This quiz works best with JavaScript enabled. Home > Finance > Economics > Macroeconomics > Macroeconomics – Quiz 114 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 114 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What does jurisdiction mean? A) The offical power to make legal decisions. B) The right to have justice. C) The power to control everyone in the court. D) None of the above. Show Answer Correct Answer: A) The offical power to make legal decisions. 2. True or False-If deflation is occurring, people may not buy products because they believe prices may fall even further A) False. B) True. Show Answer Correct Answer: B) True. 3. Will the following scenario affect the current account or capital account, and will the transaction be a debit or credit? The U.S. increase imports of tractor wheels from Canada. A) Capital account; debit. B) Capital account; credit. C) Current account; credit. D) Current account; debit. Show Answer Correct Answer: D) Current account; debit. 4. Recession is a period where..... A) Income increases. B) Increase in prices. C) Reduction in prices. D) Income decreases. Show Answer Correct Answer: D) Income decreases. 5. Rules or laws affecting commerce A) Complements. B) Subsidies. C) Regulations. D) Substitutes. E) Costs. Show Answer Correct Answer: C) Regulations. 6. ..... is government debt held by individuals and institutions outside the government. A) Government Debt. B) Public Debt. C) Debt-GDP Ratio. D) Fiscal Year. Show Answer Correct Answer: B) Public Debt. 7. Main features of Inflation are except: A) Prices rise continuously over long period of time. B) Prices rise at a faster rate. C) Rise in prices is same for all goods and services. D) Rise in prices is not same for all goods and services. Show Answer Correct Answer: C) Rise in prices is same for all goods and services. 8. The process of negotiations between businesses and their organized employees. A) Union shop. B) Collective bargaining. C) Binding arbitration. D) Labor laws. Show Answer Correct Answer: B) Collective bargaining. 9. A gradual, steady increase in prices combined with unemployment and low consumer demand A) Influence. B) Inflation. C) Consumer price index. D) Stagflation. Show Answer Correct Answer: D) Stagflation. 10. The functions of the central bank are as follows, except: A) Controller for money circulation. B) Money market regulator. C) Bank for the government. D) Banks for the private sector. Show Answer Correct Answer: D) Banks for the private sector. 11. If the economy is in a recession, the economy will adjust to long-run equilibrium on its own as wages and price expectations rise A) True. B) False. Show Answer Correct Answer: B) False. 12. Consumption of all goods and services in the economy during the period of an accounting year is known as: A) Aggregate demand. B) Aggregate supply. C) Aggregate consumption. D) None of these. Show Answer Correct Answer: C) Aggregate consumption. 13. What is the method of calculating the countries GDP? A) The Value of the Dollar Model. B) The Output Expenditure Model. C) The American Way. D) The Input Expediture Model. Show Answer Correct Answer: B) The Output Expenditure Model. 14. If the government's fiscal policy involves stopping high inflation, which choices should Congress consider? A) Either increase taxes or cut government spending. B) Either lower the discount rate or sell bonds. C) Either raise the discount rate or buy bonds. D) Either cut taxes or increase government spending. Show Answer Correct Answer: A) Either increase taxes or cut government spending. 15. Problems with the CPI A) Substitution bias. B) New products. C) Product quality. D) All of these are correct. Show Answer Correct Answer: D) All of these are correct. 16. Which role does money have in economic systems? A) A resource for production. B) A medium of exchange. C) A good to consume. D) A measure of satisfaction. Show Answer Correct Answer: B) A medium of exchange. 17. Which of the following best describes the Consumer Price Index (CPI) for Australia? A) It is an index that measures the price changes of exports against imports for the year. B) It is an index of the average annual change in the price of a basket of goods and services representing a high proportion of expenditure by metropolitan households. C) It is an index that measures actual changes in all prices of goods and services produced in Australia during the years. D) It is an index that measures the average rate of change in the prices of a basket of consumer and producer goods and services during the year. Show Answer Correct Answer: B) It is an index of the average annual change in the price of a basket of goods and services representing a high proportion of expenditure by metropolitan households. 18. An increase in which of the following will lead to lower inflation and lower unemployment? A) Exports. B) Aggregate demand. C) Labor productivity. D) Government spending. E) International value of domestic currency. Show Answer Correct Answer: B) Aggregate demand. 19. How much is MPS in an economy when MPC is.8? A) .2. B) 3. C) 1.6. D) .8. Show Answer Correct Answer: A) .2. 20. If Real GDP is $ 300 million and the population is 10 million, what is the Real GDP per capita? A) $ 5. B) $ 3, 000. C) $ 30. D) $ 300. Show Answer Correct Answer: C) $ 30. 21. Airlines in the US are part of what market structure? A) Oligopoly. B) Monopolistic Competition. C) Perfect Competition. D) Monopoly. Show Answer Correct Answer: A) Oligopoly. 22. What does X represent in calculating net imports? X-M A) Imports. B) Exports. C) Expenditures. D) None of the Above. Show Answer Correct Answer: B) Exports. 23. If the government increases spending or lowers taxes, it is implementing a(n) ..... policy A) Expansionary monetary. B) Contractionary fiscal. C) Contractionary monetary. D) Expansionary fiscal. Show Answer Correct Answer: D) Expansionary fiscal. 24. This is just a savings account with a slightly higher interest rate because the saver commits to a longer saving period for a set amount deposited. A) C.D. B) Debt. C) Beneficiary. D) None of above. Show Answer Correct Answer: A) C.D. 25. Which of the following statements is FALSE about economic growth? A) Economic growth can help in using tidal power. B) Economic growth solves the economic problem. C) Economic growth can help in having new technology. D) Economic growth can help in expansion of education. Show Answer Correct Answer: A) Economic growth can help in using tidal power. 26. The following is the goal of macroeconomics EXCEPT: A) Economic growth. B) Equitable distribution of income. C) Control the Union Labor. D) Achieve full employment. Show Answer Correct Answer: C) Control the Union Labor. 27. The expenditure approach method is commonly used by developed countries. Namely by calculating 4 economic units, including: A) Household consumption expenditure. B) Government spending. C) Investment. D) Expose grandson. E) All true. Show Answer Correct Answer: E) All true. 28. When calculating GDP, which of the following gets subtracted out? A) Imports. B) Business investment spending. C) Consumer spending. D) Government spending. Show Answer Correct Answer: A) Imports. 29. Bart is able to buy 50 water balloons with the $ 5 bill he received for his allowance. This is an example of money as A) A medium of exchange. B) An investment. C) Fiat money. D) A store of value. Show Answer Correct Answer: A) A medium of exchange. 30. Holistic and psychology based approach to measure social welfare is ..... A) GNHI. B) HDI. C) SPI. D) GDP. Show Answer Correct Answer: A) GNHI. ← 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