This quiz works best with JavaScript enabled. Home > Finance > Economics > Macroeconomics > Macroeconomics – Quiz 108 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 108 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Microeconomics analyses choices in various situations. Which area of economic study does it not include? A) Costs and revenues of a firm. B) Individual consumer behaviour. C) Policies for economic growth. D) Wages for different occupations. Show Answer Correct Answer: C) Policies for economic growth. 2. In which situation would the borrower likely benefit the most? A) Kiara takes out a five-year car loan with a fixed interest rate just before a long period of rapid inflation. B) Sondra takes out a five-year car loan with a fixed interest rate just before a long period of rapid deflation. C) Paige takes out a five-year car loan with a variable interest rate just before a long period of rapid inflation. D) Gina takes out a five-year car loan with a fixed interest rate just before a long period of rapid deflation. Show Answer Correct Answer: A) Kiara takes out a five-year car loan with a fixed interest rate just before a long period of rapid inflation. 3. The interest rate the Federal Reserve charges on loans it makes to banks defines which of the following terms? A) Open market operations. B) Supply side economics. C) Discount rate. D) Reserve requirement. Show Answer Correct Answer: C) Discount rate. 4. What does stability in the economy provide? A) Confidence for consumers, producers, and investors. B) Opportunities for technological progress. C) Higher employment rates. D) Fluctuating price levels. Show Answer Correct Answer: A) Confidence for consumers, producers, and investors. 5. Activities which are purposely hidden from the view of the government in order to avoid taxes is known as ..... A) Underground Economic Activities. B) Household Production. C) Economic Activities. D) All of the options. Show Answer Correct Answer: A) Underground Economic Activities. 6. This GDP takes into account the adjustment for Inflation: A) Real. B) Unemployment Rate. C) Nominal. D) CPI. Show Answer Correct Answer: A) Real. 7. A continuous increase in the consumer price index (CPI) is A) Stagflation. B) Inflation. C) Deflation. D) Disinflation. E) Recession. Show Answer Correct Answer: B) Inflation. 8. This reflects those who are actively seeking employment AND those who are currently employed. A) Unemployment rate. B) Underemployed. C) Full employment. D) Labor force. Show Answer Correct Answer: D) Labor force. 9. How many sectors of working occupation do economist generally use? A) 3. B) 2. C) 4. D) 5. Show Answer Correct Answer: A) 3. 10. The more valuable currency has A) Depreciated. B) Depleted. C) Amortizes. D) Appreciated. Show Answer Correct Answer: D) Appreciated. 11. Which is the largest component of government receipts? A) Fuel taxes. B) Corporate taxes. C) Excise taxes. D) Personal income taxes. Show Answer Correct Answer: D) Personal income taxes. 12. If a country's consumer price index was 200 last year and is 190 this year, which of the following must be true for the country from last year to this year? A) The inflation rate has increased by 5 percent. B) The price level has decreased by 5 percent. C) The average quality of the goods produced has increased. D) The quantity of goods produced has decreased. E) The unemployment rate has decreased by 5 percent . Show Answer Correct Answer: B) The price level has decreased by 5 percent. 13. This is the money that is gained after all expenses are paid for. A) Profit. B) Income. C) Cash. D) Wages. Show Answer Correct Answer: A) Profit. 14. The lost opportunity cost of any good or service produced by each country is the same. A) True. B) Lie. Show Answer Correct Answer: B) Lie. 15. The four components of GDP are? A) Consumer SpendingNet ExportsGovernment spendingBusiness Investments. B) Government BuyingBusiness SpendingNet ImportsConsumer Investments. C) Family. D) None of above. Show Answer Correct Answer: A) Consumer SpendingNet ExportsGovernment spendingBusiness Investments. 16. What is the not the macroeconomics goals? A) Full employment or low unemployment. B) Price stability or low inflation. C) Decreasing the price of the goods. D) Fair and distribution of income. Show Answer Correct Answer: C) Decreasing the price of the goods. 17. Households don't save money and spend their entire earnings to buy goods and services sold by the firms. A) Two-Sector. B) Five-Sector. C) Four-Sector. D) Three-Sector. Show Answer Correct Answer: A) Two-Sector. 18. ..... Price Level is a measure of the overall level of prices in the economy. A) Producer. B) Aggregate. C) Market. D) Consumer. Show Answer Correct Answer: B) Aggregate. 19. Identify the one that is not a primary function of a bank. A) Credit creation. B) Fund transfer. C) Accepting deposit. D) Advancing loans. Show Answer Correct Answer: A) Credit creation. 20. The extra benefit producers receive from selling a good or service, measured by the price the producer actually received minus the price the producer would have been willing to accept A) Producer surplus. B) Shift in demand. C) Shift in supply. D) Shortage. Show Answer Correct Answer: A) Producer surplus. 21. An economy experiences inflationary pressures when the equilibrium level of output is A) Too low. B) Above the full employment level of output. C) Equal to the full employment level of output. D) Decreasing. E) In long-run equilibrium. Show Answer Correct Answer: B) Above the full employment level of output. 22. In the circular flow diagram, which of the following is NOT a factor of production? A) Labor. B) Money. C) Land. D) Capital. Show Answer Correct Answer: B) Money. 23. Net investment is equal to: A) Gross investment / depreciation. B) Gross investment x depreciation. C) Gross investment + depreciation. D) Gross investment-depreciation. Show Answer Correct Answer: D) Gross investment-depreciation. 24. If the government brings in more tax revenue than it spends, this will create a ..... A) Budget deficit. B) Budget surplus. C) Trade deficit. D) Trade surplus. Show Answer Correct Answer: B) Budget surplus. 25. When no individual would be better off doing something different, this is called ..... ? A) Equity. B) Equilibrium. C) Equilateral. D) Equator. Show Answer Correct Answer: B) Equilibrium. 26. Which of the following is a part of Investment in macroeconomics? A) Purchasing machinery for a factory. B) Paying rent for an apartment. C) Buying groceries. D) Spending on healthcare. Show Answer Correct Answer: A) Purchasing machinery for a factory. 27. Which of these is NOT an accurate statement about banking regulation? A) From the Mid-1990s until the global financial crisis of 2007-9, in many countries, the financial sector was increasingly deregulated. B) The European Central Bank has been given the responsibility to supervise banks. C) After the global financial crisis of 2007-9, the financial sector in the EU was further deregulated. D) In the US, the Glass-Steagall act originally separated investment banks from retail banks. E) All of these statements are accurate. Show Answer Correct Answer: C) After the global financial crisis of 2007-9, the financial sector in the EU was further deregulated. 28. The main advantages of a monetary system of exchange compared to a barter system is the increased ..... A) Time devoted to shopping. B) Ability to record transactions. C) Time necessary to find trading partners. D) Efficiency in arranging transactions. Show Answer Correct Answer: D) Efficiency in arranging transactions. 29. An engine used in the final production of a car is said to be a ..... in terms of GDP? A) Final Good. B) Intermediate Good. C) Second Hand Good. D) Luxury Item. Show Answer Correct Answer: B) Intermediate Good. 30. Efficiency means that A) Society is conserving resources in order to save them for the future. B) Society's goods and services are distributed equally among societies members. C) Society's goods and services are distributed fairly, though not necessarily equally, among societies members. D) Society is getting maximum benefits from its scarce resources. E) Society is getting the minimum benefits from its scarce resources. Show Answer Correct Answer: D) Society is getting maximum benefits from its scarce resources. ← 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