This quiz works best with JavaScript enabled. Home > Finance > Economics > Macroeconomics > Macroeconomics – Quiz 105 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 105 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of the following goods would be considered scarce? I.Education II.Gold III. Time A) I only. B) II only. C) III only. D) I and II only. E) I, II and III. Show Answer Correct Answer: E) I, II and III. 2. What's an embargo? A) A type of currency. B) A complete ban on trade between countries. C) A tax on an import. D) An agreement between countries to have free trade between them. Show Answer Correct Answer: B) A complete ban on trade between countries. 3. Which of the following is consistent with the law of demand? A) A decrease in the price of a gallon of milk causes a decrease in the quantity of milk demanded. B) An increase in the price of soda causes a decrease in the quantity of soda demanded. C) An increase of the price of tape causes an increase in the quantity of tape demanded. D) A decrease in the price of juice causes no change in the quantity of juice demanded. Show Answer Correct Answer: B) An increase in the price of soda causes a decrease in the quantity of soda demanded. 4. The forgone benefit that would have been derived from an option not chosen A) Trade Off. B) Supply. C) Opportunity Cost. D) Unemployment. Show Answer Correct Answer: C) Opportunity Cost. 5. A country's ....., or simply the ....., is the difference between its sales of assets to foreigners and its purchases of assets from foreigners during a given period. A) Balance of Payments on the Financial Account; Financial Account. B) Balance of Payments on the Current Account; Current Account. C) Merchandise Trade Balance; Trade Balance. D) Balance of Payments on Goods and Services; Goods and Services Account. Show Answer Correct Answer: A) Balance of Payments on the Financial Account; Financial Account. 6. A popular musical act announces a concert at a 10, 000 seat venue. Prices for tickets skyrocket so the venue announces that there will be 500 standing room only tickets offered. What concept does this demonstrate? A) Inelastic supply. B) Change in supply. C) Change in quantity supplied. D) Elastic supply. Show Answer Correct Answer: C) Change in quantity supplied. 7. If a factory used to make Ford cars is shut down at the same time that the price of Toyota cars decreases, what will happen to the market for Ford cars? A) Eq P decreases, but we don't know what happens to Eq Q. B) Eq P increases, but we don't know what happens to Eq Q. C) Eq Q decreases, but we don't know what happens to Eq P. D) Eq Q increases, but we don't know what happens to Eq P. Show Answer Correct Answer: C) Eq Q decreases, but we don't know what happens to Eq P. 8. The government revenue such as licenses and permits, petroleum royalty, interest, fees and penalties refers to A) Non tax revenue. B) Tax revenue. C) Government tax. D) Non-revenue receipts. Show Answer Correct Answer: A) Non tax revenue. 9. Which best represents the "law of supply" ? A) Producers offer more of a good at a lower price. B) The amount of goods available. C) Consumers want more of a good when the price is low. D) Producers offer more of a good at a higher price. Show Answer Correct Answer: D) Producers offer more of a good at a higher price. 10. A market in which there are many buyers and sellers of the same good or service, none of whom can influence the price at which the good or service is sold. A) Competitive Market. B) Command Market. C) Mixed Market. D) None of above. Show Answer Correct Answer: A) Competitive Market. 11. The type of goods where if income increases, the amount of goods consumed also increases is..... A) Superior goods. B) Normal goods. C) Inferior goods. D) Giffen goods. Show Answer Correct Answer: B) Normal goods. 12. The business cycle since World War II has been characterized by A) Uninterrupted expansion. B) Brief expansions alternating with lengthy recessions. C) Extended expansions alternating with brief recessions. D) Uninterrupted recession. Show Answer Correct Answer: C) Extended expansions alternating with brief recessions. 13. A situation in which quantity demanded is greater than quantity supplied is A) A surplus. B) A price ceiling. C) A price floor. D) A shortage. Show Answer Correct Answer: D) A shortage. 14. If an individual owns a corporation for which he is the only employee, which different types of federal tax will he have to pay? A) Federal income tax, self-employment tax, and federal unemployment tax (FUTA). B) Social Security tax, Medicare tax, and estate tax. C) Excise tax, gift tax, and customs duty. D) State income tax, sales tax, and property tax . Show Answer Correct Answer: A) Federal income tax, self-employment tax, and federal unemployment tax (FUTA). 15. Fiscal policy:an increase in govt purchases A) Shifts LM curve to right. B) Shifts LM curve to left. C) Shifts IS curve to left. D) Shifts IS curve to right. Show Answer Correct Answer: D) Shifts IS curve to right. 16. A hyper market has opened a self-service counter and caused the cashier to be dismissed. The unemployment of the cashier is categories as A) Under unemployment. B) Frictional unemployment. C) Structural unemployment. D) Cyclical unemployment. Show Answer Correct Answer: C) Structural unemployment. 17. According to the simple quantity theory of money and prices, a change in the money supply of 6.5 percent would, holding velocity constant, lead to a 6.5 percent change in A) Real GDP. B) Velocity. C) Aggregate supply. D) The price level. Show Answer Correct Answer: D) The price level. 18. Fiat money is ..... A) A type of money with intrinsic value. B) Any asset used as the medium of exchange. C) Any asset used as the unit of account. D) A type of money set by government decree. Show Answer Correct Answer: D) A type of money set by government decree. 19. Macroeconomics is a study of..... A) The entire economy. B) The behavior of individual firms. C) General price level [General price level]. D) Government units [Unit-unit kerajaan]. Show Answer Correct Answer: A) The entire economy. 20. Which restriction to trade causes prices to rise because consumers have fewer options? A) Inflation. B) Tariff. C) Embargo. D) Exchange rate. Show Answer Correct Answer: C) Embargo. 21. A country experiences a long strike by railway workers.What would be the macroeconomic impact of such a strike? A) National output would fall. B) Railway workers would lose income. C) The demand for taxi services would rise. D) The profits of railway operators would fall. Show Answer Correct Answer: A) National output would fall. 22. If the federal government has a budget surplus and enacts expansionary fiscal policy, then A) The demand for loans shifts to the left. B) The demand for loans shifts to the right. C) The supply of loanable funds shifts to the right. D) The supply of loanable funds shifts to the left. Show Answer Correct Answer: D) The supply of loanable funds shifts to the left. 23. Which is the equation for unemployment rate A) (E+U)/LF. B) LF/U. C) E/LF. D) U/LF. Show Answer Correct Answer: D) U/LF. 24. Which of the following does not represent a leakage or a withdrawal in the circular flow of income? A) Taxes. B) Government expenditures. C) Imports. D) Savings. Show Answer Correct Answer: B) Government expenditures. 25. Under-developed nations is the definition for which term A) Superpower. B) Platt Amendment. C) Despotic rule. D) Third World. Show Answer Correct Answer: D) Third World. 26. The opposite of inflation is..... A) Degradation. B) Deflator. C) Deflation. D) Depreciation. Show Answer Correct Answer: C) Deflation. 27. Which one of the following impacts is LEAST likely to occur as a result of expansionary fiscal policy? A) An increase in unemployment. B) An increase in the government debt. C) An increase in aggregate expenditure. D) An increase in equilibrium output. E) An increase in inflation. Show Answer Correct Answer: A) An increase in unemployment. 28. In 2016, output in Indonesia rose by %5. Which of the government objectives does this meet. A) Full employment. B) Economic growth. C) Balance of payment stability. D) Price stability. Show Answer Correct Answer: B) Economic growth. 29. A country is said to be experiencing inflation when ..... A) Prices of most goods and services are rising over time. B) Total output is falling over time. C) Total output is rising over time. D) Prices of most goods and services are falling over time. Show Answer Correct Answer: A) Prices of most goods and services are rising over time. 30. In the circular flow diagram, which of the following is true in resource or factor markets? A) Households sell resources to business firms. B) Households sell products to business firms. C) Business firms sell goods and services to households. D) Business firms sell resources to households. Show Answer Correct Answer: A) Households sell resources to business firms. ← 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