This quiz works best with JavaScript enabled. Home > Finance > Economics > Macroeconomics > Macroeconomics – Quiz 111 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 111 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. This term refers to the original amount of a loan OR the original amount of money invested. A) Principal. B) Rebate. C) Interest. D) Fixed Rate. Show Answer Correct Answer: A) Principal. 2. Everything else held constant A) Ceteris Paribus. B) Law of demand. C) Non-price determinants of demand. D) Non-price determinants of supply. Show Answer Correct Answer: A) Ceteris Paribus. 3. A macroeconomist who won Nobel Prize in Economics is- A) David Ricardo. B) Milton Friedman. C) Adam Smith. D) J. M. Keynes. Show Answer Correct Answer: B) Milton Friedman. 4. Someone without a job, but looking A) Structural Unemployment. B) Unemployed. C) Discouraged Workers. D) Frictional Unemployment. Show Answer Correct Answer: B) Unemployed. 5. A form of socialism that abolishes private ownership A) Communism. B) The "New" Socialism. C) Dictatorship. D) Capitalism. Show Answer Correct Answer: A) Communism. 6. How many regional banks are in the Federal Reserve System? A) 12. B) 8. C) 1. D) 50. Show Answer Correct Answer: A) 12. 7. Food processor used by the households in the 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. 8. Unemployment caused by an imbalance between the skills of workers and the requirements of employers A) Cyclical unemployment. B) Frictional unemployment. C) Employed. D) Voluntary unemployment. E) Structural unemployment. Show Answer Correct Answer: E) Structural unemployment. 9. What do we call a measurement, like GDP, that has been adjusted for inflation? A) Current. B) Depreciated. C) Real. D) Equilibrium. E) Nominal. Show Answer Correct Answer: C) Real. 10. What is crowding out? A) An decrease in consumption due to higher interest rates from expansionary fiscal policy. B) A decrease to net exports due to higher interest rates from expansionary fiscal policy. C) A decrease to investment due to higher interest rates from expansionary fiscal policy. D) None of above. Show Answer Correct Answer: C) A decrease to investment due to higher interest rates from expansionary fiscal policy. 11. What are the 3 economic questions? A) Why to produce? Tell who to produce? Things to produce?. B) What to produce? How To Produce? For whom to produce?. C) Who to produce? Why you produce? Like to produce?. D) What to produce? How to produce? When to produce?. Show Answer Correct Answer: B) What to produce? How To Produce? For whom to produce?. 12. In 2019 the GDP of the USA was about? A) 100 billion. B) 20 billion. C) 20 million. D) 20 trillion. Show Answer Correct Answer: D) 20 trillion. 13. Business cycle is discussed in the long run framework of macroeconomics A) False. B) True. Show Answer Correct Answer: A) False. 14. The government begins funding training programs to teach computer repair and website design. Which kind of unemployment would this training help? A) Seasonal unemployment. B) Frictional unemployment. C) Cyclical unemployment. D) Structural unemployment. Show Answer Correct Answer: D) Structural unemployment. 15. The ..... is the basket of typical household goods and services A) Consumer Price Index (CPI). B) Monetary Index. C) Gross Domestic Product (GDP). D) Inflation rate. Show Answer Correct Answer: A) Consumer Price Index (CPI). 16. The central bank regulates the monetary system. A) False. B) True. Show Answer Correct Answer: B) True. 17. True or False:By world standards, the U.S. government controls a relatively large share of the U.S. economy. A) False . B) True. Show Answer Correct Answer: B) True. 18. Sustained increase in the price level in an economy over time. A) Recession. B) Deflation. C) Stagflation. D) Inflation. Show Answer Correct Answer: D) Inflation. 19. Which of the following is a final good? A) Vegetable. B) Milk purchased by a house hold. C) Vegetable purchased. D) Milk. Show Answer Correct Answer: B) Milk purchased by a house hold. 20. Which of the following is NOT associated with Economic Growth? A) Increasing worker productivity. B) New firms popping up. C) Improving air quality across the mainland. D) Increase in quantity of productive resources. Show Answer Correct Answer: C) Improving air quality across the mainland. 21. Which of the following could cause the shift shown in the above Keynesian cross diagram? A) An increase in government spending. B) A increase in (lump-sum) taxes. C) An increase in government transfer payments. D) An increase in autonomous consumption. E) None of the above. Show Answer Correct Answer: B) A increase in (lump-sum) taxes. 22. Money multiplier (m)= A) $\frac{cr+1}{cr-rr}$. B) $\frac{cr+1}{cr-rr}$. C) $\frac{cr+1}{cr\ +rr}$. D) $\frac{rr+1}{cr+rr}$. Show Answer Correct Answer: C) $\frac{cr+1}{cr\ +rr}$. 23. Currencies are traded in the ..... The prices at which currencies trade are known as ..... A) Foreign Exchange Market; Exchange Rates. B) Merchandise Trade Balance; Trade Balance. C) Currency Market; Exchange Rates. D) Currency Exchange Market; Currency Rates. Show Answer Correct Answer: A) Foreign Exchange Market; Exchange Rates. 24. The main factor that differentiates gross national product from net national product is ..... A) Gross investment. B) Net investment. C) Depreciation. D) Net factor income from abroad. Show Answer Correct Answer: D) Net factor income from abroad. 25. An unanticipated increase in aggregate demand will result in all of the following, except: A) Increase in labor wages. B) Rising interest rates. C) Decreased input. D) Increase in output. Show Answer Correct Answer: C) Decreased input. 26. In a recession, the Fed would likely A) Decrease the supply of the money in the economy. B) Increase the supply of money in the economy. Show Answer Correct Answer: B) Increase the supply of money in the economy. 27. How does the government finance budget deficits? A) The Federal Reserve creates new money. B) It issues debt to government agencies; private institutions, and private investors. C) It is primarily financed by foreign investors. D) It does nothing to finance budget deficits. Show Answer Correct Answer: B) It issues debt to government agencies; private institutions, and private investors. 28. The main objective of calculating economic growth is A) See progress in economic conditions. B) Improve the welfare of the people. C) Reducing unemployment. D) Increase inflation. Show Answer Correct Answer: A) See progress in economic conditions. 29. A bilateral trade agreement involves: A) All countries and is overseen by the WTO. B) Only two goods, one from each country. C) Two countries agreeing to reduce trade barriers. D) Two companies agreeing to reduce trade barriers. Show Answer Correct Answer: C) Two countries agreeing to reduce trade barriers. 30. Identify the stock variable. A) Capital Formation. B) Income. C) Savings. D) Wealth. Show Answer Correct Answer: D) Wealth. ← 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