This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Macroeconomics – Quiz 62 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 62 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Some businesses are not organized to maximize profits. Instead their goals are to work for the good of all their members or to work for the good of society. This describes A) Franchises and multinationals. B) Cooperatives and nonprofits. C) General and limited partnerships. D) Horizontal and vertical mergers. Show Answer Correct Answer: B) Cooperatives and nonprofits. 2. What is a recession? A) The accumulation of government deficits over the years. B) The highest point of Real GDP. C) The lowest point of Real GDP. D) A period of falling Real GDP for at least 6 months. Show Answer Correct Answer: D) A period of falling Real GDP for at least 6 months. 3. The effect of expansionary monetary policy is a /n ..... A) Increase in interest rate. B) Decrease in interest rate. C) Increase in government spending. D) Decrease in government spending. Show Answer Correct Answer: B) Decrease in interest rate. 4. C= 500 + 0.5 Y based on equation above, the value marginal propensity of consume is ..... A) 1. B) 500. C) 0.8. D) 0.5. Show Answer Correct Answer: D) 0.5. 5. According to the Phillips curve, there is A) A trade-off in inflation and unemployment in the short run, but not the long run. B) A trade-off in inflation and unemployment in both short and long run. C) No trade-off in inflation and unemployment in both short and long run. D) A trade-off in inflation and unemployment in the long run, but not the short run. Show Answer Correct Answer: A) A trade-off in inflation and unemployment in the short run, but not the long run. 6. A government tax on imports or exports A) Cash money. B) Tariff. C) Tax. D) Charge. Show Answer Correct Answer: B) Tariff. 7. Policies to increase competitiveness and competition. For example, privatisation, deregulation, lower income tax rates, and reduced power of trade unions A) Fiscal policy. B) Monetary policy. C) Supply-side policies (free market). D) Supply-side policies (interventionist). Show Answer Correct Answer: C) Supply-side policies (free market). 8. Investments are Injections into the circular flow. A) True. B) False. Show Answer Correct Answer: A) True. 9. When an individual decides to hold money instead of other assets: A) That individual is giving up the interest that could have been earned by holding other types of assets. B) That individual becomes more likely to suffer from money illusion. C) That individual is not affected by unanticipated inflation. D) That individual is able to maintain a higher standard of living. E) That individual is investing in illiquid assets. Show Answer Correct Answer: A) That individual is giving up the interest that could have been earned by holding other types of assets. 10. An example of a regressive tax is: A) Income tax. B) Property tax. C) Sales tax. D) Licensing fees. Show Answer Correct Answer: C) Sales tax. 11. The multiplier is: A) 1/MPC. B) 1/1+MPC. C) 1/MPS. D) 1/1-MPS. Show Answer Correct Answer: C) 1/MPS. 12. Which of the following describes scarcity? A) Wants are limited. B) Resources are fully employed. C) Wants exceed resources. D) Resources are unlimited. Show Answer Correct Answer: C) Wants exceed resources. 13. To find real GDP economists measure the factors of GDP such as net exports to adjust for ..... A) Deflation. B) Inflation. C) Trough. D) Peak. Show Answer Correct Answer: B) Inflation. 14. When the skills of workers do not match the jobs that are available, this is: A) Seasonal Unemployment. B) Cyclical Unemployment. C) Frictional Unemployment. D) Structural Unemployment. Show Answer Correct Answer: D) Structural Unemployment. 15. If fiscal policy is used to influence the economy, this could involve changing A) The rate of interest. B) The amount of money in circulation. C) The budget deficit. D) The balance of payments. Show Answer Correct Answer: C) The budget deficit. 16. Structural unemployment is most likely to occur because of A) Labour being temporarily unemployed when moving between jobs. B) Fluctuations in the level of aggregate demand. C) The seasonal nature of certain occupations. D) Long-term changes in the pattern of demand for the products of particular industries. Show Answer Correct Answer: D) Long-term changes in the pattern of demand for the products of particular industries. 17. Inflation is measured by ..... A) Consumer Price Index (CPI). B) Gross National Product (GNP). C) Gross Domestic Product (GDP). D) Securities & Exchange Commission (SEC). Show Answer Correct Answer: A) Consumer Price Index (CPI). 18. How are closely held and publicly held corporations different A) Only publicly held corporations issue stock. B) Only closely held corporations trade stock on the NY stock exchange. C) Anyone can buy publicly held corporation stock but not closely held stock. D) None of above. Show Answer Correct Answer: C) Anyone can buy publicly held corporation stock but not closely held stock. 19. National debt is different from the government deficits in that A) Deficits include all debts owed over time with interest. B) Deficits only apply to monetary decisions made by Congress. C) National debt is the sum of all past deficits plus interest. D) The debt only includes money owed for the current fiscal year. Show Answer Correct Answer: C) National debt is the sum of all past deficits plus interest. 20. All of the following will likely trigger increases in output except: A) Increase in labor force. B) Increase in labor productivity. C) Increase in consumer spending. D) Increase in Interest rates. Show Answer Correct Answer: D) Increase in Interest rates. ← 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