This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Macroeconomics – Quiz 94 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 94 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The recent released CPI for 2020 shows an increase in prices of 1.4 over 2019, this is used to calculate A) Nominal GDP. B) Inflation Rate. C) Unemployment Rate. D) Frictional Unemployment. Show Answer Correct Answer: B) Inflation Rate. 2. What does Investment represent in macroeconomics? A) Spending by households on goods and services. B) Spending by businesses on capital goods. C) Spending by the government on public goods. D) Spending by foreign countries on domestic goods. Show Answer Correct Answer: B) Spending by businesses on capital goods. 3. An income tax is considered progressive if, as income rises A) The marginal rate of tax falls. B) The marginal rate of tax rises. C) The average rate of tax is constant. D) The marginal rate of tax is constant. Show Answer Correct Answer: B) The marginal rate of tax rises. 4. Which of the following is not an investment? A) Wage. B) Property. C) Stocks. D) Shares. Show Answer Correct Answer: A) Wage. 5. What is the main reason for employing contractionary fiscal policy in a time of strong economic growth? A) To encourage borrowing and investment in the economy. B) To reduce unemployment and create more job opportunities. C) To control inflation and prevent the economy from overheating. D) To stimulate economic growth and increase consumer spending. . Show Answer Correct Answer: C) To control inflation and prevent the economy from overheating. 6. Total of real production of final goods and services available in the country. A) AGGREGATE DEMAND. B) AGGREGATE SUPPLY. Show Answer Correct Answer: B) AGGREGATE SUPPLY. 7. What did prisoners (POWs) in camps during World War 2 use to carry out buying and selling transactions? A) It's not. B) Perak. C) Cigarette. D) Barter. Show Answer Correct Answer: C) Cigarette. 8. Which of the following studies the problems of economics at individual levels? A) Microeconomics. B) Macroeconomics. C) Both Micro and Macro economics. D) None of above. Show Answer Correct Answer: A) Microeconomics. 9. In which direction will both aggregate demand and aggregate supply curves shift if there is an increase respectively? A) Left. B) Right. Show Answer Correct Answer: B) Right. 10. A graphic representation of the relationship between price and quantity demand of a certain good or service, with quantity on the horizontal axis and the price on the vertical axis A) Excess Demand. B) Demand Curve. C) Supply Curve. D) Excess Supply. Show Answer Correct Answer: A) Excess Demand. 11. Which of the following represents the equation for finding elasticity of demand? A) % change in price / % change in quantity. B) % change in price / % change in market demand. C) % change in substitutes / % change in value demanded. D) % change in quantity demanded / % change in price. Show Answer Correct Answer: D) % change in quantity demanded / % change in price. 12. A fall in prices is called ..... A) Deflation. B) Inflation. C) GDP. D) Real GDP. Show Answer Correct Answer: A) Deflation. 13. Ratio of total consumption to total income is definition of ..... A) MPC. B) APC. C) APS. D) MPS. Show Answer Correct Answer: B) APC. 14. Define outsourcing. A) The process by which businesses or other organizations develop international influence or start operating on an international scale. B) The action of making or manufacturing from components or raw materials, or the process of being so manufactured. C) A practice used by different companies to reduce costs by transferring portions of work to outside suppliers rather than completing it internally. D) None of above. Show Answer Correct Answer: C) A practice used by different companies to reduce costs by transferring portions of work to outside suppliers rather than completing it internally. 15. During a recession, government transfer payments automatically ..... and tax revenue automatically ..... A) Falls; falls. B) Increase; falls. C) Increase; increases. D) Fall; increases. Show Answer Correct Answer: B) Increase; falls. 16. Aggregation is involved in: A) Microeconomics. B) Macroeconomics. C) Both (a) and (b). D) None of these. Show Answer Correct Answer: C) Both (a) and (b). 17. Which of the following measures the changes in the prices of a "market basket" of goods and services? A) The GDP price index. B) The Consumer Price Index. C) The retail trade survey. D) The Survey of Manufacturers. Show Answer Correct Answer: B) The Consumer Price Index. 18. Iron, minerals, coal and plants are examples of which productive resource? A) Land. B) Labor. C) Entrepreneurship. D) Capital. Show Answer Correct Answer: A) Land. 19. Suppose that an economy is growing at a real rate of 3% per year. About how long will it take for this economy to double in size? A) 9 years. B) 12 years. C) 18 years. D) 24 years. E) 33 years. Show Answer Correct Answer: D) 24 years. 20. Which of the following is a corporation that issues stock that can be freely bought and sold? A) Multinational corporation. B) Nonprofit corporation. C) Private corporation. D) Public corporation. Show Answer Correct Answer: D) Public corporation. ← 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