This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Macroeconomics – Quiz 93 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 93 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Imagine you decide to purchase a soccer ball for $ 35. Which of the following is an opportunity cost of your decision? A) The time spent deciding to spend your money. B) Something else that could have been bought. C) $ 35 cash. D) The time spent making the purchase and the tax paid on the ball. Show Answer Correct Answer: B) Something else that could have been bought. 2. How is the unemployment rate calculated? A) Number of unemployed people divided by the labor force. B) Number of employed people divided by the labor force. C) Number of unemployed people multiplied by the labor force. D) Number of employed people multiplied by the labor force. Show Answer Correct Answer: A) Number of unemployed people divided by the labor force. 3. When export increase, what are the consequences? A) Supply of foreign exchange increase and BP curve shift to the left. B) Demand of foreign exchange increase and IS curve shift to the right. C) Supply of foreign exchange increase and IS curve shift to the right. D) Exchange rate fall and BP curve to the right. Show Answer Correct Answer: C) Supply of foreign exchange increase and IS curve shift to the right. 4. Mention 5 (Five) Main Macroeconomics Indicators! A) National Income, Employment Rate, Inflation Rate, Balance Sheet Rate, and Currency Stability. B) National Income, Unemployment Rate, Deflation Rate, Balance Sheet Rate, and Currency Stability. C) Regional Income, Unemployment Rate, Infaltion Rate, Balance Sheet Rate, and Currency Stability. D) Education Rate, Public Health Rate, Inflation Rate, Balance Sheet Rate, and Currency Stability. Show Answer Correct Answer: A) National Income, Employment Rate, Inflation Rate, Balance Sheet Rate, and Currency Stability. 5. Which of the following is not an assumption of life cycle hypothesis? A) Households will not save. B) There is no change in price level and interest rate. C) The household has a known life span. D) Household income consist of measured income and transitory income. Show Answer Correct Answer: D) Household income consist of measured income and transitory income. 6. The Growth Domestic Product is measured or defined by the following elements or indicators: A) Consumption + Investment + Government Spending + Net Exports. B) Consumption + Government Spending + Central Policies + Protectionism. C) Consumption + Investment + Government Spending + Taxes. D) Investment + Consumption + Taxes & Tariffs + Finances. Show Answer Correct Answer: A) Consumption + Investment + Government Spending + Net Exports. 7. A nation's capital stock will continue to grow if the growth rate of new A) Capital investment exceeds the rate of inflation. B) Capital investment exceeds the rate of consumer spending. C) Capital investment exceeds the rate of depreciation on existing capital. D) Consumer spending exceeds the rate of unemployment. E) Consumer spending exceeds the rate of inflation. Show Answer Correct Answer: C) Capital investment exceeds the rate of depreciation on existing capital. 8. An agreement between 27 European countries to encourage open trade and easy travel between those nations. A) NAFTA. B) EU. C) WTO. D) ABC. Show Answer Correct Answer: B) EU. 9. Higher interest rates are likely to A) Have no effect on consumer spending or saving. B) Decrease consumer spending and increase consumer saving. C) Decrease both consumer spending and consumer saving. D) Increase consumer spending and decrease consumer saving. Show Answer Correct Answer: B) Decrease consumer spending and increase consumer saving. 10. Why can people not buy and sell any products they want in the U.S.? A) Too much government interference. B) Too little government interference. C) No one knows, it's one of life's great mysteries, like "is a hot dog a sandwich?". D) Not all products are legal. Show Answer Correct Answer: D) Not all products are legal. 11. Fixed exchange rate system is also known as A) Pegged exchange rate system. B) Floating exchange rate system. C) Dirty Floating. D) Both (b) and (c). Show Answer Correct Answer: A) Pegged exchange rate system. 12. Which of the following is an macroeconomics statement? A) The price of Ipad increase about 8.5%. B) The inflation rate of Nepal is 6.5% in 2022. C) FELDA profit increases every year. D) The price of chicken increasing during Chinese New Year. Show Answer Correct Answer: B) The inflation rate of Nepal is 6.5% in 2022. 13. According to the crowding-out effect, if the president and Congress increase government purchases in a recessionary gap A) The demand for money will decrease, driving interest rates down. B) The demand for money will increase, driving interest rates up. C) The supply of money will increase, driving interest rates up. D) The supply of money will decrease, driving interest rates down. Show Answer Correct Answer: B) The demand for money will increase, driving interest rates up. 14. Which action causes U.S. GDP to increase? A) Japan sells Japanese bonds to the US. B) The US imports Japanese cars. C) Japan buys US Government Bonds. D) The US exports machinery to Japan. Show Answer Correct Answer: D) The US exports machinery to Japan. 15. The Keynesian model supports A) Government interference. B) Free Market. Show Answer Correct Answer: A) Government interference. 16. The unemployment as an Macroeconomic indicator, refers to the percentage of the population that is:out of work, looking for work and willing to work. A) True. B) False. Show Answer Correct Answer: A) True. 17. A decline of a nation's output accompanied by a rise in the price level is A) Hyperinflation. B) Stagflation. C) Deflation. D) Inflation. Show Answer Correct Answer: B) Stagflation. 18. In the trade cycle what comes first? A) Boom. B) Upswing. C) Reccession. D) None, It's continuous. Show Answer Correct Answer: D) None, It's continuous. 19. What is the name of the currency (money) used by several EU member countries? A) Euro. B) Pound. C) Dollar. D) Franc. Show Answer Correct Answer: A) Euro. 20. Mr. Skinner has quit his job in order to look for another one. Mr. Skinner A) Is cyclically unemployed. B) Is frictionally unemployed. C) Is structurally unemployed. D) Is not counted as part of the labor force. Show Answer Correct Answer: B) Is frictionally unemployed. ← 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