change if government expenditures increase by $ 1 billion? A) It could decrease by $ 9 billion. B) It could increase by $ 0.9 billion. C) It could increase by $ 1 billion. D) It could increase by $ 9 billion. E) It could increase by $ 10 billion. Show Answer Correct Answer: E) It could increase by $ 10 billion. 5. To find GDP per capita A) You divide GDP by the population in that country. B) You multiply GDP and population. C) You multiply exports with imports. D) None of above. Show Answer Correct Answer: A) You divide GDP by the population in that country. 6. GDP gauges the number of voluntary economic transactions that occur in a nation, which is good indication of ..... A) Interest rates. B) The effects of free trade agreements. C) Citizens' overall well-being. D) Money supply. Show Answer Correct Answer: C) Citizens' overall well-being. 7. An economy where economics decisions are passed down from government authority and where the government owns the resources A) Command economy. B) Market economy. C) Labor market. D) Market. Show Answer Correct Answer: A) Command economy. 8. The study of how the allocation of resources affects economic well being. A) Externality. B) Welfare economics. C) Willingness to pay. D) None of above. Show Answer Correct Answer: B) Welfare economics. 9. Too little capital:k* A) Increase saving rate to increase kC reduces for current and increases for future; increase I; increase output. B) Decrease saving rate to increase kC reduces for current and increases for future; increase I; increase output. C) Increase saving rate to decrease kC reduces for current and increases for future; increase I; increase output. D) Increase saving rate to increase kC increases; increase I; increase output. Show Answer Correct Answer: A) Increase saving rate to increase kC reduces for current and increases for future; increase I; increase output. 10. Portfolio investment ..... A) Refers to the purchase of financial assets such as stocks and bonds. B) Was historically only available to wealthy individuals. C) Is viewed as another form of savings by economists. D) Both (a) and (b) are correct but (c) is incorrect. E) All three of (a), (b), and (c) are accurate statements. Show Answer Correct Answer: E) All three of (a), (b), and (c) are accurate statements. 11. Olivia volunteers full time at an animal shelter and will not accept any offers for a paid job for the next six months. Olivia is A) Cyclically unemployed. B) Not in the labor force. C) Employed. D) Structurally unemployed. E) A seasonal worker. Show Answer Correct Answer: B) Not in the labor force. 12. How is a decrease in the price of a good illustrated on a demand graph? A) The demand curve shifts to the right. B) The demand curve shifts to the left. C) There is upward movement along the demand curve. D) There is downward movement along the demand curve. Show Answer Correct Answer: D) There is downward movement along the demand curve. 13. Which type of economic system is it when the government decides what to produce, the government decides how to produce, and the government decides who gets the goods produced? A) Traditional. B) Command. C) Market. D) Mixed. Show Answer Correct Answer: B) Command. 14. Law of Demand A) The claim that, other things being equal, the quantity demanded of a good falls when the price of the good rises. B) Additional. C) The claim that, other things equal, the quantity supplied of a good rises when the price of the good rises. D) Any resources used to create goods and services. Examples of inputs include labor (workers' time), fuel, materials, buildings, and equipment. Show Answer Correct Answer: A) The claim that, other things being equal, the quantity demanded of a good falls when the price of the good rises. 15. In the Mundell-Fleming model, the exogenous variables are the: A) World interest rate, the price level, and the exchange rate. B) Level of government spending, taxes, and income. C) Exchange rate and level of income. D) Price level, world interest rate, monetary policy, and fiscal policy. Show Answer Correct Answer: D) Price level, world interest rate, monetary policy, and fiscal policy. 16. Which approach is the most important way to measure GDP? A) Expenditures approach. B) Income approach. C) Value-added approach. D) All approaches are equally important. Show Answer Correct Answer: A) Expenditures approach. 17. Eleanor is a senior in high school who tutors a freshman in high school. In exchange, she only receives free housing from the freshman's family. How would she be categorized by the BLS? A) Employed. B) Unemployed. C) Underemployed. D) Not in the Labor Force. Show Answer Correct Answer: D) Not in the Labor Force. 18. Which one of the following is not one of the basic economic questions? A) What to produce. B) Who to produce for. C) How to produce. D) How to minimize economic growth. Show Answer Correct Answer: D) How to minimize economic growth. 19. If Mr. Woodward's disposable income increases from $ 600 to $ 650 and her level of personal consumption expenditures increase from $ 480 to $ 520, you may conclude that her marginal propensity to A) Consume is 0.8. B) Consume is 0.4. C) Save is 0.8. D) Save is 0.4. Show Answer Correct Answer: A) Consume is 0.8. 20. The federal government buys $ 20 million worth of computers from Apple. If the MPC is 0.60, what will be the impact on aggregate demand, other things being equal? A) Aggregate demand will increase $ 12 million. B) Aggregate demand will increase $ 13.33 million. C) Aggregate demand will increase $ 20 million. D) Aggregate demand will increase $ 50 million. E) Aggregate demand will not change. Show Answer Correct Answer: D) Aggregate demand will increase $ 50 million. ← 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