This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Macroeconomics – Quiz 63 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 63 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The most common form of business organization in the United States is: A) Limited Partnership. B) Sole Proprietorship. C) Corporation. D) General Partnership. Show Answer Correct Answer: B) Sole Proprietorship. 2. What would MOST LIKELY happen if the Federal Reserve decided to increase the reserve requirement in banks? A) The amount of federal taxes people owe would decrease. B) The amount of federal taxes people owe would increase. C) The amount of money circulating in the economy would decrease. D) The amount of money circulating in the economy would increase. Show Answer Correct Answer: C) The amount of money circulating in the economy would decrease. 3. Lower marginal tax rates stimulate people to work, save, and invest, resulting in more output and a larger tax base. This statement most closely reflects which of the following views? A) The Keynesian view. B) The multiplier view. C) The aggregate demand theory. D) The supply-side view. Show Answer Correct Answer: D) The supply-side view. 4. In an economy, no one can be made better off without making someone else worse off. What does not necessarily follow from this? A) The conditions for allocative efficiency have been met. B) The conditions for productive efficiency have been met. C) The distribution of income is socially acceptable. D) The economy is operating at a point on its production possibility frontier. Show Answer Correct Answer: C) The distribution of income is socially acceptable. 5. When banks borrow money from the Federal Reserve, these funds are called A) Discount loans. B) Federal funds. C) Federal loans. D) Treasury funds. Show Answer Correct Answer: A) Discount loans. 6. How do the government injects money back to the circular flow? A) Infrastructure projects and the needs of government offices. B) Construct hospitals in provinces. C) Construct buildings and schools. D) None of above. Show Answer Correct Answer: A) Infrastructure projects and the needs of government offices. 7. A decrease in the overall price level. A) Deflation. B) Inflation. C) Hyperinflation. D) Hypoinflation. Show Answer Correct Answer: A) Deflation. 8. Mark is refinishing an antique china cabinet and has already spent $ 180 on the restoration. He expects to be able to sell the cabinet for $ 360. Mark discovers that he needs to do an additional $ 200 of work to make the cabinet worth $ 360 to potential buyers. He could also sell the cabinet now, without completing the additional work, for $ 100. What should he do? A) He should sell the cabinet now for $ 100. B) He should keep the cabinet since it wouldn't be rational to spend $ 380 restoring a cabinet and then selling it for only $ 360. C) He should complete the additional work and sell the cabinet for $ 360. D) It does not matter which action he takes since the outcome will be the same either way. Show Answer Correct Answer: C) He should complete the additional work and sell the cabinet for $ 360. 9. Complements in production A) The quantity of a good or service that consumers are willing and able to buy. B) Complements = goods that you purchase together.Example:peanut butter & jellyMilk & Cereal, Chips & SalsaSubstitutes = goods that you instead of each otherExamples:Coke & Pepsi, Gatorade & PowerAde. C) Resources are of equal quality and equally suited for the production of both commoditiesthe quantity of a good or service that consumers are willing and able to buy. D) Goods that are produced as by-products from producing another good. Show Answer Correct Answer: D) Goods that are produced as by-products from producing another good. 10. You read in the newspaper that the CPI in 2008 was 120, you will conclude that a typical market basket in 2008 would have cost A) 120 percent more than the same market basket purchased in 2007. B) 20 percent more than the same market basket purchased in the base year. C) 20 percent less than the same market basket purchased in the base year. D) 20 percent more than the same market basket purchased in 2007. Show Answer Correct Answer: B) 20 percent more than the same market basket purchased in the base year. 11. Which of this is not a MACROECONOMICS variable A) Inflation. B) Unemployment. C) Interest rate. D) Household goods. Show Answer Correct Answer: D) Household goods. 12. Workers DO NOT have transferable skills and these jobs won't come back A) Structural Unemployment. B) Frictional Unemployment. C) Cyclical Unemployment. D) None of above. Show Answer Correct Answer: A) Structural Unemployment. 13. What does the (X-M) mean in the expenditure model for GDP? A) Income-Taxes. B) Taxes-Imports. C) Spending Exports. D) Exports-Imports. Show Answer Correct Answer: D) Exports-Imports. 14. Advantages include limited liability for owners, unlimited life, and ease of transfer of ownership. A) Sole Propriotorship. B) Partnership. C) Corporation. D) None of above. Show Answer Correct Answer: C) Corporation. 15. Net EXPORT is X-M. What is M? A) IMPORT. B) EXPORT. Show Answer Correct Answer: A) IMPORT. 16. Progressive tax is one in which A) Lower income pays more. B) People of all incomes pay the same. C) Higher income pays a higher percentage. D) No tax. Show Answer Correct Answer: C) Higher income pays a higher percentage. 17. What usually determines what is produced in a market economy? A) What people need and want. B) What government leaders decide should be produced. Show Answer Correct Answer: A) What people need and want. 18. Under a fixed system, the exchange rate: A) Fluctuates in response to changing economic conditions. B) Is maintained at a predetermined level by the central bank. C) Is changed at regular intervals by the central bank. D) Fluctuates in response to changes in the price of gold. Show Answer Correct Answer: B) Is maintained at a predetermined level by the central bank. 19. Entrepreneurs are ..... A) People with all their efforts and abilities. B) Individuals who start a new business or bring a product to market. C) The "gifts of nature" or natural resources not created by human effort. D) The tools, equipment, and factories used in production of goods and services. Show Answer Correct Answer: B) Individuals who start a new business or bring a product to market. 20. What would be the effect of an increase in imports? A) An increased level of AD. B) A decreased level of AD. C) An increased level of SRAS. D) A decreased level of SRAS. Show Answer Correct Answer: B) A decreased level of AD. ← 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