This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Macroeconomics – Quiz 45 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 45 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Barter trading will occur when there is A) Singularity of interests. B) Bargaining intermediary. C) Double coincidence of wants. D) Sufficient supply of cash. Show Answer Correct Answer: C) Double coincidence of wants. 2. Income taxes are an example of which type of taxation? A) Benefit Principle. B) Proportional. C) Progressive. D) Regressive. Show Answer Correct Answer: C) Progressive. 3. What kind of chart would determine the impact of household savings on the nation's output of goods and services. A) Production possibilities curve. B) Business circular flowchart. C) Supply and deman graph. D) Pie chart. Show Answer Correct Answer: B) Business circular flowchart. 4. The burden of taxation should involve equal 'sacrifice', I.e. Be progressive A) Certainty canon of taxation. B) Convenience canon of taxation. C) Economy canon of taxation. D) Equity canon of taxation. Show Answer Correct Answer: D) Equity canon of taxation. 5. The recurrent ups and downs in the level of economic activity extending over several years is a description of: A) A recession. B) A business trough. C) A business cycle. D) A noncyclical fluctuation. Show Answer Correct Answer: C) A business cycle. 6. A guarantee that all citizens receive unconditional access to a range of free, basic public services such as shelter, healthcare, education, and public transport A) Universal Basic Income (UBI). B) Universal Job Guarantee (UJG). C) Universal Basic Services (UBS). D) Democratic Socialism. Show Answer Correct Answer: C) Universal Basic Services (UBS). 7. People and governments have begun to wonder whether GDP should be the main way to measure a country's growth. The main proposal is ..... because determine what it means to be a good society acording to 3 dimensions:basic human needs, foundations of wellbeing and opportunity. A) Government Spending. B) Balance of Payments. C) Importations and Exportations. D) Social Progress Index. Show Answer Correct Answer: D) Social Progress Index. 8. What kind of business is BEST described by these statements?I am the only owner of my business. I take all the risks of doing business. I keep all the profits. A) Proprietorship. B) Partnership. C) Corporation. D) Cooperative. Show Answer Correct Answer: A) Proprietorship. 9. Gross Domestic Product is a method for calculating how much a country produces by adding which four spending categories? A) Wages, Rent, Interest, Dividends. B) Consumption, Investment, Government, Business Revenues. C) Consumption, Interest Rates, Government, Net Exports. D) Consumption, Investment, Government, Net Exports. Show Answer Correct Answer: D) Consumption, Investment, Government, Net Exports. 10. Which of the following statements accurately compares Fiscal Policy and Monetary Policy? A) Voters can influence monetary policy, but not fiscal policy. B) Fiscal policy is designed to shift AD, while monetary policy is designed to shift AS. C) Monetary policy can be enacted more quickly than fiscal policy. D) Monetary policy is always effective, while fiscal policy is effective only sometimes. Show Answer Correct Answer: C) Monetary policy can be enacted more quickly than fiscal policy. 11. Surplus in BOP arises when A) Autonomous payments > Autonomous Receipts. B) Accommodating payments> accommodating receipts. C) Accommodating receipts > accommodating payments. D) Autonomous receipts > autonomous payments. Show Answer Correct Answer: D) Autonomous receipts > autonomous payments. 12. What is monetary policy? A) The Federal Reserve's actions to achieve maximum employment. B) Legislation changing levels of taxation and/or government spending to stabilize the economy. C) The interest rate in which depository institutions lend reserve balances to other institutions overnight. D) The accumulation of government deficits over the years. Show Answer Correct Answer: A) The Federal Reserve's actions to achieve maximum employment. 13. In a ..... economy, the government completely controls everything about the economy A) Command. B) Controlled. C) Efficient. D) Invasive. Show Answer Correct Answer: A) Command. 14. Discretionary spending A) Spending for federal programs that must receive approval each year. B) Federal spending required by law that continues each year without the need for congressional approval. C) Purchase or sale of U.S. government bonds and treasury bills. D) The percent of deposits that banks have to have set aside in cash at any given time. Show Answer Correct Answer: A) Spending for federal programs that must receive approval each year. 15. Which of the following events shifts the short-run aggregate supply curve to the right? A) A decrease in the money supply. B) A drop in oil prices. C) An increase in government spending on military equipmentd. D) An increase in price expectations. Show Answer Correct Answer: B) A drop in oil prices. 16. When the Fed lowers interest rates many firms or business will do what? A) Nothing as interest rates do not impact businesses. B) Be able to expand and invest in new resources. C) Be forced to lay off numerous workers. D) There is not enough information to answer the question. Show Answer Correct Answer: B) Be able to expand and invest in new resources. 17. A quantity measured per unit of time period is known as: A) Stock variable. B) Flow variable. C) Inventory. D) None of these. Show Answer Correct Answer: B) Flow variable. 18. Which of the following is known as the father of economics? A) BILL CLINTON. B) DONALD TRUMP. C) DAVID RICARDO. D) ADAM SMITH. Show Answer Correct Answer: D) ADAM SMITH. 19. If the central bank sets the interest rate higher than what will commercial banks be able to lend A) Increased. B) Decrease. C) Does not change. D) All wrong. Show Answer Correct Answer: B) Decrease. 20. The ..... tells us that the time it takes a variable that grows gradually over time to double is approximately 70 divided by that variable's annual growth rate. A) Rule of 70. B) Rule of Increasing Returns. C) Rule of Variable Growth. D) Rule of Annual Returns. Show Answer Correct Answer: A) Rule of 70. ← 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