This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Macroeconomics – Quiz 65 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 65 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Macroeconomics study the..... A) Demand and supply of the individual economic. B) Aggregate demand of the entire economic. C) Aggregate demand and aggregate supply of the entire economic. D) Aggregate supply of the entire economic. Show Answer Correct Answer: C) Aggregate demand and aggregate supply of the entire economic. 2. The purpose of monetary policy is to maintain the overall price level and to achieve higher economic growth. A) TRUE. B) FALSE. Show Answer Correct Answer: A) TRUE. 3. Real exchange rate = A) Relative price of domestic goods in terms of foreign goods. B) Relative price of foreign goods in terms of domestic goods. Show Answer Correct Answer: A) Relative price of domestic goods in terms of foreign goods. 4. Web-based advertising has drawn advertisers away from newspaper ads, what type of unemployment? A) Frictional. B) Structural. C) Cyclical. D) Seasonal. Show Answer Correct Answer: B) Structural. 5. Which of the following is most likely to cause a leftward shift in the long-run aggregate supply curve? A) A decrease in the wage rate. B) A decrease in short-run aggregate supply. C) Contractionary fiscal policy. D) A permanent decrease in the size of the labor force. E) A long-term decrease in demand. Show Answer Correct Answer: D) A permanent decrease in the size of the labor force. 6. How can a budget deficit negatively impact the US? A) It would increase US GDP. B) It would increase US Real GDP. C) It would increase economic growth. D) It would increase US federal debt. Show Answer Correct Answer: D) It would increase US federal debt. 7. The ..... model relates the monetary policy. A) LM. B) IS. C) ML. D) SI. Show Answer Correct Answer: A) LM. 8. Consumer durable goods are those goods that are expected to last longer than ..... A) Three months. B) Six months. C) One year. D) Three years. E) Five years. Show Answer Correct Answer: C) One year. 9. Nominal wage A) "money wage" = money you're paid by an employer for your labor. not adjusted for inflation. B) The claim that, other things being equal, the quantity demanded of a good falls when the price of the good rises. C) The claim that, other things equal, the quantity supplied of a good rises when the price of the good risesany resources used to create goods and services. Examples of inputs include labor (workers' time), fuel, materials, buildings, and equipment. D) Any resources used to create goods and services. Examples of inputs include labor (workers' time), fuel, materials, buildings, and equipment. Show Answer Correct Answer: A) "money wage" = money you're paid by an employer for your labor. not adjusted for inflation. 10. The resources such as labor, material, and machinery that are used to produce goods and services; also called inputs A) Expenses. B) Factors of Production. C) Input. D) Output. Show Answer Correct Answer: B) Factors of Production. 11. Unemployed who are looking for better working conditions, or seeking a higher wage. A) Cyclical. B) Seasonal. C) Frictional. D) Structural. Show Answer Correct Answer: C) Frictional. 12. Which sector has the largest share in polish GDP? A) Services. B) Industry. C) Agriculture. D) Construction. Show Answer Correct Answer: A) Services. 13. Ibn Khaldun's view is that the wealth of a country is determined by the amount of money it has. It is not determined by how much the country's ability to produce goods and services. The statement above is..... A) Correct. B) Salah. Show Answer Correct Answer: B) Salah. 14. What is the difference between a fixed and a floating exchange rate? A) A fixed exchange rate is set by the monetary authority with respect to a foreign currency or a basket of foreign currencies, a floating exchange rate is determined in foreign exchange markets depending on demand and supply, and it generally fluctuates constantly. B) There is no difference between them, both determined by the central bank. C) A fixed exchange rate is better than the floating exchange rate in determining the exchange rate of a particular country's currency. D) All of the answers above. Show Answer Correct Answer: A) A fixed exchange rate is set by the monetary authority with respect to a foreign currency or a basket of foreign currencies, a floating exchange rate is determined in foreign exchange markets depending on demand and supply, and it generally fluctuates constantly. 15. Which of the following individuals is considered officially unemployed? A) Chris, who has not worked for more than three years and has given up looking for work. B) Kim, who is going to school full-time and is waiting until graduation before looking for a job. C) Pat, who recently left a job to look for a different job in another town. D) Leslie, who retired after turning 65 only five months ago. E) Lee, who is working 20 hours per week and is seeking full-time employment. Show Answer Correct Answer: C) Pat, who recently left a job to look for a different job in another town. 16. A ..... supply shock shifts the aggregate supply curve to the left, while a ..... supply shock shifts the aggregate supply curve to the right. A) Negative; negative. B) Negative; positive. C) Positive; negative. D) Positive; positive. Show Answer Correct Answer: B) Negative; positive. 17. The opportunity cost of a choice is the value of the best alternative forgone. A) True. B) Flase. Show Answer Correct Answer: A) True. 18. Suppose a panel of economists is predicting that a nation's real GDP per capita will double in approximately 10 years. Based upon the Rule of 70, what must be the predicted annual growth rate of real GDP per capita? A) 140%. B) 7%. C) 2.85%. D) 14%. E) 5%. Show Answer Correct Answer: B) 7%. 19. The federal government redistributes income primarily by A) Setting up planning commissions to set wage rates. B) Taxing different income levels at different rates. C) Guaranteeing every person a minimum income through minimum-wage laws. D) Providing the same goods and services to all citizens. E) Relocating and retraining structurally unemployed people. Show Answer Correct Answer: B) Taxing different income levels at different rates. 20. The following are macroeconomics objectives, EXCEPT ..... A) Price stability. B) Full employment. C) High economic growth. D) Unjust distribution of income. Show Answer Correct Answer: D) Unjust distribution of income. ← 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