This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Macroeconomics – Quiz 74 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 74 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What the definition of deflation? A) Decrease in the average price of goods and services. B) Occurs when the price of goods and services rise. C) Increase in prices. D) I don't know. Show Answer Correct Answer: A) Decrease in the average price of goods and services. 2. Monetary value of what households spend on final goods and services in the product market in a given time period. A) Consumer Spending. B) Investment. C) Government Spending. D) Net Exports. Show Answer Correct Answer: A) Consumer Spending. 3. Will the following scenario affect the current account or capital account, and will the transaction be a debit or credit? An American working in Saudi Arabia sends his wife, who lives in Atlanta, money so she can buy a new car. A) Current account; debit. B) Current account; credit. C) Capital account; debit. D) Capital account; credit. Show Answer Correct Answer: B) Current account; credit. 4. What is the size of the Labor Force? Unemployed (Looking for job) = 20 Retired = 5 Prison = 2 School = 10 Employed = 180 Unemployed (not looking for job) = 20 A) 180. B) 200. C) 220. D) 237. Show Answer Correct Answer: B) 200. 5. Karl Marx is considered the "father" of what Economic and Political system? A) Communism. B) Socialism. C) Capitalism. D) Traditional Economy. Show Answer Correct Answer: A) Communism. 6. Consumer spending, business investments, government spending, net exports Government expenditures that exceed government revenue in a fiscal year is called? A) Deficit. B) Inflation. C) Monetary Policy. D) Gross Domestic Product. Show Answer Correct Answer: D) Gross Domestic Product. 7. Contractionary fiscal policy can be carried out through A) Increasing government expenditure. B) Decreasing taxes. C) Increasing taxes. D) Maintaining government expenditure. Show Answer Correct Answer: C) Increasing taxes. 8. Macroeconomics is concerned with all the following EXCEPT ..... A) The growth of real output. B) The general level of prices. C) The level of unemployment. D) Production methods and cost. Show Answer Correct Answer: D) Production methods and cost. 9. Which of the following is not a qualitative monetary policy? A) Selective credit control. B) Moral persuasion. C) Special directive. D) Raising discount rate operations. Show Answer Correct Answer: D) Raising discount rate operations. 10. It is the decrease in the general level of prices of basic commodities. A) Inflation. B) Deflation. C) Stagflation. D) Stagnation. Show Answer Correct Answer: B) Deflation. 11. The three main factors of production are: A) School, work, and retirement. B) Land, labor, and capital. C) Economy, specialization, and trade. D) Goods, services, and people. Show Answer Correct Answer: B) Land, labor, and capital. 12. The problem of how to produce means ..... A) Selection of goods to be produced. B) Selection of category of people who use the goods. C) Selection of method of production. D) None of above. Show Answer Correct Answer: C) Selection of method of production. 13. What are the two types of wealth according to Dusenberry? A) Physical and social. B) Measured and non-measured. C) Human and non-human. D) None of these. Show Answer Correct Answer: C) Human and non-human. 14. A Decline In The Value Of Money Called? A) Inflation. B) Deflation. C) Aggregate Expenditure. D) Interest Rates. Show Answer Correct Answer: A) Inflation. 15. Who owns the factors of production in a free market, or capitalist, economy? A) Individuals. B) Government. C) Classes. D) Oligarchs. Show Answer Correct Answer: A) Individuals. 16. Gross Domestic Product measures the A) Quantity of the goods and services produced in a given year, listed item by item, within a country. B) Market value of the final goods and services produced in a given year within a country. C) Measures the market value of the domestic labor in a given year within a country. D) Market value of the final goods and services consumed by households in a given year within a country. Show Answer Correct Answer: B) Market value of the final goods and services produced in a given year within a country. 17. Using 2010 as the base year, the gross domestic product deflator in 2011 was 97. Which of the followingmust be true? A) The inflation rate in 2011 was positive. B) The inflation rate in 2011 was negative. C) The inflation rate in 2011 was zero. D) The purchasing power of a dollar decreased by 3 percent. E) The real output increased by 3 percent. Show Answer Correct Answer: B) The inflation rate in 2011 was negative. 18. What is an example of a pair of goods that are substitutes, and an example of a pair of goods that are complements? A) Khakis and Jeans; Cars and Gasoline. B) Cars and Gasoline; Khakis and Jeans. C) Cookies and Milk; Muffins and Donuts. D) None of above. Show Answer Correct Answer: A) Khakis and Jeans; Cars and Gasoline. 19. An increase in the value of a currency as measured by the amount of foreign currency that can be purchased is called..... A) Depreciation. B) Nominal exchange rate. C) Appreciation. D) Real exchange rate. Show Answer Correct Answer: C) Appreciation. 20. Choose which equation is correct about money supply? A) M2 or Current money = M1+ REPOs. B) M2 or Current money = Paper currency +Quasi Money/ Near money. C) M2 or Current money = M1 +Quasi Money/ Near money. D) M2 or Current money = M1 + Fixed deposits in other banking institution. Show Answer Correct Answer: C) M2 or Current money = M1 +Quasi Money/ Near money. ← 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