This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Macroeconomics – Quiz 75 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 75 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of the following MOST helps to distinguish the national debt from federal deficits? A) The debt grows as the deficit shrinks over time. B) Deficits grow when the government fails to repaythe debt. C) The debt grows as funds are borrowed to make up for deficits. D) Deficits grow mainly as a result of spending to service the debt. Show Answer Correct Answer: C) The debt grows as funds are borrowed to make up for deficits. 2. What is national debt? A) The accumulation of government deficits over the years. B) The total debt of all individuals in the country. C) The debt owed by foreign countries to the United States. D) The debt owed by the United States to foreign countries. Show Answer Correct Answer: A) The accumulation of government deficits over the years. 3. A good in which quantity demanded rises as income rises, and in which quantity falls as income falls ex:Jewelry, Essentials Hoodies, DopeBoy Intramural Clothing Line Lobster, The Finer Things A) Normal good. B) Inferior good. C) Complement good. D) Substitute good. Show Answer Correct Answer: A) Normal good. 4. If the government takes an expansionary fiscal policy, where it kickstarts the economy to fight off recession, they might ..... A) Eliminate taxation and spending. B) Increase spending and taxation. C) Increase taxation and decrease spending. D) Increase spending and decrease taxation. Show Answer Correct Answer: D) Increase spending and decrease taxation. 5. Which type of goods are used to help produce other goods? R A) Consumer goods. B) Entrepreneurship goods. C) Capital goods. D) Labor force. Show Answer Correct Answer: C) Capital goods. 6. Real GDP growth always increases real GDP per capita. A) True. B) Lie. Show Answer Correct Answer: B) Lie. 7. Labor productivity is measured as: A) Dollar value of output per unit of labor. B) Output per labor-hour. C) Hourly wage rate divided by output per labor-hour. D) Dollar value of inputs per unit of output. Show Answer Correct Answer: B) Output per labor-hour. 8. If the required reserve ratio is 0.20 and the Federal Reserve buys $ 200 worth of securities, the maximum increase in the money supply will be A) $ 200. B) $ 400. C) $ 600. D) $ 800. E) $ 1000 . Show Answer Correct Answer: E) $ 1000 . 9. If the federal government has a budget deficit and enacts expansionary fiscal policy, then A) The demand for loans shifts to the left. B) The demand for loans shifts to the right. C) The supply of loanable funds shifts to the right. D) The supply of loanable funds shifts to the left. Show Answer Correct Answer: B) The demand for loans shifts to the right. 10. What factors affect aggregate supply? A) Changes in labor force, changes in technology, changes in capital stock, changes in government regulations, and changes in productivity. B) Changes in population, changes in income levels, changes in consumer preferences, changes in business expectations. C) Changes in consumer spending, changes in government spending, changes in taxes, changes in imports and exports. D) Changes in demand, changes in interest rates, changes in inflation, changes in exchange rates. Show Answer Correct Answer: A) Changes in labor force, changes in technology, changes in capital stock, changes in government regulations, and changes in productivity. 11. Supply A) A curve that shows the relationship between the price of a product and the quantity of the product supplied. B) The quantity of something that producers have available for sale. C) The action of buying and selling goods and services. D) Human and physical. Show Answer Correct Answer: A) A curve that shows the relationship between the price of a product and the quantity of the product supplied. 12. Which of the following is an effect of deflation? A) Decrease in unemployment. B) Reduction in production. C) Increase in production. D) Increased spending on goods and services. Show Answer Correct Answer: B) Reduction in production. 13. How would strike positively affect workers? A) It would "force" employers to accept a "reasonable" proposition by employees. B) It would allow them to get back their old position without a decrease in a positive employee and employer relationship bond. C) Both parties lose money because of delayed service and loss of production time. D) None of above. Show Answer Correct Answer: A) It would "force" employers to accept a "reasonable" proposition by employees. 14. The study of a single factor of an economy-such as individuals, households, businesses, rather than the economy as a whole. A) Scarcity. B) Microeconomics. C) Macroeconomics. D) None of above. Show Answer Correct Answer: B) Microeconomics. 15. A general increase in prices is called A) Inflation. B) Purchasing power. C) The CPI. D) A price index. Show Answer Correct Answer: A) Inflation. 16. Most government spending is geared towards what? A) Defense. B) Social Security. C) Education. D) Energy. Show Answer Correct Answer: B) Social Security. 17. The weight of a dinar is equivalent to gold..... grams. A) 4, 05. B) 4, 15. C) 4, 25. D) 4, 35. Show Answer Correct Answer: C) 4, 25. 18. Which of the following best describes how an increase in the money supply shifts the aggregate demand curve? A) The money supply curve shifts right, the interest rate rises, investment increases, and the aggregate demand curve shifts right. B) The money supply curve shifts right, the interest rate rises, investment decreases, and the aggregate demand curve shifts left. C) The money supply curve shifts right, the interest rate falls, investment increases, and the aggregate demand curve shifts right. D) The money supply curve shifts right, prices rise, spending falls, and the aggregate demand curve shifts left. Show Answer Correct Answer: C) The money supply curve shifts right, the interest rate falls, investment increases, and the aggregate demand curve shifts right. 19. Equilibrium quantity A) Specialization in production state in which opposing forces or influences are balanced. B) A state in which opposing forces or influences are balanced. C) The quantity at which quantity demanded and quantity supplied are equal for a certain price level. D) The price at which the amount producers are willing to supply is equal to the amount consumers are willing to buy. Show Answer Correct Answer: A) Specialization in production state in which opposing forces or influences are balanced. 20. If the demand for used cars decreases after the price of a new car falls, used cars and new cars are A) Inferior goods. B) Substitute goods. C) Complementary goods. D) Normal goods. Show Answer Correct Answer: B) Substitute goods. ← 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