This quiz works best with JavaScript enabled. Home > Finance > Economics > Macroeconomics > Macroeconomics – Quiz 104 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 104 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What is one advantage of a free market? A) Consumers have no influence over the goods and services produced. B) Producers have no incentive to meet consumer demands. C) Public goods are overproduced. D) Resources are efficiently allocated based on consumer preferences. Show Answer Correct Answer: D) Resources are efficiently allocated based on consumer preferences. 2. Those inflows of money to the government account against which no liability of repayment is created, is called A) Capital expenditure. B) Revenue receipts. C) Revenue expenditure. D) Capital receipts. Show Answer Correct Answer: B) Revenue receipts. 3. The United States has a ..... economy. A) Mixed. B) Free. C) Command. D) Unregulated. Show Answer Correct Answer: A) Mixed. 4. ..... refers to a decrease in price level. A) Deflation. B) Hyperinflation. C) Stagflation. D) Disinflaation. Show Answer Correct Answer: A) Deflation. 5. People who are actively looking for a job but aren't employed A) Unemployed. B) Labor Force. C) Underemployed. D) CPI. Show Answer Correct Answer: A) Unemployed. 6. This is an obligation of repayment, usually including principal plus interest; any time you owe someone money. A) Compound interest. B) Emergency fund. C) APR. D) Debt. Show Answer Correct Answer: D) Debt. 7. Which of the following would result in the largest increase in aggregate demand? A) A $ 30 billion increase in military expenditure and a $ 30 billion open market purchase of government securities. B) A $ 30 billion increase in military expenditure and a $ 30 billion open market sale of government securities. C) A $ 30 billion tax decrease and a $ 30 billion open market sale of government securities. D) A $ 30 billion tax increase and a $ 30 billion open market purchase of government securities. E) A $ 30 billion increase in social security payments and a $ 30 billion open market sale of government securities. Show Answer Correct Answer: A) A $ 30 billion increase in military expenditure and a $ 30 billion open market purchase of government securities. 8. The loss in social surplus that occurs when a market produces an inefficient quantity A) Price Floor. B) Social Surplus. C) Shift in Demand. D) Deadweight Loss. Show Answer Correct Answer: D) Deadweight Loss. 9. What is a likely effect of a stronger dollar? (appreciation) A) American exports would be more expensive for international consumers. B) American exports would be less expensive for international consumers. C) Imported goods and services would be more expensive for American consumers. D) American goods and services would be more expensive for American consumers. Show Answer Correct Answer: A) American exports would be more expensive for international consumers. 10. Investment in human capital shifts the aggregate production function: A) Rightward. B) Downward. C) Upward. D) Inward. E) Leftward. Show Answer Correct Answer: C) Upward. 11. Which of the following would most likely be implemented to encourage consumer spending for major purchases? A) A plan for the Fed to sell bonds. B) A policy to restrict bank lending. C) A plan to increase state sales tax rates. D) A policy to reduce interest rates. Show Answer Correct Answer: D) A policy to reduce interest rates. 12. What is the growth of Real GDP, Nominal GDP and the value of the deflator for 2021, if we use 2020 as the base year? A) PIB R 21=50%PIB N 21=50%Deflactor= 1. B) PIB R 21=50%PIB N 21=200%Deflactor= 4. C) PIB R 21=200%PIB N 21=200%Deflactor= 1. D) PIB R 21=200%PIB N 21=50%Deflactor= 0, 25. Show Answer Correct Answer: B) PIB R 21=50%PIB N 21=200%Deflactor= 4. 13. Wage rates influence the SRAS A) True. B) False. Show Answer Correct Answer: A) True. 14. What is a federal law that makes it illegal to force workers into joining a union? A) Right to Work Law. B) Non Union Law. C) Union Law. D) Anti-Union Law. Show Answer Correct Answer: A) Right to Work Law. 15. Congress and the President might reduce taxes if they wanted to A) Slow down a rapid rise in interest rates. B) Decrease business spending on plant and equipment. C) Slow down the rate of inflation. D) Increase consumer spending and stimulate the economy. Show Answer Correct Answer: D) Increase consumer spending and stimulate the economy. 16. The Echelon II unit at BKF which is related to Economic Growth indicators is A) APBN Policy Center. B) The third UE.II is related to Economic Growth indicators. C) Center for Macroeconomic Policy. D) Center for State Revenue Policy. Show Answer Correct Answer: B) The third UE.II is related to Economic Growth indicators. 17. Which of these is NOT a monetary policy tool? A) Reserved Requirements. B) Balance Accounts. C) Open Market Operation. D) Discount rate. Show Answer Correct Answer: B) Balance Accounts. 18. Higher budget deficits would tend to A) Raise interest rates. B) Reduce investment. C) Reduce the growth rate of the capital stock. D) Do all of the above. Show Answer Correct Answer: D) Do all of the above. 19. Which of the following is not correct about "outsourcing?" A) It involves a company hiring another country to do certain work activities. B) It increases costs of producing goods/ services. C) Companies that outsource often open branches in developing countries. D) It can reduce labor costs. Show Answer Correct Answer: B) It increases costs of producing goods/ services. 20. When you calculate your true costs of going to college, what portion of your room-and-board expenses should be included? A) Your full room-and-board expenses should always be included. B) None of your room-and-board expenses should ever be included. C) You should include only the amount by which your room-and-board expenses exceed the income you earn while attending college. D) You should include only the amount by which your room-and-board expenses exceed the expenses for rent and food that you would incur if you were not in college. Show Answer Correct Answer: D) You should include only the amount by which your room-and-board expenses exceed the expenses for rent and food that you would incur if you were not in college. 21. What will happen to Aggregate Demand when interest rate increases? A) Increase. B) Decrease. C) Indeterminate. D) None of above. Show Answer Correct Answer: B) Decrease. 22. The relationship between quantity supplied and price is ....., and the relationship between quantity demanded and price is ..... A) Direct, direct. B) Inverse, direct. C) Direct, inverse. D) Strong, weak. E) Inverse, inverse. Show Answer Correct Answer: C) Direct, inverse. 23. Which of the following is not an alternative measure of well-being discussed in the text? A) The Human Development Index. B) The Better Life Index. C) The Genuine Progress Indicator. D) The Happy Planet Index. E) All of these are legitimate indexes discussed in the text. Show Answer Correct Answer: E) All of these are legitimate indexes discussed in the text. 24. All else equal, when a nation invests in infrastructure, technology and human capital, the result is likely to be A) An increase in the natural rate of unemployment. B) A leftward shift in the SRAS curve. C) A contraction in the business cycle. D) Long-run economic growth. E) Higher unemployment rates. Show Answer Correct Answer: D) Long-run economic growth. 25. How are economic transactions shaped in a traditional economy? A) Each community decides who will produce and who will buy. B) The elders decide based on the way things have always been done. C) The three basic questions of production do not arise in this type of economy. D) Individuals form networks to buy, sell and trade as they choose. Show Answer Correct Answer: B) The elders decide based on the way things have always been done. 26. Who "owns" most of the U.S. debt? A) American citizens. B) India. C) England. D) The International Monetary Fund. Show Answer Correct Answer: A) American citizens. 27. Multiple producers in a market Consumer choicesNo barriers to market entry The above are aspects of which characteristic of the American economic system? A) Property rights. B) Binding contracts. C) Profit motive. D) Competition. Show Answer Correct Answer: D) Competition. 28. Which one of the following is NOT a critique of GDP as a measure of human well-being? A) GDP fails to account for the benefits of social capital formation. B) GDP fails to account for the loss of leisure time. C) GDP includes the benefits of intermediate goods. D) GDP includes defensive expenditures. E) GDP fails to account for an unequal distribution of income. Show Answer Correct Answer: C) GDP includes the benefits of intermediate goods. 29. Those goods which satisfy human wants directly are called: A) Intermediate goods. B) Consumer goods. C) Capital goods. D) None of these. Show Answer Correct Answer: B) Consumer goods. 30. An example of a progressive tax would be a A) Social Security Tax. B) Sales Tax. C) Flat tax. D) Federal Income Tax. Show Answer Correct Answer: D) Federal Income Tax. ← 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