This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Macroeconomics – Quiz 79 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 79 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Point "E" represents which phase of the business cycle? A) Peak. B) Trough. C) Recovery. D) Contraction. E) Expansion. Show Answer Correct Answer: D) Contraction. 2. The Federal Reserve wants to reduce the nation's money supply. This could be accomplished by doing all of the following EXCEPT: A) Increasing the reserve requirement. B) Selling securities on the open market. C) Decreasing the discount rate. D) Making banks hold a reserve for all type of deposits. Show Answer Correct Answer: C) Decreasing the discount rate. 3. Given the danger of bank runs, why do banks not keep the majority of deposits on hand to meet the demands of depositors? A) Banks do not keep the majority of deposits on hand because they are not aware of the potential risks of bank runs. B) Banks do not keep the majority of deposits on hand because they prefer to keep the money for themselves. C) Banks do not keep the majority of deposits on hand because they do not have the physical space to store the money. D) Banks do not keep the majority of deposits on hand because they use the funds to make loans and investments, which allows them to earn interest and generate profits. Show Answer Correct Answer: D) Banks do not keep the majority of deposits on hand because they use the funds to make loans and investments, which allows them to earn interest and generate profits. 4. An increase in personal income taxes will most likely result in which of the following changes in real GDP and the price level in the shortrun? A) Decrease Real GDP; Decrease Price Level. B) Increase Real GDP; Decrease Price Level. C) Decrease Real GDP; Increase Price Level. D) Increase Real GDP; Increase Price Level. Show Answer Correct Answer: A) Decrease Real GDP; Decrease Price Level. 5. When the value of an asset falls due to age, wear, or obsolescence, it is called: A) Devaluation. B) Depreciation. C) Deflation. D) Disinflation. E) Degeneration. Show Answer Correct Answer: B) Depreciation. 6. TRUE or FALSE:We can have everything that we want because we have unlimited resources. A) TRUE. B) FALSE. Show Answer Correct Answer: B) FALSE. 7. Calculation of GDP using the expenditure approach includes: A) Private consumption, net exports, government spending, public investment. B) Labor wages, company profits, depreciation. C) Government payments to individuals. D) All of the above is true. Show Answer Correct Answer: A) Private consumption, net exports, government spending, public investment. 8. The study of an entire economy. A) Macroeconomics. B) Microeconomics. C) Opportunity cost. D) None of above. Show Answer Correct Answer: A) Macroeconomics. 9. The primary role of the Federal Reserve Bank is to steer the economy by A) Controlling the budget. B) Setting spending levels. C) Controlling the money supply. D) None of above. Show Answer Correct Answer: C) Controlling the money supply. 10. Which of the following is not a potential cause of real wage unemployment? A) Minimum wage laws. B) Strong labour unions. C) Inadequate aggregate demand. D) Agreements between workers and employees. Show Answer Correct Answer: C) Inadequate aggregate demand. 11. What are capital gains? A) When you lose money. B) When you spend money on food. C) Adam Smith. D) A profit from the sale of property or investment. Show Answer Correct Answer: D) A profit from the sale of property or investment. 12. Current accounts of commercial banks are part of M1 money. A) True. B) Lie. Show Answer Correct Answer: A) True. 13. An increase in the quantity of capital makes the AS curve to shift ..... A) Inward or Left side. B) Outward or Right side. C) Both inward and outward. D) Both Left and Right side. Show Answer Correct Answer: B) Outward or Right side. 14. The Soviet Union was an example of a ..... A) Command economy. B) Traditional economy. C) Market economy. D) Mixed economy. Show Answer Correct Answer: A) Command economy. 15. Which of the following helps to develop & expand the microeconomics theories? A) Macroeconomics. B) Keynes. C) Theory of Income. D) Adam Smith. Show Answer Correct Answer: A) Macroeconomics. 16. What is a problem with the barter system? A) It allows for the production possibilities curve to shift. B) It can be difficult to figure out what is scarce. C) It utilizes varying currencies. D) Consumers do not know the real value of a good. Show Answer Correct Answer: D) Consumers do not know the real value of a good. 17. The term, "land" means: A) The natural resources used to produce goods or services. B) Work the people do to produce goods and services. C) Goods not created for their own use, but to make other goods/services. D) Person who organizes the factors of production to produce goods/services; business owners. Show Answer Correct Answer: A) The natural resources used to produce goods or services. 18. Employment, gross domestic product, and inflation is: A) Macroeconomics. B) Microeconomics. Show Answer Correct Answer: B) Microeconomics. 19. Aggregate demand is the total spending in the economy, consisting of: A) C+I+G+X. B) C+S+T+M+X. C) S+T+M=C+I+G. D) C+I+G+X-M. Show Answer Correct Answer: D) C+I+G+X-M. 20. Which President is on the $ 5 dollar Bill? A) Washington. B) Jackson. C) Hamilton. D) Lincoln. Show Answer Correct Answer: D) Lincoln. ← 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