This quiz works best with JavaScript enabled. Home > Finance > Economics > Macroeconomics > Macroeconomics – Quiz 102 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 102 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What is NOT characteristics of inflation A) Rise in the price level. B) Each rupiah buys a larger quantity of goods and services. C) Each dollar buys a smaller quantity of goods and services. D) Lower value of money. Show Answer Correct Answer: B) Each rupiah buys a larger quantity of goods and services. 2. Regulation can be defined as ..... A) The market's primary function in a market economy is to regulate and monitor the financial and economic system. B) The government body's primary function in a market economy is to regulate and monitor the financial and economic system. Show Answer Correct Answer: B) The government body's primary function in a market economy is to regulate and monitor the financial and economic system. 3. "There are many factors that can influence the probability of brain drain within a country" . That refers to A) Positive Macroeconomics. B) Normative Macroeconomics. Show Answer Correct Answer: B) Normative Macroeconomics. 4. National Income consist of A) B. B) C. C) A. D) D. Show Answer Correct Answer: D) D. 5. In the long run, what will happen to the slope of the aggregate supply line? A) It will become completely vertical (inelastic). B) It does not change from short run to long run. C) It will curve downward. D) It will become completely horizonal (elastic). Show Answer Correct Answer: A) It will become completely vertical (inelastic). 6. The difference between a Demand Schedule and a Demand Curve is ..... A) Demand Curve is a graphical representation of the Demand Schedule. B) A Demand Schedule is a graphical representation of the Demand Curve. C) A Demand Curve also shows supply, but a Demand Schedule doesn't. D) A Demand Schedule also shows supply, but a Demand Curve doesn't. Show Answer Correct Answer: A) Demand Curve is a graphical representation of the Demand Schedule. 7. Macro economics is a study of A) Firms. B) Aggregates. C) A nation. D) Inidividuals. Show Answer Correct Answer: B) Aggregates. 8. If the Fed wanted to contract or tighten the economy to help fight inflation, they might A) Increase reserves to limit what banks can loan out. B) Lower the interest rate. C) Decrease reserves allowing banks to loan more. D) Decrease government spending. Show Answer Correct Answer: A) Increase reserves to limit what banks can loan out. 9. Which of the following claims is consistent with the views of main stream economists A) If we increase the rate of inflation from 3% to 6% then the rate of unemployment will temporarily fall. B) If we increase the rate of inflation from 3% to 6% then the rate of unemployment will temporarily rise. C) If we increase the rate of inflation from 3% to 6% then the rate of unemployment will permanently fall. D) If we increase the rate of inflation from 3% to 6% and the rate of unemployment would temporarily rise. E) If we increase the rate of inflation from 3% to 6% then the rate of employment will temporarily fall. Show Answer Correct Answer: A) If we increase the rate of inflation from 3% to 6% then the rate of unemployment will temporarily fall. 10. An increase in the demand for money will result in..... A) The LM curve shifts upward and puts pressure on income. B) The LM curve shifts upwards and lowers interest rates. C) The LM curve shifts downwards and increases interest rates. D) The LM curve shifts downwards and puts pressure on income. Show Answer Correct Answer: A) The LM curve shifts upward and puts pressure on income. 11. The public debt increases when A) The government collects more in taxes than it spends. B) The government enacts contractionary fiscal policy. C) The budget balance is positive. D) The government runs a budget deficit. Show Answer Correct Answer: D) The government runs a budget deficit. 12. Occurs when an individual, business, or gov't. budgets more spending than there is revenue available to pay for the spending, over a specific period of time A) Trough. B) Inflation. C) Peak. D) Budget Deficit. Show Answer Correct Answer: D) Budget Deficit. 13. What type of corporation may be owned by just a few people and does not offer its shares for sale to the general public? A) Private. B) Limited. C) C Corporation. D) Franchise. Show Answer Correct Answer: A) Private. 14. The UK economy is most likely to be in the boom phase of the economic cycle when there is a rise in A) The demand for imports. B) The saving ratio. C) Spare capacity. D) Business pessimism. Show Answer Correct Answer: A) The demand for imports. 15. ..... Advantage:When a producer can produce a good/service at a lower opportunity cost than another producer. A) Hippopotamus. B) Absolute. C) Comparative. D) Consumption. Show Answer Correct Answer: C) Comparative. 16. When a currency becomes more valuable in terms of other currencies, it ....., and when it becomes less valuable in terms of other currencies, it ..... A) Appreciates; Depreciates. B) Decreases; Increases. C) Depreciates; Appreciates. D) None of above. Show Answer Correct Answer: A) Appreciates; Depreciates. 17. ..... is inflation that is caused by an increase in aggregate demand. A) Demand-Pull Inflation. B) Demand-Push Inflation. C) Cost-Push Inflation. D) Cost-Pull Inflation. Show Answer Correct Answer: A) Demand-Pull Inflation. 18. GDP is used to ..... ? A) Measure how an economy is doing. B) Measure Government spending. C) Measure Private sector spending. D) None of above. Show Answer Correct Answer: A) Measure how an economy is doing. 19. Which of the following is not an example of labor market reform? A) Reducing unemployment benefits. B) Reducing the power of labor unions. C) Abolishing or reducing the national minimum wage. D) Tax cuts to create incentives to work. Show Answer Correct Answer: D) Tax cuts to create incentives to work. 20. Autonomous consumption is indicated by ..... in the consumption function. A) C. B) AC. C) C. D) None of above. Show Answer Correct Answer: A) C. 21. What is the government's goal to achieve? A) A low, stable rate of inflation. B) A low, fluctuating rate of inflation. C) A low, stable of deflation. D) A high, stable rate of inflation. Show Answer Correct Answer: A) A low, stable rate of inflation. 22. When a national bank controls the money supply it is using A) Monetary policy. B) Financial policy. C) Keynesian policy. D) Fiscal policy. Show Answer Correct Answer: A) Monetary policy. 23. ..... an economy that allocates resources through the decentralized decisions of many firms and households as they interact in markets for goods and services A) Traditional Economy. B) Market Economy. C) Command Economy. D) Mixed Economy. Show Answer Correct Answer: B) Market Economy. 24. Comparisons of per capita gross domestic product between countries ..... A) Provide a good measure of relative living standards. B) Is a useless task because each country uses a different method of calculating. C) Provide information about productive capabilities, not relative standards of living. D) Provide an accurate gauge of absolute standards of living. Show Answer Correct Answer: A) Provide a good measure of relative living standards. 25. Define inflation and discuss its causes. A) Inflation is the rate at which the general level of prices for goods and services is rising and, consequently, purchasing power is falling. B) Inflation is the rate at which the general level of prices for goods and services is rising, but purchasing power remains unaffected. C) Inflation is the rate at which the general level of prices for goods and services is falling and, consequently, purchasing power is rising. D) Inflation is the rate at which the general level of prices for goods and services remains constant, and purchasing power remains stable. Show Answer Correct Answer: A) Inflation is the rate at which the general level of prices for goods and services is rising and, consequently, purchasing power is falling. 26. Which of these is MOST LIKELY to occur after the government increases taxes? A) The national debt increases. B) Consumer spending decreases. C) Annual deficits increase. D) Government programs decrease. Show Answer Correct Answer: B) Consumer spending decreases. 27. Which of the following is not a topic studied in Macroeconomics? A) Unemployment rate. B) Price of Toyota cars. C) Gross domestic product. D) Inflation rate. Show Answer Correct Answer: B) Price of Toyota cars. 28. When prices are low, the owners of businesses are less likely to create and sell more products. A) Law of Supply. B) Law of Demand. C) Law of Supply and Demand. D) Market Price. Show Answer Correct Answer: A) Law of Supply. 29. What are some examples of natural resources? A) Truck, building, container, computer. B) Trees, cows, oil, water, rocks, minerals. C) Starting a business for profit. D) Doctor, Engineer, Teacher, Worker. Show Answer Correct Answer: B) Trees, cows, oil, water, rocks, minerals. 30. For Dunkin Donuts, what would their purchasing tea bags to make iced tea be considered? A) Taxes. B) Wages. C) Demand. D) Input costs. Show Answer Correct Answer: D) Input costs. ← 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