This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Macroeconomics – Quiz 69 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 69 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Under a ..... tax system, individuals and entities with low incomes pay a higher amount of that income in taxes compared to high-income earners. A) Regressive. B) Progressive. C) Proportional. D) Flat. Show Answer Correct Answer: A) Regressive. 2. National Saving adalah A) S=I. B) S=Y-T-C. C) S=(Y-T-C)+(T-G). D) S=T-G. Show Answer Correct Answer: C) S=(Y-T-C)+(T-G). 3. Higher taxes have reduced disposable income in Fredland.What happens to household savings and the real interest rate in the short run, and potential output in the long run? A) Household saving increases; the real interest rate decreases, and potential output increases. B) Household saving decreases; the real interest rate decreases, and potential output increases. C) Household saving decreases; the real interest rate decreases, and potential output increases. D) Household saving decreases; the real interest rate increases, and potential output decreases. E) Household saving increases; the real interest rate decreases, and potential output is unaffected. Show Answer Correct Answer: D) Household saving decreases; the real interest rate increases, and potential output decreases. 4. The main advantage of mutual funds is that they provide ..... A) A way to avoid fluctuations in stock and bond prices. B) An easy way to hold a diversified portfolio. C) A return insured by the government. D) An asset that is widely used as the medium of exchange. Show Answer Correct Answer: B) An easy way to hold a diversified portfolio. 5. M1 money supply in Malaysia consists of ..... A) Coins and bank notes. B) Currency in circulation and current deposits. C) Coins, paper money and saving deposits. D) Currency in circulation, savings deposit and time deposits. Show Answer Correct Answer: C) Coins, paper money and saving deposits. 6. The ..... measures the prices of goods and services purchased by producers. A) Producer Price Index (PPI). B) Consumer Price Index (CPI). C) Aggregate Price Level. D) Inflation Rate. Show Answer Correct Answer: A) Producer Price Index (PPI). 7. Which of the following choices is most likely to create a rightward shift of the production possibilities curve? A) Higher consumer spending. B) Contractionary fiscal policy. C) Expansionary fiscal policy. D) Instability in financial markets. E) Greater investments in human capital. Show Answer Correct Answer: E) Greater investments in human capital. 8. In the short run, an increase in a government budget deficit is most likely to reduce A) Imports. B) Unemployment. C) Interest rates. D) Inflation. Show Answer Correct Answer: B) Unemployment. 9. During an economic recession, how would the United States Federal Reserve alter their monetary policy? A) The Fed would buy bonds from investors. B) The Fed would increase the discount rate on loans. C) The Fed would raise the reserve requirement for banks. D) The Fed would wait for the Secretary of the Treasury to make the decision. Show Answer Correct Answer: A) The Fed would buy bonds from investors. 10. The national security argument for tariff protection is based on the need to: A) Trade only with other friendly countries and impose tariffs on the rest. B) Protect employment in key industries. C) Protect defence-related industries in case of war. D) Raise money to field a sufficiently large army. Show Answer Correct Answer: C) Protect defence-related industries in case of war. 11. The sum of all incomes of the people of a country is called A) National Income. B) GDP. Show Answer Correct Answer: A) National Income. 12. An economy based on free markets with limited government interference. A) Capitalism. B) Communism. C) Command economy. D) Traditional economy. Show Answer Correct Answer: A) Capitalism. 13. Is labor scarce?-J A) Yes. B) No. Show Answer Correct Answer: A) Yes. 14. Which model encourages demand-side policies A) Keynesian. B) New Classical. C) Modern. D) Demand-oriented. Show Answer Correct Answer: A) Keynesian. 15. Which of the following would NOT increase a nation's Potential GDP? A) A better educated and trained labor force. B) The discovery of new natural resources. C) A plague that reduces the population. D) Investment in capital resources. Show Answer Correct Answer: C) A plague that reduces the population. 16. What is it called when all or most of the people who are willing and able to work are actually working? A) Partial Employment. B) Low Unemployment. C) Full Employment. D) Employment. Show Answer Correct Answer: C) Full Employment. 17. The federal government uses government spending and tax rates to help control recessions and encourage economic activity. This is called A) Fiscal policy. B) Monetary policy. C) Supply-side economics. D) Open market operations. Show Answer Correct Answer: A) Fiscal policy. 18. Which of the following flows is not a Withdrawal? A) Taxes. B) Savings. C) Export Receipts. D) Import Payments. Show Answer Correct Answer: C) Export Receipts. 19. Economists use the term "Land" to refer to all sorts of natural resources. Which of the following resources fit into this category? A) Land. B) Lumber. C) Oil. D) All of the Above. Show Answer Correct Answer: D) All of the Above. 20. Policy that seeks to encourage economic growth or combat inflationary price increases by expanding the money supply, lowering interest rates, increasing gov't. spending or cutting taxes A) Budget Deficit. B) Reserve Requirement. C) Proportional Tax. D) Expansionary Policy. Show Answer Correct Answer: D) Expansionary Policy. ← 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