This quiz works best with JavaScript enabled. Home > Finance > Economics > Macroeconomics > Macroeconomics – Quiz 110 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 110 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. According to Dusenberry, income-consumption relations are A) Reversible. B) Irreversible. C) Independent. D) None of these. Show Answer Correct Answer: B) Irreversible. 2. Which of the following household purchases will be counted as part of gross private investment in a country's gross domestic product? A) Government bonds. B) A newly constructed home. C) Shares of a company stock. D) A new car for personal use. E) Corporate bonds. Show Answer Correct Answer: B) A newly constructed home. 3. Any arrangement that allows buyers and sellers to exchange things A) Trade. B) Deal. C) Sale. D) Market. Show Answer Correct Answer: D) Market. 4. Choose the Best Answer.Looking at the Gini coefficient schedule, the hypothetical national economy has the most desirable income distribution in what year? A) 2006. B) 2007. C) 2010. D) 2002. Show Answer Correct Answer: D) 2002. 5. A good in which the quantity demanded falls as income rises, and in which quantity demanded rises an income falls Ex:ramen noodles, spam, spaghetti-os A) Substitute good. B) Normal good. C) Complement good. D) Inferior good. Show Answer Correct Answer: D) Inferior good. 6. The government borrows money to cover any deficits it runs by A) Increasing taxes. B) Borrowing money from the federal government. C) Issuing bonds. D) Borrowing money from banks. Show Answer Correct Answer: C) Issuing bonds. 7. When taxes decrease, consumption A) Increases, so aggregate demand shifts right. B) Increases, so aggregate supply shifts right. C) Decreases, so aggregate demand shifts left. D) Decreases, as aggregate supply shifts left. Show Answer Correct Answer: A) Increases, so aggregate demand shifts right. 8. Circular flow model A) A model that shows the flow of goods and services and the interaction among households, businesses, and banks. B) A property of an efficient market whereby all goods and services are optimally distributed among buyers in an economy. C) TRICE-Technology (can both increase or decrease the curve), Related Prices (substitutes/compliments), Input prices, Competition, Expectations. D) The ability to produce more of a given product using a given amount of resources. Show Answer Correct Answer: A) A model that shows the flow of goods and services and the interaction among households, businesses, and banks. 9. TRUE or FALSE:A rise in unemployment associated with a recession would be classified as cyclical unemployment. A) FALSE. B) TRUE. Show Answer Correct Answer: B) TRUE. 10. Results from time spent between jobs when a worker is searching for, or transitioning from one job to another A) Structural Unemployment. B) Seasonal Unemployment. C) Cyclical Unemployment. D) Frictional Unemployment. Show Answer Correct Answer: D) Frictional Unemployment. 11. What will result in the federal government continuing to create a budget deficit? A) Interest rates will decline. B) GDP will decrrease. C) State governments will thrive. D) National debt will increase. Show Answer Correct Answer: D) National debt will increase. 12. Market competitors are least likely to use advertising as a tool of differentiationin an industry structure identified as: A) Monopoly. B) Perfect competition. C) Monopolistic competition. D) None of above. Show Answer Correct Answer: B) Perfect competition. 13. It is the percentage of the tax that has to be paid by the taxpayer. A) Tax rate. B) Tax base. C) Progressive tax. D) Regressive tax. Show Answer Correct Answer: A) Tax rate. 14. Who must legally pay Social Security and Medicare taxes? A) Employers. B) Employees. C) Both employers and employees. D) Neither employers nor employees. Show Answer Correct Answer: C) Both employers and employees. 15. Transfer payments A) Transfer expenses. B) Consumption. C) Nominal GDP. D) Indicators. Show Answer Correct Answer: A) Transfer expenses. 16. Is this counted in the GDP of the US?The services of a mechanic in fixing the radiator on his own car. A) Yes. B) No. Show Answer Correct Answer: B) No. 17. Match this definition with the correct Mixed Economic System: "Ownership of factors and resources of production is split; there is some private ownership, but the government may own some factors in order to provide for a few basic needs of their citizens." A) Socialism. B) Communism. C) I give up. D) Capitalism. Show Answer Correct Answer: A) Socialism. 18. A fully anticipated expansionary fiscal policy will cause the price level and real output to change in which of the following ways in the long run? (1) Price Level-(2) Real Output A) Decrease-(2) Decrease. B) Increase-(2) Increase. C) Not change-(2) Not change. D) Increase-(2) Not change. E) Decrease-(2) Increase. Show Answer Correct Answer: D) Increase-(2) Not change. 19. How is aggregate demand calculated? A) By adding together the total spending on goods and services in an economy over a specific period of time. B) By multiplying the total spending on goods and services in an economy over a specific period of time. C) By dividing the total spending on goods and services in an economy over a specific period of time. D) By subtracting the total spending on goods and services in an economy over a specific period of time. Show Answer Correct Answer: A) By adding together the total spending on goods and services in an economy over a specific period of time. 20. Unemployed because their human capital does not match the needs of employers hiring in the labor market A) Cyclical. B) Frictional. C) Seasonal. D) Structural. Show Answer Correct Answer: D) Structural. 21. Predicting how an increase in the price of pizza will affect the total revenue of a pizza restaurant A) Macroeconomics. B) Microeconomic. Show Answer Correct Answer: B) Microeconomic. 22. The United States limits the annual amount of raw cotton coming into the country from other nations. This is an example of A) A licensing fee. B) An embargo. C) A VER. D) An import quota. Show Answer Correct Answer: D) An import quota. 23. The Income Approach of Calculating GDP includes ..... A) All spending on final products in the year. B) All Income made factors of production. C) All costs on all products. D) The ammount of people involved in production. Show Answer Correct Answer: B) All Income made factors of production. 24. A business owner who prefers to maintain complete control of all business activities might consider structuring the venture as a(n) A) Franchise. B) General partnership. C) Sole proprietorship. D) Corporation. Show Answer Correct Answer: C) Sole proprietorship. 25. Assume the reserve requirement is five percent. If the Fed sells $ 10 million worth of government securities in the open market operation, then the money supply can potentially A) Increase by $ 200 million. B) Decrease by $ 50 million. C) Decrease by $ 200 million. D) Increase by $ 150 million. E) Increase by $ 50 million. Show Answer Correct Answer: C) Decrease by $ 200 million. 26. Tax on money or property that one living person gives to another. A) Gift tax. B) Property tax. C) Income tax. D) Estate tax. Show Answer Correct Answer: A) Gift tax. 27. Everything else held constant, a decrease in holdings of excess reserves will mean A) An increase in the money supply. B) An increase in discount loans. C) A decrease in the money supply. D) A decrease in checkable deposits. Show Answer Correct Answer: A) An increase in the money supply. 28. What does the Consumer Price Index (CPI) measure? A) Changes in the price of a specific product over time. B) Changes in the price of all goods and services over time. C) Changes in the purchasing power of consumers over time. D) Changes in the inflation rate over time. Show Answer Correct Answer: A) Changes in the price of a specific product over time. 29. When people change jobs or enter the workforce, this is: A) Structural Unemployment. B) Seasonal Unemployment. C) Cyclical Unemployment. D) Frictional Unemployment. Show Answer Correct Answer: D) Frictional Unemployment. 30. What causes inflation? A) Inflation occurs when there's an increase in production costs OR when demand for products and services increases faster than supply. B) Inflation occurs when there's an increase in production costs OR when demand for products and services increases slower than supply. C) Inflation occurs when there's a slower increase in production costs OR when demand for products and services increases faster than supply. D) None of above. Show Answer Correct Answer: A) Inflation occurs when there's an increase in production costs OR when demand for products and services increases faster than supply. ← 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