This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Macroeconomics – Quiz 61 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 61 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. In a particular country in 2000, the average worker needed to work 40 hours to produce 55 units of output. In that same country in 2008, the average worker needed to work 30 hours to produce 45 units of output. In that country, the productivity of the average worker A) Decreased by about 6 percent between 2000 and 2008. B) Remained unchanged between 2000 and 2008. C) Increased by about 9 percent between 2000 and 2008. D) Increased by about 18 percent between 2000 and 2008. E) Decreased by about 9 percent between 2000 and 2008. Show Answer Correct Answer: C) Increased by about 9 percent between 2000 and 2008. 2. The short run trade off between inflation and unemployment implies that, in the short run, A) A decrease in the growth rate of the quantity of money will be accompanied by an increase in the unemployment rate. B) An increase in the growth rate of the quantity of money will be accompanied by an increase in the unemployment rate. C) Policymakers are able to reduce the inflation rate and at the same time reduce the unemployment rate. D) Policymakers can influence the inflation rate but not the unemployment rate. E) Policymakers can influence the unemployment rate but not the inflation rate. Show Answer Correct Answer: A) A decrease in the growth rate of the quantity of money will be accompanied by an increase in the unemployment rate. 3. Production and accumulation of goods for future use in production processes. A) Investment in real capital. B) Real capital. C) Investment. D) Depreciation. Show Answer Correct Answer: A) Investment in real capital. 4. The ..... was created by Congress to investigate charges of discrimination in the workplace. A) Equal Employment Opportunity Commission. B) Clayton Anti-Trust Act. C) National Labor Relations Act. D) Fair Labor Standards Act. Show Answer Correct Answer: A) Equal Employment Opportunity Commission. 5. Which of the followings can be categorized into qualitative instruments of monetary policy? A) Funding. B) Interest rates. C) Open market operations. D) Legal cash reserve requirement. Show Answer Correct Answer: A) Funding. 6. What would you expect to happen following an increase in house prices in the UK? A) Rise in GDP. B) Fall in GDP. C) No Effect on GDP. D) None of above. Show Answer Correct Answer: A) Rise in GDP. 7. According to the monetarists, which of the following statements is true of expansionary fiscal policy? A) It will cause interest rates to rise and crowd out private investment spending. B) It should not be used so long as there is a national debt. C) It should only be used when some resources are unemployed and inflation is low. D) It will decrease aggregate income. E) It will increase aggregate income as long as the money supply is decreased at a slow, steady rate. Show Answer Correct Answer: A) It will cause interest rates to rise and crowd out private investment spending. 8. A statement that is based on someone's opinion is A) Normative statement. B) Positive statement. C) An economizing problem. D) Specialization. Show Answer Correct Answer: A) Normative statement. 9. Government laws to regulate prices instead of letting market forces determine prices A) Price control. B) Price. C) Price ceiling. D) Price floor. Show Answer Correct Answer: A) Price control. 10. What causes demand pull inflation? A) Rise in price due to a decrease in supply. B) A rise in price level due to an increase in consumption. C) A rise in price due to an increase in the cost of production. D) A decrease in price due to a decrease in supply. Show Answer Correct Answer: B) A rise in price level due to an increase in consumption. 11. Nublan pays a tax RM300 on his income of RM60, 000, while Nawal pays a tax of RM120 on her income of RM40, 000. This tax structure is ..... A) Constant. B) Regressive. C) Progressive. D) Proportional. Show Answer Correct Answer: C) Progressive. 12. Bruno was given $ 2000 when he turned 3 years old. His parents invested it at a 2% interest rate compounded annually. No deposits or withdrawls were made. Which expression can be used to determine how much money Bruno had in the account when he turned 16? A) 2000(1+0.02)13. B) 2000(1-0.02)13. C) 2000(1+0.02)16. D) 2000(1-0.02)16. Show Answer Correct Answer: A) 2000(1+0.02)13. 13. Which of the following would be MOST LIKELY to increase aggregate demand? A) Increasing the discount rate. B) Decreasing government spending. C) Increasing consumer confidence. D) Declining consumer confidence. Show Answer Correct Answer: C) Increasing consumer confidence. 14. The relationship between quantity demanded of real GDP (AD) and the price level is ..... A) Positive. B) Negative. C) Constant. D) Linear. Show Answer Correct Answer: B) Negative. 15. On a micro graph, which of the following might cause supply to decrease? A) Productive resource costs greatly decrease. B) Taxes on businesses are greatly increased. C) Businesses have greater amounts of productive resources. D) Minimum Wage has been reduced. Show Answer Correct Answer: B) Taxes on businesses are greatly increased. 16. According to the wage-price spiral, if a company gives a worker a raise in pay, what must they also do? A) Raise the price of their products. B) Go out of business. C) Lower the price of their products. D) None of above. Show Answer Correct Answer: A) Raise the price of their products. 17. A country has a(n) ..... when the government lets the exchange rate go wherever the market takes it. A) Floating Exchange Rate. B) Exchange Rate Regime. C) Fixed Exchange Rate. D) None of above. Show Answer Correct Answer: A) Floating Exchange Rate. 18. When prices increase AD decreases because A) With higher prices exports increase. B) With higher prices imports increase. Show Answer Correct Answer: B) With higher prices imports increase. 19. Which of the following is true if there is a current account deficit in the United States balance-of payments accounts? A) There is a corresponding deficit in the financial account. B) There is a corresponding surplus in the financial account. C) There is an offsetting surplus in the government's budget. D) There is an offsetting increase in net exports. E) The United States dollar appreciates in the foreign exchange market. Show Answer Correct Answer: B) There is a corresponding surplus in the financial account. 20. Which of the following will occur if the price of steel decreases as a result of the discovery of new deposits of iron ore? A) Aggregate demand will increase. B) Aggregate demand will decrease. C) Aggregate supply will increase. D) Aggregate supply will decrease. E) There will be no change in aggregate demand or supply. Show Answer Correct Answer: C) Aggregate supply will increase. ← 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