This quiz works best with JavaScript enabled. Home > Finance > Economics > Macroeconomics > Macroeconomics – Quiz 10 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 10 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What has NAFTA encourage countries to do? A) Create universal minimum wage laws. B) Participate in the global economy. C) Create a uniformed currency. D) Participated in writing laws to end pollution. Show Answer Correct Answer: B) Participate in the global economy. 2. Contractionary policy utilized by the Fed would be best served for which of the following issues? A) To curb inflation during an expansion phase. B) To help reduce unemployment. C) Taxes are too high. D) To help increase the money supply. Show Answer Correct Answer: A) To curb inflation during an expansion phase. 3. What do households provide to the resource market? A) Land, labour, capital. B) Money. C) People. D) Income. Show Answer Correct Answer: A) Land, labour, capital. 4. Equilibrium price A) The price at which the amount producers are willing to supply is equal to the amount consumers are willing to buy. B) Specialization in production. C) The quantity at which quantity demanded and quantity supplied are equal for a certain price level. D) Land, labor, capital, entrepreneurship. Show Answer Correct Answer: A) The price at which the amount producers are willing to supply is equal to the amount consumers are willing to buy. 5. The long run aggregate supply curve is also known as A) Structural unemployment. B) Full-employment. C) Cyclical unemployment. D) The natural rate of employment. Show Answer Correct Answer: B) Full-employment. 6. Which of the following is the most likely reason for a monetary policy that decreases the money supply? A) To reduce unemployment. B) To encourage production. C) To control inflation. D) To increase total spending. Show Answer Correct Answer: C) To control inflation. 7. Which is not a function of Central bank? A) To be a banker to other bank. B) To promote monetary stability and a financial structure. C) To import the printing of currency. D) Be a holder of the country's stock of gold and foreign currency reserves. Show Answer Correct Answer: C) To import the printing of currency. 8. An increase in the price of gasoline will most likely cause the demand curve for tires to change in which direction? A) To the left, because gasoline and tires are substitutes. B) To the left, because gasoline and tires are complements. C) To the right, because gasoline and tires are substitutes. D) To the right, because gasoline and tires are complements. Show Answer Correct Answer: B) To the left, because gasoline and tires are complements. 9. Macroeconomics refers to all, except A) GST. B) Utility of household. C) Countries. D) National output. Show Answer Correct Answer: B) Utility of household. 10. Under this principle of taxation, a person that benefits from the use of a good or service should pay for it. A) Ability to pay principle. B) Progressive principle. C) Regressive principle. D) Benefit principle. Show Answer Correct Answer: D) Benefit principle. 11. Madinsonia has a real gross domestic production (GDP) per capita of $ 10, 000.Which of the following statements can we infer from this information? A) Every person has an income of less than $ 10, 000. B) Without knowing the size of the population, we cannot say what a typical person earns. C) Every person has an income of at least $ 10, 000. D) The average income of a person is $ 10, 000, but this might not be the typical person's income. Show Answer Correct Answer: D) The average income of a person is $ 10, 000, but this might not be the typical person's income. 12. Productivity is the the quantity of goods and services produced from each hour of a worker's time A) TRUE. B) FALSE. Show Answer Correct Answer: A) TRUE. 13. A view that focuses attention on the demand for money for transaction purposes, namely according to the view..... A) Economist Austria. B) Keynesian. C) Choudhury. D) Monetarist. Show Answer Correct Answer: D) Monetarist. 14. Why is it important to start investing as soon as possible? A) Investing is an easy way to make quick money. B) Fees on investments are cheaper when you are younger. C) You have more time for your money to compound. D) You take less risk when you are young, so money will be safe. Show Answer Correct Answer: C) You have more time for your money to compound. 15. Which is NOT a part of the GDP equation? A) Value of Money. B) Business Investments. C) Consumer Consumption. D) Net Exports. Show Answer Correct Answer: A) Value of Money. 16. A moderate inflation rate is usually identified around what percentage of price increases? A) 10%. B) 50%. C) 10%-30%. D) 30%-60%. Show Answer Correct Answer: C) 10%-30%. 17. A ..... is a hypothetical set of consumer purchases of goods and services. A) Market Basket. B) Consumer Price Index (CPI). C) Aggregate Price Level. D) Producer Price Index (PPI). Show Answer Correct Answer: A) Market Basket. 18. Which order best illustrates the business cycle? A) Trough-Recession-Expansion-Peak. B) Recession-Expansion-Depression-Peak. C) Recession-Trough-Expansion-Peak. D) Peak-Depression-Recession-Expansion. Show Answer Correct Answer: C) Recession-Trough-Expansion-Peak. 19. What is the purpose of Fiscal Policy? A) Contribute to economic growth and stability. B) Keep rich people from getting too rich. C) Functions exactly like Fiscal Policy. D) Give Congress and the political parties more control of the economy. Show Answer Correct Answer: A) Contribute to economic growth and stability. 20. Govt purchases multiplier:$\frac{\Delta Y}{\Delta G}$ A) $\frac{1}{MPC-1}$. B) $\frac{1-MPC}{1}$. C) $\frac{MPC-1}{1}$. D) $\frac{1}{1-MPC}$. Show Answer Correct Answer: D) $\frac{1}{1-MPC}$. 21. Selling their services to businesses on a contract basis A) Wages. B) Contingent Employment. C) Telecommuting. D) Independent Contractor. Show Answer Correct Answer: D) Independent Contractor. 22. Wheat flour used in baking bread and biscuit is ..... A) Capital goods. B) Consumption goods. C) Final good. D) Intermediate good. Show Answer Correct Answer: D) Intermediate good. 23. The ..... is a rule for setting the federal funds rate that takes into account both the inflation rate and the output gap. A) Taylor Rule for Monetary Policy. B) Fisher Effect. C) Monetary Policy Rule. D) None of above. Show Answer Correct Answer: A) Taylor Rule for Monetary Policy. 24. The economy of Burginville has been running budget deficits which it paid for by borrowing.What is the likely impact of government borrowing on spending on capital goods and economic growth in Burginville? A) A decrease in spending on capital goods; no effect on economic growth. B) Increase in spending on capital goods; no effect on economic growth. C) Increase in spending on capital goods; an increase in economic growth. D) No effect on spending on capital goods or economic growth. E) A decrease in spending on capital goods; a decrease in economic growth. Show Answer Correct Answer: E) A decrease in spending on capital goods; a decrease in economic growth. 25. If Minh received a $ 2, 500 bonus and his MPS is 0.20, his consumption rises by $ ..... and his saving rises by $ ..... A) 2, 500; 20. B) 500; 100. C) 2, 000; 500. D) 2, 500; 200. Show Answer Correct Answer: C) 2, 000; 500. 26. What type of unemployment occurs when the economy is in a recession? A) Frictional unemployment. B) Structural unemployment. C) Cyclical unemployment. D) All types of unemployment. Show Answer Correct Answer: C) Cyclical unemployment. 27. The practice of doing office work in a location other than the traditional office. A) Independent Contractors. B) Wages. C) Contingent Employment. D) Telecommuting. Show Answer Correct Answer: D) Telecommuting. 28. An economy at the steady state will stay there, an economy not at the steady state will go there A) False. B) True. Show Answer Correct Answer: B) True. 29. A Trade Surplus In A Country's Trade Balance Could Occur When? A) Imports aren't greater than Exports. B) Imports are greater than Exports. C) Exports are lower than Imports. D) Exports aren't greater than Imports. Show Answer Correct Answer: A) Imports aren't greater than Exports. 30. What is structural unemployment? A) Unemployment caused by a lack of demand for labor. B) Unemployment caused by technological advancements. C) Unemployment caused by a decrease in government spending. D) Unemployment caused by a mismatch between skills and employer needs. Show Answer Correct Answer: D) Unemployment caused by a mismatch between skills and employer needs. ← PreviousNext →Related QuizzesEconomics QuizzesFinance QuizzesMacroeconomics Quiz 1Macroeconomics Quiz 2Macroeconomics Quiz 3Macroeconomics Quiz 4Macroeconomics Quiz 5Macroeconomics Quiz 6Macroeconomics Quiz 7Macroeconomics Quiz 8 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books