This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Macroeconomics – Quiz 52 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 52 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. When government expenditure is similar to revenue, the budget is ..... A) Minimum budget. B) Balanced budget. C) Surplus budget. D) Maximum budget. Show Answer Correct Answer: B) Balanced budget. 2. Economic Growth may have disadvantages because: A) Firm owners get rich. B) Governments spend more. C) Resources may get depleted. D) Workers earn more. Show Answer Correct Answer: C) Resources may get depleted. 3. Consumer Spending is the largest portion of GDP A) True. B) False. Show Answer Correct Answer: A) True. 4. All consumers experience the same inflation rate becasue everyone buys the same market basket. A) True. B) False. Show Answer Correct Answer: B) False. 5. Which of the following fiscal and monetary policy combinations would MOST LIKELY cause GDP to increase and unemployment to fall? A) Cut taxes Raise spending. B) Cut taxes Sell bonds. C) Cut taxes Decrease spending. D) Cut Taxes Buy bonds. Show Answer Correct Answer: D) Cut Taxes Buy bonds. 6. What is used to determine if prices are stable or not? A) Inflation. B) Unemployment Rates. C) The Labor Force. D) Consumer Price Index (CPI). Show Answer Correct Answer: D) Consumer Price Index (CPI). 7. Assume that a country with an open economy has a fixed exchange-rate system and that its currency is currently overvalued in the foreign exchange market. Which of the following must be true at the official exchange rate? A) The quantity of the country's currency supplied is less than the quantity demanded. B) The quantity of the country's currency supplied exceeds the quantity demanded. C) The demand curve for the country's currency is horizontal. D) The supply curve for the country's currency is horizontal. E) The domestic interest rate is equal to the interest rate in the rest of the world. Show Answer Correct Answer: A) The quantity of the country's currency supplied is less than the quantity demanded. 8. If the unemployment rate is rising and GDP is falling, the fiscal policy action that the federal government should MOST likely follow is A) Decreasing taxes. B) Decreasing spending. C) Decreasing the money supply. D) Decreasing the reserve requirement. Show Answer Correct Answer: A) Decreasing taxes. 9. Included in GDP A) Black Market or illegal activities. B) Intermediate Products like tires on a brand new Ford. C) Non-Market activities like cutting grass for your grandma. D) Brand new Ford. Show Answer Correct Answer: D) Brand new Ford. 10. Which of the following is an example of inelastic demand? A) Jason wants the most expensive cellphone. He decides to get a cheaper model. B) Priya wants to go to the season-opening game. Tickets to another game cost less, but she still buys tickets for the opener. C) Tianna wants to try out a new, expensive restaurant. She goes to another restaurant whose food is excellent and costs less. D) Shawn wants to buy a house in one neighborhood. But after searching, he decides to buy a house elsewhere instead. Show Answer Correct Answer: B) Priya wants to go to the season-opening game. Tickets to another game cost less, but she still buys tickets for the opener. 11. The ..... rate is the interest rate the Fed charges on loans to banks. A) Discount. B) Interest. C) Federal Funds. D) Loanable. Show Answer Correct Answer: A) Discount. 12. Identify the contractionary monetary tool of the central bank to control inflation. A) Decrease the bank rate. B) Decrease the rate of interest. C) Decrease the reserve requirements. D) Selling of government securities in the open market. Show Answer Correct Answer: D) Selling of government securities in the open market. 13. Corn/TV Sets A 0/6 B 12/5 C 22/4 D 30/3 E 36/2 F 40/1 G 42/0The OC of producing the sixth TV set is A) 42 units of corn. B) 40 units of corn. C) 12 units of corn. D) 2 units of corn. Show Answer Correct Answer: C) 12 units of corn. 14. According to the view of modern economics, the main tool for measuring economic activity is..... A) Gross National Product (GNP). B) Gross Domestic Product (Gross Domestic Product). C) Net National Product (PNN). D) Net National Income (PN). E) All wrong. Show Answer Correct Answer: A) Gross National Product (GNP). 15. What do business owners consider when they select a business ownership structure? A) Personal circumstances, type of business, and product mix. B) Product versatility, financial needs, and advertising strategies. C) Personal circumstances, financial needs, and type of business. D) Product versatility, advertising strategies, and personal circumstances. Show Answer Correct Answer: C) Personal circumstances, financial needs, and type of business. 16. A period in which the economy declines and shrinks A) Slump. B) Contraction. C) Recession. D) All of the above. Show Answer Correct Answer: D) All of the above. 17. If Vietnam's trading partners grow strongly and buy more Vietnamese goods, in the short run A) The price level falls, output remains unchanged. B) The price level falls, output decreases. C) The price level increases, output decreases. D) None of the above. Show Answer Correct Answer: D) None of the above. 18. GDP Equation: A) GDP = Consumption + investment + Government Spending + Net Exports (X-M). B) GDP = Capital + investments + Government Spending + Net Exports (X-M). C) GDP = Capital + Interest + Government Spending + Net Exports. D) GDP = Consumption + Investment + Government + Net imports. Show Answer Correct Answer: A) GDP = Consumption + investment + Government Spending + Net Exports (X-M). 19. What is the difference between product markets and factor markets? A) Product markets are where goods and services are bought and sold; factor markets are where resources (such as capital and labor) are bought and sold. B) Factor markets are where goods and services are bought and sold; product markets are where resources (such as capital and labor) are bought and sold. C) They are the same. D) None of above. Show Answer Correct Answer: A) Product markets are where goods and services are bought and sold; factor markets are where resources (such as capital and labor) are bought and sold. 20. What is currency used to buy? A) Producers and consumers. B) Goods and services. C) Productive resources. D) Supply and demand. Show Answer Correct Answer: B) Goods and services. ← 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