This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Macroeconomics – Quiz 44 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 44 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Products that we can use instead of each other. A) Complements. B) Substitutes. C) Related goods. D) Pairs. Show Answer Correct Answer: B) Substitutes. 2. The population of Ectenia is 100 people:40 work full-time, 20 work half-time but would prefer to work full-time, 10 are looking for a job, 10 would like to work but are so discouraged that they have given up looking, 10 are not interested in working because they are full-time students, and 10 are retired. What is the size of the labor force? A) 60. B) 70. C) 80. D) 90. Show Answer Correct Answer: B) 70. 3. You buy share in ABC company in the Internet and the brokerage charges you $ 50. A) This will increase the investment component of GDP and therefore overall GDP. B) This has no effect on GDP. C) This will increase GDP by $ 50. D) This will increase GDP by the cost of the shares minus $ 50. E) This will increase GDP by the cost of the share plus $ 50. Show Answer Correct Answer: C) This will increase GDP by $ 50. 4. From the following choose the country which have highest economic welfare. A) Country A, whose GDP is very large but distributed unequally among the people. B) Country B, whose GDP is very large and distributed equally among the people. C) Country C, whose GDP is less but distributed equally among the people. D) Country D, whose GDP is less and distributed unequally among the people. Show Answer Correct Answer: B) Country B, whose GDP is very large and distributed equally among the people. 5. Monetary policy as a source of instability A) Economy is in stable condition, then Fed conducts monetary policy which moves it away from natural rate. B) Reduces severity of short run economic fluctuations. C) Offset changes in AD that move economy away from natural rate. D) None of above. Show Answer Correct Answer: A) Economy is in stable condition, then Fed conducts monetary policy which moves it away from natural rate. 6. What are the three questions all economic systems must answer? A) Who to produce for? What to produce? Where to make it?. B) What to produce? How to Produce it? Who gets what is produced?. C) When to produce? How to produce? Which things to produce?. D) None of above. Show Answer Correct Answer: B) What to produce? How to Produce it? Who gets what is produced?. 7. Which of the following leads to depreciation? None of these A) Normal wear and tear. B) Damages due to floods. C) Damages due to market-crash. D) None of these. Show Answer Correct Answer: A) Normal wear and tear. 8. Long run equilibrium is the intersection of AD and LAS curves A) True. B) False. Show Answer Correct Answer: A) True. 9. Which one of the following is most likely to indicate a decrease in material living standards? A) A decrease in crime rates. B) Decreased levels of real GDP. C) Decreased levels of environmental biodiversity. D) Decreased rates of vaccinations for preventable diseases. Show Answer Correct Answer: B) Decreased levels of real GDP. 10. Value of Investment Multiplier directly related to MPC but inversely related with A) APC. B) MPS. C) APS. D) NONE OF THESE. Show Answer Correct Answer: B) MPS. 11. The accelerator principle illustrates the relationship between investment and the rate of change of A) Unemployment. B) Prices. C) Government spending. D) National income. Show Answer Correct Answer: D) National income. 12. Taking payments out of your pay before you receive it. A) Withholding. B) Tax return. C) Taxable income. D) Personal exemption. Show Answer Correct Answer: A) Withholding. 13. If the Federal Reserve increases the money supply, the aggregate-demand curve shifts to left A) True. B) False. Show Answer Correct Answer: B) False. 14. ..... is the market value of all final goods and services produced within a country in a given period of time. A) Output. B) GDP. C) Total income. D) None of above. Show Answer Correct Answer: B) GDP. 15. This business venture is an agreement between two or more groups to form a business entity in order to achieve a specific goal or to operate for a specific period of time. A) Joint venture. B) Limited liability company (LLC). C) S-Corporation. D) Syndicate. Show Answer Correct Answer: A) Joint venture. 16. Who is a microeconomic decision maker? A) The director of an international trade organisation. B) The entrepreneur of a firm. C) The finance minister of a government. D) The governor of a central bank. Show Answer Correct Answer: B) The entrepreneur of a firm. 17. Which school of economic thought arose during the stagflation of the 1970s and early 80s as an attempt to grow the economy with tax cuts? A) Monetarism. B) Keynesian Economics. C) Supply Side Economics. D) Neo-classical Economics. E) RET. Show Answer Correct Answer: C) Supply Side Economics. 18. Which of the following indicators is most appropriate in predicting a turningpoint in the economy? A) The Industrial Production Index. B) The average bank prime lending rate. C) Average weekly hours, manufacturing. D) None of above. Show Answer Correct Answer: C) Average weekly hours, manufacturing. 19. The macroeconomic variables are as follows, except A) Wage rate. B) Inflation rate. C) Unemployment rate. D) Economic growth rate. Show Answer Correct Answer: A) Wage rate. 20. Which of the following is a macroeconomics statement? A) The gross profit of all Malaysian businesses were RM10 billion last year. B) The price of beef declined by 1% last year. C) Perodua company profits increased in the year 2003. D) High levels of environmental quality. Show Answer Correct Answer: A) The gross profit of all Malaysian businesses were RM10 billion last year. ← 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