This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Macroeconomics – Quiz 87 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 87 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. An estimate of future revenues and expenses. A) Budget. B) Real property. C) Personal property. D) Tax exempt. Show Answer Correct Answer: A) Budget. 2. What percent is considered the perfect "Goldilocks" inflation rate? A) 1%. B) 2%. C) 5%. D) 10%. Show Answer Correct Answer: B) 2%. 3. Corn/TV Sets A 0/6 B 12/5 C 22/4 D 30/3 E 36/2 F 40/1 G 42/0A combination of 30 units of corn and 2 TV sets: A) Illustrates inefficient use of existing resources. B) Could not be produced with the current supply of resources and existing level of technology. C) Is possible only with full employment and full production of existing resources. D) Would represent a point on the PP curve. Show Answer Correct Answer: A) Illustrates inefficient use of existing resources. 4. Statisticians use the CPI stats to calculate what? A) Inflation. B) Unemployement. C) Producer Prices Index. D) Stable Prices. Show Answer Correct Answer: A) Inflation. 5. Demand A) Complements = goods that you purchase together.Example:peanut butter & jellyMilk & Cereal, Chips & SalsaSubstitutes = goods that you instead of each otherExamples:Coke & Pepsi, Gatorade & PowerAde. B) A curve that shows the relationship between the price of a product and the quantity of the product demanded. C) The study of how society manages its scarce resources. D) The quantity of a good or service that consumers are willing and able to buy. Show Answer Correct Answer: D) The quantity of a good or service that consumers are willing and able to buy. 6. . If the central bank sells $ 500 in bonds to a bank that has issued $ 10, 000 in loans and is exactly meeting the reserve requirement of 10%, what will happen to the amount of loans and to the money supply in general? A) The amount of loans will increase and the money supply will increase. B) The amount of loans will decrease and the money supply will increase. C) The amount of loans will increase and the money supply will decrease. D) The amount of loans will decrease and the money supply will decrease. Show Answer Correct Answer: D) The amount of loans will decrease and the money supply will decrease. 7. Human Capital refers to: A) The goods and services humans produce that satisfy their needs and wants. B) The machinery, tools and equipment used to produce goods and services. C) The knowledge, skills, and abilities workers acquire through education education, training, and experience. D) The land, water, and mineral deposits humans us to produce goods and services. Show Answer Correct Answer: C) The knowledge, skills, and abilities workers acquire through education education, training, and experience. 8. When government debt is financed internally, future generations will A) Inherit a lower tax liability. B) Inherit neither higher taxes nor interest payment liability. C) Inherit higher taxes. D) Do none of the above. Show Answer Correct Answer: C) Inherit higher taxes. 9. "A ..... market is a market in which there are many buyers and sellers of the same good or service." ? A) Contemptive. B) Cooperative. C) Competitive. D) Conservative. Show Answer Correct Answer: C) Competitive. 10. Below are direct policies to combat inflation, EXCEPT A) Controlling prices on consumer goods. B) Family planning in the long run. C) Increasing the local products to reduce imports. D) Strengthening currency value to reduce the cost of imports. Show Answer Correct Answer: B) Family planning in the long run. 11. True or False ..... the Federal Reserve helps with fiscal policy A) True. B) False. Show Answer Correct Answer: B) False. 12. In case of Appreciation of Rupees against US Dollar (foreign currency), what will be the impact of it on Indian Imports A) Decrease. B) Increase. C) No change. D) Don't Know. Show Answer Correct Answer: B) Increase. 13. The Demand curve for labor is: A) Upward Slope. B) Downward Slope. C) Left Shift. D) Right Shift. Show Answer Correct Answer: B) Downward Slope. 14. Jose just purchased new tires for his ten-year-old car. Is this purchase counted towards GDP? A) Yes. B) No. Show Answer Correct Answer: A) Yes. 15. A limit on the quantity of a good that may be imported in a given time period is called: A) An embargo. B) A tariff. C) A quota. D) Dumping. Show Answer Correct Answer: C) A quota. 16. The deliberate use of government spending and taxation to influence economic activity is called: A) Monetary policy. B) Classical economics. C) Fiscal policy. D) Smithism. E) RET. Show Answer Correct Answer: C) Fiscal policy. 17. Which of the following is an example for microeconomics A) Total output. B) Employment. C) Price determination of a product. D) Inflation and deflation. Show Answer Correct Answer: C) Price determination of a product. 18. Federal Open Market Committee (FOMC) A) Committee that makes decisions that affect the economy as a whole by manipulating the money supply. B) An institution that lends money to other banks; also where government does its banking business. C) Spending for federal programs that must receive approval each year. D) Material well-being of an individual, measured by how well their needs and wants are satisfied. Show Answer Correct Answer: A) Committee that makes decisions that affect the economy as a whole by manipulating the money supply. 19. When consumption increases unemployment will A) Increase. B) Decrease. C) Stay the same. D) Result in stagflation. Show Answer Correct Answer: B) Decrease. 20. GPD that is adjusted for inflation is called: A) Nominal GDP. B) Real GDP. Show Answer Correct Answer: B) Real GDP. ← 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