This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Macroeconomics – Quiz 70 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 70 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which group of people will suffer from unanticipated inflation? A) Borrowers. B) Savers. C) Lenders. D) Fixed Income. Show Answer Correct Answer: B) Savers. 2. Which area is NOT part of GDP: A) Consumer sector. B) Business Sector. C) Government Sector. D) Private Sector. Show Answer Correct Answer: D) Private Sector. 3. Something that efficiently functions as a medium of exchange, store of value, and unit of account, is considered ..... A) Money. B) Government bonds. Show Answer Correct Answer: A) Money. 4. If the demand for flat screen TV's increase when consumers income rise, then TV's are A) A normal good. B) An inferior good. C) A substitute good. D) A complement good. Show Answer Correct Answer: A) A normal good. 5. Which one of the following people would be classified as being in the labor force in the Eurostat classification? A) A 14-year old who delivers newspapers a few mornings per week. B) An individual serving in the Danish military. C) A 70-year old who is looking for part-time employment. D) A 40-year old who is not currently looking for work and is unable to work because of a recent injury. E) An individual in a prison who does some work in the prison library. Show Answer Correct Answer: C) A 70-year old who is looking for part-time employment. 6. All of the following might happen as a result of unanticipated inflation but ..... A) Borrowers using a fixed rate of interest will have to pay less back. B) Lenders who loan at a fixed rate will not gain as much profit. C) Lenders who lend at a variable rate will lose potential profit. D) Value of money will decrease. Show Answer Correct Answer: C) Lenders who lend at a variable rate will lose potential profit. 7. How many functions does Money need to preform? A) 1. B) 2. C) 3. D) 4. Show Answer Correct Answer: C) 3. 8. The American Red Cross is an example of a(n) ..... corporation. A) Hybrid. B) Nonprofit. C) S Corporation. D) C Corporation. Show Answer Correct Answer: B) Nonprofit. 9. You have the least amount of control over this since it is based on the ups and downs of the business cycle. A) Frictional unemployment. B) Seasonal unemployment. C) Cyclical unemployment. D) Structural unemployment. Show Answer Correct Answer: C) Cyclical unemployment. 10. Productivity is defined as the A) Amount of goods and services produced from each unit of labor unit. B) Number of workers required to produce a given amount of goods and services. C) Amount of labor that can be saved by replacing workers with machines. D) Actual amount of effort workers put into an hour of working time. E) Amount of capital that can be saved by replacing machines with workers. Show Answer Correct Answer: A) Amount of goods and services produced from each unit of labor unit. 11. When computing the opportunity cost of attending a concert you should include: A) The price you pay for the ticket and the value of your time. B) The price you pay for the ticket, but not the value of your time. C) The value of your time, but not the price of the ticket. D) Neither the price of the ticket nor the value of your time. Show Answer Correct Answer: A) The price you pay for the ticket and the value of your time. 12. What are M1 and M2? A) Fiat money. B) Specie. C) Currency. D) Money supplies. Show Answer Correct Answer: D) Money supplies. 13. Ratio of change in total consumption to the change in total income. A) Average Propensity to Consume (APC). B) Marginal Propensity to Consume (MPC). C) Average Propensity to Savings (APS). D) Marginal Propensity to Savings (MPS). Show Answer Correct Answer: B) Marginal Propensity to Consume (MPC). 14. If Net investment in 2013 is $ 200 billion and gross investment in 2013 is $ 238 billion. The depreciation in 2013 is ..... A) 38 billion. B) 438 billion. C) 38 million. D) 438 million. Show Answer Correct Answer: A) 38 billion. 15. If the MPC is.7 and gross investment spending increase by $ 3 billion, GDP will A) Increase by $ 10 billion. B) Increase by 2.1 billion. C) Decrease by $ 4.29 billion. D) Increase by $ 4.29 billion. Show Answer Correct Answer: A) Increase by $ 10 billion. 16. Which of the following is true about the natural rate of unemployment? A) It can vary over time. B) It is 2 percent orless of the civilian laborforce. C) It is equal to the structural unemployment rate. D) It allows for some frictional and cyclical unemployment. Show Answer Correct Answer: A) It can vary over time. 17. The consumer price index is used to? A) Monitor changes in the level of real GDP. B) Track changes in the stock market. C) Track changes in the level of wholesale prices in the economy. D) Monitor changes in the cost of living. Show Answer Correct Answer: D) Monitor changes in the cost of living. 18. A large decline in household income will increase Demand. A) True. B) False. Show Answer Correct Answer: B) False. 19. GDP is the total market value of: A) All expenditures on natural resources, labor, and capital goods in an economy in a given year. B) All expenditures on consumption, investment, and net exports in an economy in a given year. C) All intermediate goods and services produced in an economy in a given year. D) All final goods and services produced within a nation's borders in a given year. Show Answer Correct Answer: D) All final goods and services produced within a nation's borders in a given year. 20. An economy in which production, investment, prices, and incomes are determined centrally by a government. A) Market Economy. B) Mixed Economy. C) Traditional Economy. D) Command Economy. Show Answer Correct Answer: D) Command Economy. ← 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