This quiz works best with JavaScript enabled. Home > Finance > Economics > Macroeconomics > Macroeconomics – Quiz 116 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 116 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What are the subtopics covered in chapter 1 and 2 of Mankiw's macroeconomics? A) Refer to the book for the specific subtopics covered in chapter 1 and 2 of Mankiw's macroeconomics. B) International trade and exchange rates. C) Fiscal policy and monetary policy. D) Aggregate demand and aggregate supply. Show Answer Correct Answer: A) Refer to the book for the specific subtopics covered in chapter 1 and 2 of Mankiw's macroeconomics. 2. Small or weak industries can be made more competitive by the government giving them a ..... to help offset their costs. A) Subsidy. B) Tariff. C) Embargo. D) Quota. Show Answer Correct Answer: A) Subsidy. 3. Which of the following is the best definition of a household's total saving? A) An injection into the circular flow of income. B) Contributions to a pension fund for retirement. C) Money placed in bank and building society accounts. D) That part of disposable income not spent on consumption. Show Answer Correct Answer: D) That part of disposable income not spent on consumption. 4. "Government has implemented GST" . That refers to A) Normative Macroeconomics. B) Positive Macroeconomics. Show Answer Correct Answer: B) Positive Macroeconomics. 5. Are discouraged workers included in the unemployment rate? A) Yes. B) No. Show Answer Correct Answer: B) No. 6. What 2 types of inflation are there? A) Demand pull and cost push. B) Demand pull and supply glut. C) Supply glut and demand side. D) Supply inflation and demand inflation. Show Answer Correct Answer: A) Demand pull and cost push. 7. If the Consumer Price Index was 170 in one year and 180 in the next year, then the rate of inflation is approximately: A) 6.3 percent. B) 5.5 percent. C) 7.2 percent. D) 5.9 percent. Show Answer Correct Answer: D) 5.9 percent. 8. Which of the following is NOT a Phase? A) Peak. B) Expansion. C) Contraction. D) Trough. E) Neutral. Show Answer Correct Answer: E) Neutral. 9. The opportunity cost of an item is A) The number of hours needed to earn money to buy the item. B) What you give up to get that item. C) Usually less than a dollar value of the item. D) The dollar value of the item. E) The sunk cost of an item. Show Answer Correct Answer: B) What you give up to get that item. 10. Most important job of the FED A) Controlling Inflation. B) Controlling Stock Prices. C) Controlling Monetary Policy. D) Controlling Deflation. Show Answer Correct Answer: C) Controlling Monetary Policy. 11. Is it possible for a nation to run budget deficits and still have its debt/GDP ratio fall? A) Not sure. B) Yes . C) Maybe. D) No. Show Answer Correct Answer: B) Yes . 12. The federal minimum wage increases by $ 1 today. What happens to the supply of hamburgers today? A) Increase in Supply. B) Decrease in Supply. C) No change in supply. D) None of above. Show Answer Correct Answer: B) Decrease in Supply. 13. Percentage rate of increase in the price index per period. A) Rate. B) Deflator. C) Inflation rate. D) Real GDP. Show Answer Correct Answer: C) Inflation rate. 14. The method of measuring national income through Gross National Income or GNI is called: A) Gross Income Accounting. B) National Government Accounting. C) National Treasury Accounting. D) National Income Accounting. Show Answer Correct Answer: D) National Income Accounting. 15. Define inflation tax! A) Deflation. B) An increase in the value of money held by the public. C) A reduction in the value of money held by the public caused by inflation. D) The disinflation of deflation. Show Answer Correct Answer: C) A reduction in the value of money held by the public caused by inflation. 16. Which of these is an economic indicator used to tell how an economy is doing? A) Equilibrium price. B) Consumer price index. Show Answer Correct Answer: B) Consumer price index. 17. Rather than implementing a tax liability based on the individual or entity's ability to pay, the government assesses tax as a percentage of the asset that the taxpayer purchases or owns. A) Proportional. B) Regressive. C) Progressive. D) Flat. Show Answer Correct Answer: B) Regressive. 18. Sum of consumer spending, investment spending, government spending, and net exports A) GDP. B) Real GDP. C) Capital gains. D) None of above. Show Answer Correct Answer: A) GDP. 19. The economy's aggregate price index, equal to the ratio of nominal GDP to real GDP. A) GNP Deflator. B) GDP. C) GDP deflator. D) Deflator. Show Answer Correct Answer: C) GDP deflator. 20. The biggest factor in income inequality is A) Wealth and Education. B) Where they live. C) Family history. D) None of above. Show Answer Correct Answer: A) Wealth and Education. 21. It is the value of all final goods and services produced within the boundaries of the Philippines, whether by foreign or Filipinos A) GNI. B) GDP. C) GNP. D) NIA. Show Answer Correct Answer: B) GDP. 22. Which of the following situation refers to HYPERINFLATION? A) Price increases in a controlled way and is less than 10% per annum whereas it's not a serious economic problem. B) Prices increases at a very high rate (1000% per ammum) and paper money almost becomes worthless. C) The spending power and value of money decreases continuously & it is not caused by the rise in prices but demand blockade & government involvement. D) None of above. Show Answer Correct Answer: B) Prices increases at a very high rate (1000% per ammum) and paper money almost becomes worthless. 23. Full employment GDP is ..... A) Output where the Natural Rate of Unemployment is achieved. B) Output without cyclical unemployment. C) Output where there is non-accelerating inflation. D) All of the above. Show Answer Correct Answer: D) All of the above. 24. If you saw that a restaurant was selling a hamburger for $ 50, you would know there must be something special about that hamburger because that's an unusual price for a hamburger. This statement describes which function of money? A) Store of value. B) Measure of inflation. C) Medium of exchange. D) Unit of account. Show Answer Correct Answer: D) Unit of account. 25. TRUE or FALSE:The maintenance cost approach assigns a monetary value to an environmental service equal to the damage done when that service is unavailable. A) FALSE. B) TRUE. Show Answer Correct Answer: A) FALSE. 26. A tax that takes a larger percentage of income from low-income groups than from high-income groups is a ..... A) Proportional Tax. B) Regressive Tax. C) Progressive Tax. D) Property Tax. Show Answer Correct Answer: B) Regressive Tax. 27. Which of the following BEST illustrates the focus of monetary policy? A) Paying down the US national debt. B) Increasing consumer demand and spending. C) Increasing consumer savings and investment. D) Controlling inflation and encouraging economic growth. Show Answer Correct Answer: D) Controlling inflation and encouraging economic growth. 28. This happens when sectors desire to buy products and services more than the available supply in the market A) Cost-push. B) Demand-pull. Show Answer Correct Answer: B) Demand-pull. 29. The government utilizes a contractionary fiscal policy to A) Grow the economy. B) Deal with inflationary pressures. C) Increase employment. D) None of above. Show Answer Correct Answer: B) Deal with inflationary pressures. 30. This refers to the purchase of goods and services by individuals or households. A) Consumption. B) Export. C) Import. D) Investment. Show Answer Correct Answer: A) Consumption. ← 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