This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Macroeconomics – Quiz 95 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 95 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Each year, any deficit in the federal government's budget adds to the country's A) National income. B) National debt. C) National surplus. D) None of above. Show Answer Correct Answer: B) National debt. 2. If the income increases by £800, spending rises by £560 and saving grows by £240, what will be the proportion of Marginal Propensity to Consume (MPC) and Marginal Propensity to Save (MPS)? A) MPC=0.8MPS=0.2. B) MPC=0.7MPS=0.3. C) MPC=0.3MPS=0.7. D) MPC=0.2MPS=0.8. Show Answer Correct Answer: B) MPC=0.7MPS=0.3. 3. What would be the appropriate monetary policy during a period of low inflation and steady GDP growth? A) Buy bonds to stop business investment. B) Just monitor the situation, do nothing. C) Sell bonds to encourage even more business investment. D) Continue to keep interest rates low to encourage low inflation. Show Answer Correct Answer: B) Just monitor the situation, do nothing. 4. If the Fed decreases the money supply, it is implementing a(n) ..... policy A) Expansionary monetary. B) Contractionary monetary. C) Expansionary fiscal. D) Contractionary fiscal. Show Answer Correct Answer: B) Contractionary monetary. 5. A local government begins offering vocational training programs for people who are struggling to find jobs. Which type of unemployment is the government seeking to address? A) Cyclical unemployment. B) Frictional unemployment. C) Structural unemployment. D) Seasonal unemployment. Show Answer Correct Answer: C) Structural unemployment. 6. To calculate the unemployment rate an economist would need the total number of unemployed people and which other number? A) The inflation rate. B) Number of transactions in the resource market. C) Total number of discouraged workers. D) Total number of people in the labor force. Show Answer Correct Answer: D) Total number of people in the labor force. 7. John Quincy Adams is known as ..... A) The Father of economics and capitalism. B) The sixth president of the United States. Show Answer Correct Answer: B) The sixth president of the United States. 8. Dalam economic value of time, hubungan Return on capital ..... A) Sama dengan dengan Return on money. B) Tidak sama dengan dengan Return on money. Show Answer Correct Answer: B) Tidak sama dengan dengan Return on money. 9. Higher production costs can lead to A) Unemployment. B) Deflation. C) Increase output. D) Inflation. Show Answer Correct Answer: D) Inflation. 10. Tax cuts are examples of which policy? A) Expansionary monetary policy. B) Contractionary monetary policy. C) Contractionary fiscal policy. D) Expansionary fiscal policy. Show Answer Correct Answer: D) Expansionary fiscal policy. 11. What is the natural rate of unemployment? A) The rate of unemployment when there is only frictional and structural unemployment. B) The rate of unemployment when there is 0% unemployment. C) The rate of unemployment when there is only cyclical unemployment. D) The rate of unemployment when there is high inflation. Show Answer Correct Answer: A) The rate of unemployment when there is only frictional and structural unemployment. 12. Which best describes the characteristics of a Market economy? A) Producers decide what to produce based on what price consumer are willing to pay. B) Products are produced based on what was produced in the past or customs. Show Answer Correct Answer: A) Producers decide what to produce based on what price consumer are willing to pay. 13. When all who are willing and able to work have the opportunity to do so. A) Price Stability. B) Economic Growth. C) Full Employment. D) None of above. Show Answer Correct Answer: C) Full Employment. 14. Which of the following is not one of the components of GDP? A) Consumption. B) Income. C) Government purchases. D) Exports. E) Imports. Show Answer Correct Answer: B) Income. 15. American consumers spend more of their money on A) Durable goods. B) Non-durable goods. C) Services. D) None of above. Show Answer Correct Answer: C) Services. 16. An example of expansionary fiscal policy would be A) Cutting taxes. B) Cutting government spending. C) Cutting production of consumer goods. D) Cutting prices of consumer goods. Show Answer Correct Answer: A) Cutting taxes. 17. An increase in demand will shift the demand curve ..... A) Right. B) Left. C) No movement. D) No change. Show Answer Correct Answer: A) Right. 18. Inflation can be measured by the A) Change in the consumer price index. B) Change in the price of specific commodity. C) Percentage change in the consumer price index. D) Percentage change in the price of specific commodity. Show Answer Correct Answer: C) Percentage change in the consumer price index. 19. This is money that has another useful purpose. A) Fiat. B) Commodity. C) Debt. D) Securities. Show Answer Correct Answer: B) Commodity. 20. A tax that takes a larger percentage of income from high-income groups than from low income groups is known as a ..... A) Progressive Tax. B) Proportional Tax. C) Regressive Tax. D) Excise Tax. Show Answer Correct Answer: A) Progressive Tax. ← 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