Macroeconomics Quiz 77 (20 MCQs)

Quiz Instructions

Select an option to see the correct answer instantly.

1. What does Per Capita Mean?

Correct Answer: D) Per Person.

2. What does fiscal policy primarily involve?

Correct Answer: B) Government spending and taxation.

3. An increase in the labor force population would cause the PPF to

Correct Answer: B) Shift outward.

4. Most of the discretionary spending of the federal government is spent on:

Correct Answer: C) Military.

5. What type of worker would have a college qualification and training such as a plumber, hairdresser?

Correct Answer: B) Skilled.

6. The deficit budgets occurs when

Correct Answer: D) The government's total expenditure exceeds revenue.

7. The three major macroeconomic goals do not include

Correct Answer: D) High levels of environmental quality.

8. A market structure with many sellers that compete based on changing up their products .....

Correct Answer: A) Monopolistic.

9. Which of the following is not a tool the fed uses to make monetary policy decisions?

Correct Answer: D) Taxes.

10. GDP that is adjusted for inflation

Correct Answer: A) Real GDP.

11. What is the Cash Reserve Ratio (CRR)?

Correct Answer: C) The fraction of the deposits that commercial banks must keep with RBI.

12. "Studying the GDP contribution made by three sectors of the economy i.e. Primary sector, Secondary sector and Tertiary sector" is an example of?

Correct Answer: B) Macroeconomics.

13. Which of the following is the money flow that corresponds to the real flow of resources?

Correct Answer: D) Resources and goods.

14. What impossible trinity scenario is it that cannot be achieved?

Correct Answer: B) Free capital mobilityHave monetary policyHave a fixed exchange rate.

15. The vertical portion of LM curve indicates

Correct Answer: B) Zero interest elasticity.

16. During a economic expansion, the Federal Government should use .....

Correct Answer: B) A contractionary fiscal policy.

17. Which person below would be considered frictionally unemployed?

Correct Answer: B) Jake, who has recently entered the labor force.

18. Equals the amount sellers receive for their goods minus their costs of production. Used to measure the economic well being of producers.

Correct Answer: C) Producer surplus.

19. Suppose the Federal Reserve wants to reduce the nation's money supply. The Fed could accomplish this by doing all of the following except what?

Correct Answer: A) Decrease the discount rate.

20. What are the tools of macroeconomics?

Correct Answer: D) All of the above.