This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Macroeconomics – Quiz 51 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 51 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Actual GDP can never be greater than potential GDP. A) True. B) Lie. Show Answer Correct Answer: B) Lie. 2. What court holds ultimate hierarchy? A) None they all have the same amount of authority. B) The High Court. C) The Magistrates Court. D) Circuit Court. Show Answer Correct Answer: B) The High Court. 3. What are the two parts of economics? A) Microeconomics and macroeconomics. B) Supply and demand. C) Gross Domestic Product and unemployment. D) Inflation and interest rates. Show Answer Correct Answer: A) Microeconomics and macroeconomics. 4. Which of the following would NOT be considered part of the labor force? A) Tyler, a banker who feels he is overqualified for his job. B) Savana, who is unemployed but has attended three job interview in the last month. C) Ricky, who has a part-time job but wants a full-time job. D) Garrett, a stay-at-home dad. Show Answer Correct Answer: D) Garrett, a stay-at-home dad. 5. Who provides top leadership for the Federal Reserve? A) Member Banks. B) Federal Open Market Committee. C) Board of Governors. D) Federal Depository Institutions. Show Answer Correct Answer: C) Board of Governors. 6. In case of Appreciation of Rupees against US Dollar (foreign currency), what will be the impact of it on US Imports from India. A) Decrease. B) Increase. C) No change. D) Don't Know. Show Answer Correct Answer: A) Decrease. 7. GDP and the GDP deflator are only created and published on..... A) Every Quarter. B) Every year. C) Every month. D) Every semester. Show Answer Correct Answer: A) Every Quarter. 8. The main factor that differentiates gross domestic product from gross national product is ..... A) Inflow and outflow of capital. B) Income from investment. C) Foreign investment. D) Exports and imports of goods. Show Answer Correct Answer: C) Foreign investment. 9. The U.S. government is looking to face a nearly $ 2 trillion ..... for 2022. A) National debt. B) Payroll liability. C) Budget deficit. D) Nest egg. Show Answer Correct Answer: C) Budget deficit. 10. Assume that the economy is at full employment. Policy makers wish to maintain the price level but want to encourage greater investment. Which of the following combinations of monetary policy and fiscal policy would best achieve this goal? (monetary policy first option, fiscal policy second option) A) No change, contractionary. B) Expansionary, no change. C) Expansionary, contractionary. D) Expansionary, expansionary. Show Answer Correct Answer: C) Expansionary, contractionary. 11. Fiscal policy is enacted through changes in what? A) Interest rates. B) The supply of money. C) Unemployment and inflation. D) Taxation and government spending. Show Answer Correct Answer: D) Taxation and government spending. 12. Measuring the rate of unemployment A) Macroeconomics. B) Microeconomic. Show Answer Correct Answer: A) Macroeconomics. 13. Monetary Policy is the Federal Reserve Systems attempt to ..... A) Control the amount of money in circulation. B) Control the Federal Government's debt. C) Control state governments' spending. D) None of these answers are correct. Show Answer Correct Answer: A) Control the amount of money in circulation. 14. Elasticity is the measure of ..... A) Responsiveness. B) Change. C) Price. D) Need. Show Answer Correct Answer: A) Responsiveness. 15. GDP is the national output index calculated according to? A) Territorial perspective. B) The final product was created during the year. C) Added value of all industries producing goods and services at home and abroad during the year. D) A and b are correct. Show Answer Correct Answer: D) A and b are correct. 16. Which of these is NOT one of the main functions of the Federal Reserve? A) Provide deposit insurance. B) Regulate capital requirements. C) Set and maintain/regulate reserve requirements. D) Lend through the discount window. E) Conduct fiscal policy. Show Answer Correct Answer: E) Conduct fiscal policy. 17. Which is the following statement is incorrect? A) There is equality income in economy. B) Right to own property. Show Answer Correct Answer: A) There is equality income in economy. 18. The crowding out effect manifests itself in the GDP formula by causing A) An increase in G and a decrease in Xn. B) A decrease in G and an increase in C. C) An increase in I and a decrease in G. D) An increase in G but a decrease in I. Show Answer Correct Answer: D) An increase in G but a decrease in I. 19. Gross investment equals to A) Net investment + depreciation + change in stock. B) Net fixed investment + additions to stock + depreciation. C) Gross capital formation + depreciation. D) Net fixed investment + depreciation. Show Answer Correct Answer: B) Net fixed investment + additions to stock + depreciation. 20. A business required to hire only union members A) Open Business. B) Closed Business. C) Right to Work Law. D) Open Shop. Show Answer Correct Answer: D) Open Shop. ← 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