This quiz works best with JavaScript enabled. Home > Finance > Economics > Macroeconomics > Macroeconomics – Quiz 103 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 103 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. When any commercial bank is unable to meet financial obligation then it approaches Central Bank for financial accommodation this function of Central Bank is called A) Banker of bank. B) Controller of credit. C) Lender of last resort. D) Bank of Government. Show Answer Correct Answer: C) Lender of last resort. 2. The unemployment rate is the ratio of A) Dissatisfied to labor force. B) Unemployed to labor force. C) Seeking employment to labor force. D) Employed to labor force. Show Answer Correct Answer: C) Seeking employment to labor force. 3. External sources of public borrowing are A) Loans from the central bank. B) Loans from the international money market. C) Borrowing from financial institutions. D) Loans from commercial banks. Show Answer Correct Answer: B) Loans from the international money market. 4. The purchase of new capital goods (tools, instruments, machines, buildings) and additions to inventories A) Exports of goods and services. B) Real GDP. C) Investment. D) Net exports of goods and services. Show Answer Correct Answer: C) Investment. 5. What does the multiplier effect exemplify? A) How much the government spends from the national budget. B) How spending is magnified in the economy. C) How often the economy goes through various business cycles. D) How much consumers use from their income. Show Answer Correct Answer: B) How spending is magnified in the economy. 6. When our national import increases, ..... A) Demand for foreign exchange increase. B) Demand for foreign exchange decrease. C) Supply for foreign exchange increase. D) Supply for foreign exchange decrease. Show Answer Correct Answer: A) Demand for foreign exchange increase. 7. What section of the Keynesian aggregate supply curve is explained by idle resources? A) Section II. B) Section I. C) Section IV. D) Section III. Show Answer Correct Answer: B) Section I. 8. Macroeconomics explains the behavior of individual household and business firms. A) FALSE. B) TRUE. Show Answer Correct Answer: A) FALSE. 9. If the price on a product goes up the quantity demanded will go down. This follows the economic theory of: A) Law of Demand. B) Elasticity. C) Ceteris Paribus. D) Both A and C. Show Answer Correct Answer: D) Both A and C. 10. An analyst gathered the following market share data for an industry comprised of five companies:The industry's three-firm Herfindahl-Hirschmann Index is closest to: A) 0.185. B) 0.225. C) 0.235. D) None of above. Show Answer Correct Answer: B) 0.225. 11. If a bank pays 3% interest on savings, how much interest will it charge for loans? A) 3%. B) The discount rate. C) Less than 3%. D) More than 3%. Show Answer Correct Answer: D) More than 3%. 12. The taxing authority charges the same percentage rate of tax from each taxpayer, irrespective of income A) Expansionary Tax. B) Proportional Tax. C) Structural Tax. D) Frictional Tax. Show Answer Correct Answer: B) Proportional Tax. 13. An increase in inflation in the United States relative to the rate in France would make: A) US goods relatively less expensive in the United States and in France. B) French goods relatively less expensive in the United States and US goods relatively more expensive in France. C) French goods relatively more expensive in the United States and in France. D) French goods relatively more expensive in the United States and US goods relatively less expensive in France. Show Answer Correct Answer: B) French goods relatively less expensive in the United States and US goods relatively more expensive in France. 14. In order to help the economy grow, the government can A) Lower taxes. B) Raise taxes. C) Increase spending. D) Decrease spending. Show Answer Correct Answer: C) Increase spending. 15. Gross Domestic Product includes. Consumer spending II. Government spending III. Fixed investment A) I and II only. B) II and III only. C) I and III only. D) I, II, III. Show Answer Correct Answer: D) I, II, III. 16. An ..... operation is a purchase or sale of government debt by the Fed. A) Open-Market. B) Discount Window. C) Central. D) Closed-Market. Show Answer Correct Answer: A) Open-Market. 17. A firm faces a perfectly elastic demand curve, if ..... A) ATC = AVC. B) AR = MC. C) MR = AR. D) MC = MR. Show Answer Correct Answer: C) MR = AR. 18. Ben's savings from his part-time job are in a savings account paying a fixed rate of interest. A) Harmed from unanticipated inflation. B) Benefits from unanticipated inflation. C) Uncertain. D) None of above. Show Answer Correct Answer: A) Harmed from unanticipated inflation. 19. Farm helpers are unemployed when the cropping season is over. A) Seasonal. B) Frictional. C) Cyclical. D) Structural. Show Answer Correct Answer: A) Seasonal. 20. The followings are true for three (3) types of unemployment, EXCEPT A) Structural. B) Frictional. C) Cyclical. D) Processional. Show Answer Correct Answer: D) Processional. 21. T.V., radio, washing machine are examples of ..... A) Semi-durable consumer goods. B) Capital goods. C) Durable consumer goods. D) Single-use consumer goods. Show Answer Correct Answer: C) Durable consumer goods. 22. Spending on education and training to reduce labor immobility is an example of A) Tight monetary policy. B) Market-based supply-side policies. C) Tight fiscal policy. D) Interventionist supply-side policies. Show Answer Correct Answer: D) Interventionist supply-side policies. 23. A statistical series used to measure price changes for a representative sample of frequently used household items is called the A) Consumer price index. B) Producer price index. C) Composite index of leading economic indicators. D) Implicit GDP price deflator. Show Answer Correct Answer: A) Consumer price index. 24. Which is NOT a characteristic of a monopoly? A) Seller sets the market price. B) Entry into the market is easy. C) One seller. D) Firm sells a unique product. Show Answer Correct Answer: B) Entry into the market is easy. 25. Hyperinflations occur when the government runs a large budget ....., which the central bank finances with a substantial monetary ..... A) Deficit, expansion. B) Deficit, contraction. C) Surplus, expansion. D) Surplus, contraction. Show Answer Correct Answer: A) Deficit, expansion. 26. ..... are stocks of foreign currency that governments maintain to buy their own currency on the foreign exchange market. A) Foreign Exchange Reserves. B) Floating Exchange Rate. C) Exchange Market Intervention. D) Foreign Exchange Controls. Show Answer Correct Answer: A) Foreign Exchange Reserves. 27. Increases aggregate demand (an increase of purchases of goods and services, a cut in taxes, a increase in government transfers) A) Discretionary Fiscal Policy. B) Contractionary Fiscal Policy. C) Expansionary Fiscal Policy. D) Budget. Show Answer Correct Answer: C) Expansionary Fiscal Policy. 28. The ..... is the exchange rate at which the quantity of a currency demanded in the foreign exchange market is equal to the quantity supplied. A) Equilibrium Exchange Rate. B) Stable Exchange Rate. C) Currency Rate of Equilibrium. D) Currency Demand Rate. Show Answer Correct Answer: A) Equilibrium Exchange Rate. 29. What element listed is a noble gas? A) Phosphourous. B) Argon. C) Oxygen. D) Lithium. Show Answer Correct Answer: B) Argon. 30. Which of the following groups of people will benefit from unexpected inflation? A) Savers. B) Fixed income investors. C) Consumers. D) Creditors. E) Debtors. Show Answer Correct Answer: E) Debtors. ← 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