This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Macroeconomics – Quiz 57 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 57 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. When the supply of a product or service goes up and the demand stays the same the Price will typically do what? A) Rise. B) Fall. C) Stay the same. D) Consumer. Show Answer Correct Answer: B) Fall. 2. If I am offered a job by two employers, which role of money helps me decide which offer is the best? A) Store of value. B) Medium of exchange. C) Unit of account/standard of value. D) None of above. Show Answer Correct Answer: C) Unit of account/standard of value. 3. The aggregate supply curve (short-run) slopes upward and to the right because: A) Changes in wages and other resource prices completely offset changes in the price level. B) The price level is flexible upward but inflexible downward. C) Supply creates its own demand. D) Wages and other resource prices adjust only slowly to changes in the price level. Show Answer Correct Answer: D) Wages and other resource prices adjust only slowly to changes in the price level. 4. An economic actor is ..... A) Is a Hollywood actor. B) A person that uses money to buy goods and services. An economic actor uses these resources to shape an economy. C) A person or unit able to use land, labor or capital. An economic actor uses these resources to shape an economy. D) None of above. Show Answer Correct Answer: C) A person or unit able to use land, labor or capital. An economic actor uses these resources to shape an economy. 5. The production function displays constant returns: A) $Y^-=MPL\.\ L^-\ +\ MPK\.\ K^-$. B) $Y^{ }=MPL.K^-\ +\ MPK.L^-\ \ \ \ \ \ $. C) $Y^{ }=MPL\.\ \ L^{ }\ +\ MPK\.\ \ K^{ }\ \ \ \ $. D) $Y^-=MPL\.\ L^{ }\ +\ MPK\.\ K^{ }\ \ \ \ \ \ \ \ \ \ \ $. Show Answer Correct Answer: A) $Y^-=MPL\.\ L^-\ +\ MPK\.\ K^-$. 6. What is a typical "normal-healthy" inflation rate? A) 10%. B) 2%. C) 0%. D) 12%. Show Answer Correct Answer: B) 2%. 7. Which of the following best describes Keynesian Economics? A) "trickle down" economics. B) Demand-side economics. C) Supply-side economics. D) Reserve-side economics. Show Answer Correct Answer: B) Demand-side economics. 8. This occurs from the shift in supply curve which is usually a result of an increase in production cost. A) Inflation. B) Hyperinflation. C) Demand pull inflation. D) Cost push inflation. Show Answer Correct Answer: D) Cost push inflation. 9. Economic growth affects the PPF by ..... A) Shifting inward. B) Shifting outward. C) Causing no change at all. D) Turning it into a straight line. Show Answer Correct Answer: B) Shifting outward. 10. What is the Phillips curve? A) The Phillips curve represents the relationship between unemployment and inflation. B) The Phillips curve represents the relationship between wages and productivity. C) The Phillips curve represents the relationship between government spending and national debt. D) The Phillips curve represents the relationship between interest rates and economic growth. Show Answer Correct Answer: A) The Phillips curve represents the relationship between unemployment and inflation. 11. The value of a country's exports minus the value of its imports is called..... A) Trade surplus. B) Balanced trade. C) Balance of trade. D) Open economy. Show Answer Correct Answer: C) Balance of trade. 12. Amount of money a borrower must pay for the usage of someone else's money A) Finance charge. B) Unsecured loan. C) Collateral. D) Interest. Show Answer Correct Answer: D) Interest. 13. Which type of GDP accounts for inflation and is therefore the MOST accurate? A) Nominal. B) Growth. C) Real. D) Non-Market. Show Answer Correct Answer: C) Real. 14. Economic institution differs from country to country True or False? A) False. B) True. Show Answer Correct Answer: B) True. 15. Which monetary policy tool would be expansionary? A) Decrease reserve requirement. B) Increase discount rate. C) Increase interest paid on reserves. D) Selling bonds via open market operations. Show Answer Correct Answer: A) Decrease reserve requirement. 16. It is possible for an economy to increase its production of both goods if the economy A) Moves downward and to the right along its production possibilities frontier and the frontier is bowed outward. B) Moves upward and to the left along its production possibilities frontier and the frontier is bowed outward. C) Moves in either direction along its production possibilities frontier in the frontier is a straight line. D) Moves from a situation of inefficient production to a situation of efficient production. E) Moves upward and to the right along its production possibilities frontier in the frontier is bowed inward. Show Answer Correct Answer: D) Moves from a situation of inefficient production to a situation of efficient production. 17. Assume that the nominal interest rate is 10%, if the expected inflation rate is 5%, the real interest rate is A) 0.5%. B) 2%. C) 5%. D) 10%. Show Answer Correct Answer: C) 5%. 18. The crucial difference between the Keynesian and classical theories of money demand is that A) Keynes believed that money demand fluctuates with the return on other assets while the classical economists did not. B) Keynes took account of the transactions motive for money demand while the classical economists did not. C) Keynes assumed that velocity was constant while the classical economists did not. D) The classical economists considered income as a systematic influence on money demand and Keynes did not. Show Answer Correct Answer: A) Keynes believed that money demand fluctuates with the return on other assets while the classical economists did not. 19. Which card takes the money out of your account immediately? A) Credit. B) Debit. Show Answer Correct Answer: B) Debit. 20. Unemployment caused by a recession. A) Seasonal. B) Cyclical. C) Structural. D) Frictional. Show Answer Correct Answer: B) Cyclical. ← 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