This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Macroeconomics – Quiz 73 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 73 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Kurt runs his own business producing music and selling it online. How would he be categorized by the BLS? A) Employed. B) Unemployed. C) Underemployed. D) Not in the Labor Force. Show Answer Correct Answer: A) Employed. 2. When a period of steady work is followed by a period of unemployment each year, this is: A) Seasonal Unemployment. B) Cyclical Unemployment. C) Frictional Unemployment. D) Structural Unemployment. Show Answer Correct Answer: A) Seasonal Unemployment. 3. If the dollar changes from 100 to 80 per dollar against the Japanese yen, the dollar will strengthen. A) True. B) Lie. Show Answer Correct Answer: B) Lie. 4. What is the equation for calculating GDP using the expenditures approach? A) C + I + G + Xn. B) Wages + Rent + Interest + Profit. C) Value added at each stage of production. D) Exports-Imports. Show Answer Correct Answer: A) C + I + G + Xn. 5. What is the equilibrium level of output? A) The equilibrium level of output is the level at which aggregate demand equals aggregate supply. B) The equilibrium level of output is the level at which aggregate demand exceeds aggregate supply. C) The equilibrium level of output is the level at which aggregate supply exceeds aggregate demand. D) The equilibrium level of output is the level at which there is no aggregate demand or supply. Show Answer Correct Answer: A) The equilibrium level of output is the level at which aggregate demand equals aggregate supply. 6. Which sector describes businesses who create products? A) Households. B) Firms. C) Product Market. D) Factor Market. Show Answer Correct Answer: B) Firms. 7. Which of the following is a market-based supply-side policy designed to reduce the level of unemployment? A) A cut in interest rates to stimulate economic growth in the economy. B) A rise in the budget for unemployment benefits. C) A cut in the basic rate of personal income tax. D) Abolishing the minimum wage in an attempt to create incentives to work. Show Answer Correct Answer: C) A cut in the basic rate of personal income tax. 8. What is a mixed command economy? A) A command economy with some market elements. B) A market economy with some command elements. Show Answer Correct Answer: A) A command economy with some market elements. 9. An economic model illustrating how economic activity fluctuates over time. A) Circular Flow. B) Business Cycle. Show Answer Correct Answer: B) Business Cycle. 10. A binding price ceiling line is ..... the market equilibrium point. A) Below. B) Above. C) To the right of. D) To the left of. Show Answer Correct Answer: A) Below. 11. NIT= A) INDIRECT TAX+SUBSIDIES. B) INDIRECT TAX+DEPRECIATION. C) INDIRECT TAX-SUBSIDIES. D) None of above. Show Answer Correct Answer: C) INDIRECT TAX-SUBSIDIES. 12. Which of the following is NOT a mandatory spending item in the government's budget? A) Social Security. B) Medicare. C) Interest payments on debt. D) Defense. Show Answer Correct Answer: D) Defense. 13. Research & Development leads to new inventions and innovations that will later on lead to efficiency in trade between nations. A) True. B) False. Show Answer Correct Answer: B) False. 14. Net national product does not include ..... A) Interest on consumer loans. B) Undistributed corporate profit. C) Taxes on corporate profits. D) Depreciation. Show Answer Correct Answer: D) Depreciation. 15. Which is an example of things that would be listed in a "market basket." A) Car. B) Salmon. C) Bread. D) Xbox. Show Answer Correct Answer: C) Bread. 16. There are 6 American Made car manufacturers in the United States. What type of market structure does this represent? A) Monopoly. B) Oligopoly. C) Pure competition. D) Monolistic competition. Show Answer Correct Answer: B) Oligopoly. 17. Which part of the business cycle is characterized by high unemployment rates and a falling economy? A) Peak. B) Expansion. C) Trough. D) None of above. Show Answer Correct Answer: C) Trough. 18. What is the labor force participation rate? A) The percentage of the total population that is employed. B) The percentage of the labor force that is unemployed. C) The percentage of the total population that is in the labor force. D) The percentage of the labor force that is not in the labor force. Show Answer Correct Answer: C) The percentage of the total population that is in the labor force. 19. In this context, "labor released " is best characterized as: A) Seasonal unemployment. B) Structural unemployment. C) Frictional unemployment. D) Cyclical unemployment. Show Answer Correct Answer: B) Structural unemployment. 20. When there is deflation in the economy: A) The general price level becomes negative. B) The nominal interest rate rises. C) The general price level increases. D) The general price level falls. Show Answer Correct Answer: D) The general price level falls. ← 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