This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Macroeconomics – Quiz 76 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 76 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. ..... goods are excluded from the calculation of GDP because their value will be included in the final product. A) Secondhand. B) Nonmarket. C) Intermediate. D) Underground economy. Show Answer Correct Answer: C) Intermediate. 2. Unemployment is at an all time high and consumer spending is at its lowest. Which phase of the business cycle is this? A) Recession. B) Expansion. C) Peak. D) Contraction. Show Answer Correct Answer: A) Recession. 3. What are the main causes of unemployment? A) Global warming, political instability, and natural disasters. B) Low birth rate, aging population, and lack of government support. C) Increased automation, lack of job opportunities, and overpopulation. D) Economic recession, technological advancements, lack of skills or education, outsourcing of jobs, and changes in the labor market. Show Answer Correct Answer: D) Economic recession, technological advancements, lack of skills or education, outsourcing of jobs, and changes in the labor market. 4. Loans extended for longer periods of time often involve higher interest rates in order to A) Compensate the lender for greater risk. B) Compensate the buyer for using savings to make a purchase. C) Encourage consumers to buy durable goods for extended periods of time. D) Encourage lenders to not engage in risky loans. Show Answer Correct Answer: A) Compensate the lender for greater risk. 5. Public saving A) T-G. B) G-T. C) T-C. D) Y-T-C. Show Answer Correct Answer: A) T-G. 6. The components of a Balance of Payment account are ..... A) Capital Account. B) Current Account. C) Both Capital and Current. D) Financial Account. Show Answer Correct Answer: C) Both Capital and Current. 7. All societies face a trade-off for every decision for which of the following reasons? A) Resources are not allocated efficiently. B) Resources are scarce. C) A decision entails zero opportunity cost. D) Some resources are always unused. Show Answer Correct Answer: B) Resources are scarce. 8. It is the use of government spending to affect the economy. A) Fiscal policy. B) Monetary policy. Show Answer Correct Answer: A) Fiscal policy. 9. When the business cycle goes down and unemployment increases and there is no growth for 2 quarters (6 months back to back), we have entered into a ..... A) Trough. B) Peak. C) Recession. D) Growth Trend. Show Answer Correct Answer: C) Recession. 10. Government spending makes up the largest portion of the nations G.D.P. A) True. B) False. Show Answer Correct Answer: B) False. 11. Economics growth is often tied to investment in machinery, new technology, and education of the population. This is because A) The only way to measure economics growth is to observe changes in these factors. B) Investment in these items are the sole determinant of output. C) All of these items improve capital. D) These items lead to a greater productivity of inputs. Show Answer Correct Answer: D) These items lead to a greater productivity of inputs. 12. Workers agree to a 10% wage increase. Everything else remaining constant, this will cause the ..... curve to shift ..... A) Demand; right. B) Demand; left. C) Supply; right. D) Supply; left. Show Answer Correct Answer: D) Supply; left. 13. A macroeconomist generally does..... A) Look for GDP data, overall prices and unemployment rate. B) Start research with control variables. C) Predict what will happen in the future. D) Make economic policy. Show Answer Correct Answer: A) Look for GDP data, overall prices and unemployment rate. 14. What is expenditure A) The total money received by an individual, household or company on a regular basis, for work or through investments. B) An estimate of income and expenditure for a set period of time which allows you to plan how much you can spend in that time. C) The total amount of money spent in a particular period of time. D) The money someone has not spent, usually through a bank or official scheme. Show Answer Correct Answer: C) The total amount of money spent in a particular period of time. 15. The welfare definition of economics is given by ..... A) Adomsmith. B) Paul. C) Alfred marshall. D) None of above. Show Answer Correct Answer: C) Alfred marshall. 16. An increase in which of the following is most likely to cause demand-pull inflation? A) Rental price of capital. B) Fuel costs. C) Consumer spending. D) Income taxes. E) Imports of capital goods. Show Answer Correct Answer: C) Consumer spending. 17. What was responsible for the bubble that led to the 2008 Financial Crisis? A) Tulips. B) Bad Mortgages. C) Bad Car Loans. D) Bitcoin. Show Answer Correct Answer: B) Bad Mortgages. 18. Which of the following is an example of a person acquiring human capital? A) John is taking an Economics course. B) Tim bought a computer. C) Sarah is going to the store. D) Kim is taking her dog for a walk. Show Answer Correct Answer: A) John is taking an Economics course. 19. The best example of a "frictionally unemployed" worker is one who: A) Reduces productivity by causing frictions in a business. B) Is laid off during a recessionary period in the economy. C) Is in the process of voluntarily switching jobs. D) Is discouraged and not actively seeking work. Show Answer Correct Answer: C) Is in the process of voluntarily switching jobs. 20. Velocity = A) $\frac{PT}{M}$. B) $\frac{M}{PT}$. C) $\frac{MT}{P}$. D) $\frac{P}{MT}$. Show Answer Correct Answer: A) $\frac{PT}{M}$. ← 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