This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Macroeconomics – Quiz 86 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 86 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. When each worker performs a specific task in production A) Scarcity. B) Specialization. C) Voluntary Exchange. D) Opportunity Cost. Show Answer Correct Answer: B) Specialization. 2. Who is involved with fiscal policy? A) The Federal Reserve. B) The President and Congress. C) Banks. D) Suppliers and buyers. Show Answer Correct Answer: B) The President and Congress. 3. Deficit spending occurs within the government, when the amount of money being spent is ..... than amount of tax revenue being collected. A) Less. B) More. C) Equal to. D) None of above. Show Answer Correct Answer: B) More. 4. ..... means total of real production of final goods and services available in the country. A) Aggregate demand. B) Aggregate supply. C) Inflation. D) Unemployment. Show Answer Correct Answer: B) Aggregate supply. 5. Intergovernmental Revenues gives tax money to? A) National Government. B) State and Local. C) Local Only. D) State Only. Show Answer Correct Answer: B) State and Local. 6. A situation in which a maximum price is set is referred to as A) A shortage. B) A surplus. C) A price ceiling. D) A price floor. Show Answer Correct Answer: C) A price ceiling. 7. Yes or No.Looking at the expenditure approach, are the expenses of Filipino overseas worker included in our GDP? A) Yes. B) No. Show Answer Correct Answer: B) No. 8. Collective bargaining is the A) Practice used by employers to hire groups of laborers. B) Practice used by employers to get the cheapest labor possible. C) Idea that laborers working in groups are more productive in the workplace. D) Idea that laborers acting together have greater success in negotiating with management. Show Answer Correct Answer: D) Idea that laborers acting together have greater success in negotiating with management. 9. The Federal Reserve influences banking in all of the following ways EXCEPT: A) Controlling the amount of money in circulation. B) Controlling the interest rates at which banks borrow money. C) Regulating how much money banks must keep on hand, or in reserve. D) Monitoring how federal agencies use tax dollars. Show Answer Correct Answer: D) Monitoring how federal agencies use tax dollars. 10. The division of the United States Treasury that is charged with the responsibility of maintaining confidence in and managing the federal tax system is called the A) Department of Justice. B) President. C) Internal Revenue Service. D) Congress. Show Answer Correct Answer: C) Internal Revenue Service. 11. What does it mean when the demand for a product is inelastic A) Consumers will not buy any of the product when the price rises. B) A price increase does not have a significant impact on demand from the consumer. C) Consumers are sensitive to a change in the price of a product they consume. D) There are few acceptable substitutes for the product that the consumer wants to purchase. Show Answer Correct Answer: B) A price increase does not have a significant impact on demand from the consumer. 12. The ..... is a hypothetical market that brings together those who want to lend money and those who want to borrow money. A) Loanable Funds Market. B) Crowding Out. C) Rate of Return Market. D) Supply and Demand Market. Show Answer Correct Answer: A) Loanable Funds Market. 13. To implement expansionary fiscal policy, the government is likely to A) Cut both taxes and spending. B) Increase both taxes and spending. C) Cut taxes and increase spending. D) Increase taxes and cut spending. Show Answer Correct Answer: C) Cut taxes and increase spending. 14. Assuming there is perfect capital mobility, compared to a large open economy, a small open economy is one in which the: A) Exchange rate is fixed. B) Exchange rate is floating. C) Domestic interest rate equals the world interest rate. D) Domestic interest rate is not equal to the world interest rate. Show Answer Correct Answer: C) Domestic interest rate equals the world interest rate. 15. In the Mundell-Fleming model: A) The exchange rate system must have a floating exchange rate. B) The exchange rate system must have a fixed exchange rate. C) It makes no difference whether the exchange rate system has a floating or a fixed exchange rate. D) The behavior of the economy depends on whether the exchange rate system has a floating or a fixed exchange rate. Show Answer Correct Answer: D) The behavior of the economy depends on whether the exchange rate system has a floating or a fixed exchange rate. 16. In order to achieve the goals of maximum employment and stable prices the Fed targets which variable in the U.S. economy? A) Interest rates. B) Unemployment. C) The foreign exchange market. D) Taxes and government spending. Show Answer Correct Answer: A) Interest rates. 17. Which of the following is not non tax revenue receipts of government? A) Excise duty. B) Escheat. C) Special assessment. D) Fees and fines. Show Answer Correct Answer: A) Excise duty. 18. 'Income of the family' is the example of which variable? A) Stock variable. B) Flow variable. C) Inventory. D) Neother stock nor flow. Show Answer Correct Answer: B) Flow variable. 19. Explain the concept of fiscal policy. A) Fiscal policy is the use of government spending and taxation to control the weather. B) Fiscal policy is the use of government spending and taxation to influence the economy. C) Fiscal policy is the use of government spending and taxation to influence foreign policy. D) Fiscal policy is the use of government spending and taxation to determine the value of currency. Show Answer Correct Answer: B) Fiscal policy is the use of government spending and taxation to influence the economy. 20. If a country imports more than it exports, it is experiencing a ..... A) Budget Surplus. B) Budget Deficit. C) Trade Surplus. D) Trade Deficit. Show Answer Correct Answer: D) Trade Deficit. ← 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