This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Macroeconomics – Quiz 82 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 82 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of the following deals with Macroeconomics? A) Individual income. B) Individual output. C) Individual savings. D) General price level. Show Answer Correct Answer: D) General price level. 2. According to the modern view of monetary policy, rapid (expansive) growth in the money supply in the long run will: A) Causing the rate of inflation and interest rates to fall. B) Causes inflation and interest rates to rise. C) Does not affect the economy. D) Resulting in an increase in real GDP and unemployment rates. Show Answer Correct Answer: B) Causes inflation and interest rates to rise. 3. Adam Smith's call for the restricting of government in the economy is called ..... A) The invisible hand. B) Laissez Faire. C) Consumer sovereignty. D) Competition. Show Answer Correct Answer: B) Laissez Faire. 4. Tax multiplier:$\frac{\Delta Y}{\Delta T}=$ A) $\frac{-MPC}{1-MPC}$. B) $\frac{MPC}{1-MPC}$. C) $\frac{-MPC}{MPC-1}$. D) $\frac{MPC-1}{-MPC}$. Show Answer Correct Answer: A) $\frac{-MPC}{1-MPC}$. 5. ..... studies the problems related to measurement of national income. A) Microeconomics. B) International economics. C) Macroeconomics. D) None of above. Show Answer Correct Answer: C) Macroeconomics. 6. China placed a 25% tax on imported American chicken. A) Tariff. B) Quota. C) Embargo. D) None of above. Show Answer Correct Answer: A) Tariff. 7. All of the following are interaction principles EXCEPT: A) Trade can make everyone better off. B) The standard of living depends on a country's production. C) Governments can sometimes improve economic outcomes. D) Markets are usually a good way to organize economic activity. Show Answer Correct Answer: B) The standard of living depends on a country's production. 8. Compared to fiscal policy, which of the following is an advantage of using monetary policy to attain macroeconomic goals? A) It takes a long time for fiscal policy to have an effect on the economy, but the effects of monetary policy are immediate. B) The effects of monetary policy are certain and predictable, while the effects of fiscal policy are not. C) The implementation of monetary policy is not slowed down by the same budgetary process as fiscal policy. D) The economists who help conduct monetary policy are smarter than those who help with fiscal policy. Show Answer Correct Answer: C) The implementation of monetary policy is not slowed down by the same budgetary process as fiscal policy. 9. A government wishes to reduce aggregate demand by increasing interest rates. This will have the effect of reducing A) Industrial costs. B) The external value of the domestic currency. C) Disposable income. D) The propensity to save. Show Answer Correct Answer: C) Disposable income. 10. The total quantity of all goods and services consumers are willing and able to purchase at each price level in a given period of tim A) Aggregate supply. B) Aggregate demand. Show Answer Correct Answer: B) Aggregate demand. 11. What causes the long-run Phillips curve to shift? A) Changes in cyclical unemployment. B) Changes in expectations about inflation. C) Changes in structural or frictional unemployment. D) Shifts in the short-run aggregate supply (SRAS) curve. E) Shifts in the aggregate demand curve. Show Answer Correct Answer: C) Changes in structural or frictional unemployment. 12. The economy is experiencing negative GDP growth and high unemployment. Which fiscal policy action should the government implement in an attempt to fix this problem? A) Raise taxes. B) Increase spending. C) Decrease interest rates. D) Increase reserve requirements. Show Answer Correct Answer: B) Increase spending. 13. All of the following could cause unemployment EXCEPT A) A change in seasons. B) A decrease in taxes. C) A mismatch between job requirements and worker skill. D) People being temporarily between jobs. Show Answer Correct Answer: B) A decrease in taxes. 14. Which of the following is the formula to calculate GNP, based on the expenditure approach?[Antara yang berikut, yang manakah merupakan formula untuk mengira GNP mengikut kaedah perbelanjaan?] A) GNP = C + I + G + (X + M) [GNP = C + I + G + (X + M)]. B) GNP = C + I + G-(M-X) [GNP = C + I + G-(M-X)]. C) GNP = C + I + G + X + M [GNP = C + I + G + X + M]. D) GNP = C + I + G + M-X [GNP = C + I G + M-X]. Show Answer Correct Answer: B) GNP = C + I + G-(M-X) [GNP = C + I + G-(M-X)]. 15. TRUE or FALSE:The opportunity cost method for valuing household production looks at what it would cost to have the same services provided by paid workers. A) TRUE. B) FALSE. Show Answer Correct Answer: B) FALSE. 16. The calculation of GDP excludes the value of (I) A used economics textbook from the bookstore (III) A car produced in a foreign country (II) Homework help provided by a teacher to her own child (IV) New harvesting equipment for the farm A) (I) and (II). B) (I), (III) and (III). C) (I) and (III). D) ) All of the above. Show Answer Correct Answer: B) (I), (III) and (III). 17. The ..... market equilibrium shown by the IS curve A) Capital. B) Money. C) Goods. D) Textile. Show Answer Correct Answer: C) Goods. 18. What is the percentage rate or level of inflation if it is known that the consumer price index in April 2020 was 104.80 and in May it was 104.72..... A) 0.075. B) 0.076. C) 0.077. D) 0.078. Show Answer Correct Answer: B) 0.076. 19. MPC measures A) Change in income as a result of change in consumption. B) Change in consumption as a result of change in income. C) Change in income as a result of change in saving. D) Change in saving as a result of change in income. Show Answer Correct Answer: B) Change in consumption as a result of change in income. 20. Which of the following is a disadvantage of sole proprietorship? A) They're hard to start up. B) Personal property is protected under bankruptcy. C) The owner takes all the risk and responsibility. D) The owner doesn't get to keep all the profits. Show Answer Correct Answer: C) The owner takes all the risk and responsibility. ← 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