This quiz works best with JavaScript enabled. Home > Finance > Economics > Macroeconomics > Macroeconomics – Quiz 109 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 109 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. In the US today, the dollar is considered to be ..... A) Commodity-Backed Money. B) Commodity Money. C) Cryptocurrency. D) Fiat Money. Show Answer Correct Answer: D) Fiat Money. 2. Which of the following is true of the meaning of a government budget deficit? A) Government revenue equals government expenditure. B) Government revenue is greater than government expenditure. C) Government revenue is less than government expenditure. D) All the points are correct. Show Answer Correct Answer: C) Government revenue is less than government expenditure. 3. Dave has gone back to school to learn computer programming. Dave's investment in ..... should increase his own labor productivity. A) Technology. B) Physical capital. C) Environmental capital. D) Financial capital. E) Human capital. Show Answer Correct Answer: E) Human capital. 4. The opportunity cost of producing an additional unit of product A is A) All of the human and capital resources used to produce product A. B) The retail price paid for product A. C) The amount of product B that cannot now be produced because of product A. D) The profit that was earned from producing product A. Show Answer Correct Answer: C) The amount of product B that cannot now be produced because of product A. 5. Monetary Policy is the use of interest rates by the central bank to keep the economy stable. A) False. B) True. Show Answer Correct Answer: B) True. 6. Imagine that influential financial experts start to warn of a severe upcoming financial crisis. Which of the following will likely occur? A) Stock market decline and decrease in consumer spending. B) Decrease in consumer spending and increase in the stock market. C) Stable stock market and increase in consumer confidence. D) Increase in consumer spending and stock market growth. Show Answer Correct Answer: A) Stock market decline and decrease in consumer spending. 7. In a closed economy, ..... is not included? A) Government. B) Households. C) Foreign sector. D) Firms. Show Answer Correct Answer: C) Foreign sector. 8. Who controls the factors of production in a planned economy? A) Individuals. B) Government. C) Oligarchs. D) Classes. Show Answer Correct Answer: B) Government. 9. Suppose autonomous consumption is $ 20, investment is $ 30, government expenditure is 40, net exports 10. Assume the mpc=0.7 and the tax rate=0.2. What is the value of the multiplier for the open economy? A) Multiplier = 2.27. B) Multiplier = 1/1-b(1-t) + m. C) Multiplier = 1/1-b. D) Multiplier = 3.33. Show Answer Correct Answer: A) Multiplier = 2.27. 10. Examples of direct taxes do not include A) Inheritance tax. B) Capital gains tax. C) New car registration tax. D) Income tax. Show Answer Correct Answer: C) New car registration tax. 11. How does unemployment impact the overall economy? A) Unemployment reduces government spending on unemployment benefits. B) Unemployment leads to an increase in consumer spending. C) Unemployment impacts the overall economy by reducing consumer spending, decreasing tax revenue, and increasing government spending on unemployment benefits. D) Unemployment has no impact on the overall economy. Show Answer Correct Answer: C) Unemployment impacts the overall economy by reducing consumer spending, decreasing tax revenue, and increasing government spending on unemployment benefits. 12. Yesenia stopped at her favorite pizza place and ordered a slice of pizza. She paid the cashier $ 2.50 for the pizza and sat down to eat it. What role did money serve in this situation? A) It was a medium of exchange. B) It was a store of value. C) It was a standard of value. D) It was a unit of account. Show Answer Correct Answer: A) It was a medium of exchange. 13. The productivity of labor in an economy does not automatically increase by A) Increasing the population size. B) Reducing the search costs of employment. C) Raising the skills base of labor. D) Creating incentives to improve labor mobility. Show Answer Correct Answer: A) Increasing the population size. 14. The..... occurs because there are transactions with insufficient data or information resources. A) Total National Income. B) Gross National Product. C) Government Spending. D) Statistical Discrepancy. Show Answer Correct Answer: D) Statistical Discrepancy. 15. What is a federal budget deficit? A) All the debt owed by the federal government. B) When government spends more than it brings in. C) When government spends the same amount it brings in. D) Value of all goods and services produced in a country. Show Answer Correct Answer: B) When government spends more than it brings in. 16. National income must be at its equilibrium level when A) Imports equal exports. B) Injections equal withdrawals. C) Savings equal investment. D) Government revenue equals government expenditure. Show Answer Correct Answer: B) Injections equal withdrawals. 17. How does reducing direct taxes on firms affect their international competitiveness? A) Less competitive. B) No change. C) More competitive. D) None of above. Show Answer Correct Answer: C) More competitive. 18. A country has a slow rate of growth of productivity and rising cyclical unemployment. All other things being equal, which measures are most likely to increase the rate of growth of productivity and reduce cyclical unemployment? A) Increased investment and increased saving. B) More government spending on training and a higher exchange rate. C) Decreased benefit payments and a lower budget deficit. D) Lower taxation on firms and lower interest rates. Show Answer Correct Answer: D) Lower taxation on firms and lower interest rates. 19. Which is a likely effect of increasing tariffs on imported cars? A) Car production will decline. B) The price consumers pay for imported cars will rise. C) Unemployment rates will decrease. D) More cars will be exported. Show Answer Correct Answer: B) The price consumers pay for imported cars will rise. 20. The sum of consumer surplus and producer surplus A) Social surplus. B) Consumer surplus. C) Producer surplus. D) Demand. Show Answer Correct Answer: A) Social surplus. 21. Change in quantity demanded due to a change in price that alters a consumers real income A) Inelastic. B) Total expenditures. C) Elasticity. D) Income effect. Show Answer Correct Answer: D) Income effect. 22. A defensive expenditure is defined as ..... A) An expenditure that increases human welfare. B) An expenditure that only provides long-term benefits. C) An expenditure that maintains the status quo. D) An expenditure that decreases human welfare. E) An expenditure that fails to provide long-term investment benefits. Show Answer Correct Answer: C) An expenditure that maintains the status quo. 23. Food processor used by the households in their kitchen is an example of: A) Capital goods. B) Intermediate goods. C) Consumption goods. D) None of these. Show Answer Correct Answer: C) Consumption goods. 24. Which of the following would be an example of an intermediate good or service? A) A calculator purchased by a college student for taking exams. B) Gasoline purchased by an insurance agent to visit clients at their homes. C) A car purchased by a student's parents and given to the student. D) Tuition paid by a student at a state university. Show Answer Correct Answer: B) Gasoline purchased by an insurance agent to visit clients at their homes. 25. Read the text and answer the question.In 2017, Congress passed the Tax Cuts and Jobs Act. The law reduced income tax rates and increased standard deductions.What was the Tax Cuts and Jobs Act an example of? A) Expansionary monetary policy. B) Contractionary fiscal policy. C) Contractionary monetary policy. D) Expansionary fiscal policy. Show Answer Correct Answer: A) Expansionary monetary policy. 26. Previously one dollar was equal to 69 rupees, now the value of one dollar is equal to 85 rupees. What happens to value of rupee A) Depreciated. B) Appreciated. C) Remained same. D) None of the above. Show Answer Correct Answer: A) Depreciated. 27. If a car is purchased by a taxi-operator, it will be regarded as a: A) Capital good. B) Intermediate good. C) Final good. D) Both (a) and (c). Show Answer Correct Answer: D) Both (a) and (c). 28. The cost of every choice we make is called A) Monetary trade policy. B) Auto trade-in. C) True choice. D) A trade-off. Show Answer Correct Answer: D) A trade-off. 29. Monetary and fiscal policies have to do with ..... A) Microeconomics. B) Macroeconomics. Show Answer Correct Answer: B) Macroeconomics. 30. The Fed does not A) Print money. B) Control the money supply. C) Regulate banks. D) Serve as a lender of last resort. Show Answer Correct Answer: A) Print money. ← 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