This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Macroeconomics – Quiz 71 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 71 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. When the economy is experiencing an unemployment rate between 3-5%, an economist would say the economy is A) At full employment. B) On the cusp of a recession. C) Entering into inflation. D) At an unnatural rate. Show Answer Correct Answer: A) At full employment. 2. Macroeconomics focuses on the study of economics from the standpoint of ..... A) Individual economic units. B) A typical firm. C) A typical household. D) The entire economy. Show Answer Correct Answer: D) The entire economy. 3. When the price of Nike soccer balls fell, Ronaldo purchased more Nike soccer balls, and fewer Adidas soccer balls. Which of the following best explains Ronaldo's decision to buy more Nike soccer balls? A) The substitution effect. B) The income effect. C) An increase in the demand for Nike soccer balls. D) The price effect. Show Answer Correct Answer: A) The substitution effect. 4. Keynesian economics emphasize a key role in the economy for A) Free market forces. B) Supply side management. C) Fiscal Policy (Gov't intervention). D) Monetary Policy. Show Answer Correct Answer: C) Fiscal Policy (Gov't intervention). 5. Automatic stabilizers can do which of the following? A) Offset the destabilizing influence of changes in tax revenues. B) Aid the economy to move away from the full-employment output level. C) Allow policymakers to formulate a set of rules flexible and comprehensive enough to eliminate discretionary actions. D) Cause tax revenues to decrease when gross domestic product (GDP) decreases and to increase when GDP increases. E) Allow policy makers to prescribe public works programs during inflationary periods because expenditures for unemployment and welfare have correspondingly decreased. Show Answer Correct Answer: D) Cause tax revenues to decrease when gross domestic product (GDP) decreases and to increase when GDP increases. 6. How many types of balance of payment? A) 4. B) 2. C) 3. D) 1. Show Answer Correct Answer: C) 3. 7. Which of the following is contractionary policy? A) Buying bonds. B) Increasing fed fund rate. C) Decreasing discount rate. D) Decreasing required reserves. Show Answer Correct Answer: B) Increasing fed fund rate. 8. A labor force of 20 million people has 18.5 million people employed. Find the unemployment rate. A) 10%. B) 8.5%. C) 7.5%. D) 6%. Show Answer Correct Answer: C) 7.5%. 9. What term refers to a country that has accumulated annual deficits over the years plus any interest accrued on the money borrowed? A) Negative balance of payments. B) Federal deficit. C) National debt. D) Federal budget surplus. Show Answer Correct Answer: C) National debt. 10. What is true about aggregate demand? A) AD = C + I + G + X + M. B) AD = C-I-G-X-M. C) AD = C + I + G + (X + M). D) AD = C + I + G + (X-M). Show Answer Correct Answer: D) AD = C + I + G + (X-M). 11. Which policy would help fight unemployment? A) Expansionary. B) Contractionary. Show Answer Correct Answer: A) Expansionary. 12. Which of the following is a financial asset? A) Gold. B) Share. C) Silver. D) Land. Show Answer Correct Answer: B) Share. 13. If the Fed sells government securites, this ..... the money supply. A) Increases/expands. B) Decreases/contracts. C) Does not affect. D) Is in spite of. Show Answer Correct Answer: A) Increases/expands. 14. An individual has an ..... in producing a good or service if he or she can make more of it with a given amount of time and resources. A) Absolute Advantage. B) Comparative Advantage. C) Productive Efficiency. D) Allocative Efficiency. Show Answer Correct Answer: A) Absolute Advantage. 15. In the circular flow of income, government spending and exports are ..... A) Injections and leakages, respectively. B) Leakage and injections, respectively. C) Components of aggregate supply. D) Injections. Show Answer Correct Answer: D) Injections. 16. If the price of imported Canadian lumber increases A) AS shifts left (decrease). B) AS shifts right (increase). C) AD shifts left (decrease). D) AD shifts right (increase). Show Answer Correct Answer: A) AS shifts left (decrease). 17. To help maintain the health of the economy, ..... uses ..... policy by managing the money supply and interests rates. A) Congress, monetary. B) The Federal Reserve, monetary. C) Congress, fiscal. D) The Federal Reserve, fiscal. Show Answer Correct Answer: B) The Federal Reserve, monetary. 18. What group is in the middle of the Periodic Table? A) Metalloids. B) Post-Metals. C) Noble Gases. D) Transition Metals. Show Answer Correct Answer: D) Transition Metals. 19. Complete the Statement ..... refers to the phenomenon wherein the economic pie is not evenly distributed. A) Income inequality. B) Income equity. C) Income equality. D) Income inequity. Show Answer Correct Answer: A) Income inequality. 20. What is the difference between Final Goods and Services and Intermediate Goods and Services? A) Final goods and services are goods and services sold to the final, or end, user; intermediate goods and services are goods and services bought from one firm by another firm to be used as inputs into the production of final goods and services. B) Intermediate goods and services are goods and services sold to the final, or end, user; Final goods and services are goods and services bought from one firm by another firm to be used as inputs into the production of final goods and services. C) They are the same. D) None of above. Show Answer Correct Answer: A) Final goods and services are goods and services sold to the final, or end, user; intermediate goods and services are goods and services bought from one firm by another firm to be used as inputs into the production of final goods and services. ← 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