This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Macroeconomics – Quiz 80 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 80 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Unanticipated inflation A) Hurts lenders who lend at fixed rates. B) Borrowers who borrow at fixed rates. Show Answer Correct Answer: A) Hurts lenders who lend at fixed rates. 2. An example of a country with total government control of the economy is: A) New Zealand. B) North Korea. C) USA. D) None of above. Show Answer Correct Answer: B) North Korea. 3. Father of Modern Economics 2. Wrote the Wealth of Nations 3. Defined the Division of Labor 4. Defined the Invisible Hand A) Karl Marx. B) Adam Smith. C) John Meynard Keynes. D) Friedrich Hayek. Show Answer Correct Answer: B) Adam Smith. 4. The term "leverage" refers to ..... A) Political influence the financial sector exercises. B) The use of stockholder equity to increase assets. C) The use of borrowed money to increase one's rate of return. D) The power that bondholders have in bankruptcy proceedings. E) None of these statements accurately describes leverage. Show Answer Correct Answer: C) The use of borrowed money to increase one's rate of return. 5. In the multiplier model, aggregate production curve shows that real production equals real income A) True. B) False. Show Answer Correct Answer: A) True. 6. Nominal Gross Domestic Product (GDP) will always be higher than real GDP when: A) Prices are falling. B) Prices are unstable. C) Prices are rising. D) Prices are stable. Show Answer Correct Answer: C) Prices are rising. 7. Autonomous items are also known as below the line items. A) True. B) False. Show Answer Correct Answer: B) False. 8. Recommend the fiscal tool to control deflation. A) Increase the rate of interest. B) Decrease the rate of interest. C) Increase the tax. D) Decrease the tax. Show Answer Correct Answer: C) Increase the tax. 9. The trend of the economy is A) Long run deflation. B) Short term production capacity. C) Long run growth path of the economy. D) Long unemployment rate. Show Answer Correct Answer: C) Long run growth path of the economy. 10. Shona is an unemployed engineer, who no longer has a job since the end of the mining investment boom. Which kind of unemployment is she experiencing? A) Cyclical. B) Structural. C) Seasonal. D) Frictional. Show Answer Correct Answer: A) Cyclical. 11. Some economists argue the reduction of a minimum wage and lower welfare will help reduce unemployment A) The cheaper wage rate will means more people will be employed. B) It provides opportunities for low skilled workers to get a job. C) The low income means people would have to work to survive. D) All of these responses. Show Answer Correct Answer: D) All of these responses. 12. The fluctuation in the value of money seen from one country's currency compared to other countries is material for the stability of the value of the currency based on the approach..... A) Closed economy. B) Open economy. Show Answer Correct Answer: B) Open economy. 13. Because prices are sticky, positive demand shock will lead to: A) No change in unemployment. B) An increase in unemployment. C) A decrease in unemployment. D) An unpredictable change in unemployment. Show Answer Correct Answer: C) A decrease in unemployment. 14. The IS model relates to the ..... policy. A) Fiscal. B) Monetary. C) Education. D) Health. Show Answer Correct Answer: A) Fiscal. 15. The expansionary fiscal policy involves A) Only an increase in taxes. B) A decrease in government spending and/or an increase in taxes. C) Only a decrease in government spending. D) An increase in government spending and/or a decrease in taxes. Show Answer Correct Answer: D) An increase in government spending and/or a decrease in taxes. 16. Paul is a stay at home dad, who takes care of three young children. Paul is ..... A) Employed. B) Not in the workforce. C) Unemployed. D) A discouraged worker. Show Answer Correct Answer: B) Not in the workforce. 17. Ted is working towards his dream of becoming a lawyer by working at a law firm as a legal clerk. A) Free Market. B) Traditional. C) Command. D) None of above. Show Answer Correct Answer: A) Free Market. 18. Unemployment caused by by a deficiency of total spending. The overall demand for goods and services decreases. A) Frictional Unemployment. B) Structural Unemployment. C) Seasonal Unemployment. D) Cyclical Unemployment. Show Answer Correct Answer: D) Cyclical Unemployment. 19. In reality, all economies are: A) Market. B) Command. C) Mixed. D) None of above. Show Answer Correct Answer: C) Mixed. 20. Which of the following is a flow? A) Population. B) Births and deaths. C) Water in a tank. D) None of these. Show Answer Correct Answer: B) Births and deaths. ← 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