This quiz works best with JavaScript enabled. Home > Finance > Economics > Macroeconomics > Macroeconomics – Quiz 119 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 119 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Ms. H buying a used car, is not included in the GDP calculation because it is ..... A) A non-market transaction. B) A second-hand good. C) An intermediate good. D) An underground economy transaction. Show Answer Correct Answer: B) A second-hand good. 2. Under floating system, the exchange rate: A) Is changed at regular intervals by the central bank. B) Fluctuates in response to changes in the price of gold. C) Fluctuates in response to changing economic conditions. D) Is maintained at a predetermined level by the central bank. Show Answer Correct Answer: C) Fluctuates in response to changing economic conditions. 3. "Changes in government expenditure and taxes which occur automatically without any government action." This statement refers to ..... A) Types of fiscal policy. B) Discretionary fiscal policy. C) Objectives of fiscal policy. D) Automatic fiscal policy. Show Answer Correct Answer: D) Automatic fiscal policy. 4. In December 2017, 15, 000 of US residents were employed and 5, 000 were unemployed. Find the unemployment rate for December 2017. A) 25 %. B) 20 %. C) 75%. D) 33 %. Show Answer Correct Answer: A) 25 %. 5. A(n) ..... is a rule governing policy toward the exchange rate. A) Exchange Rate Regime. B) Fixed Exchange Rate. C) Floating Exchange Rate. D) None of above. Show Answer Correct Answer: A) Exchange Rate Regime. 6. If you live on a fixed income, how will you be affected by inflation. A) You are helped because interest rates rise. B) You are helped because your purchasing power has increased. C) You are hurt because interest rates rise. D) You are hurt because your purchasing power has decreased. Show Answer Correct Answer: D) You are hurt because your purchasing power has decreased. 7. Assume that the economy is in equilibrium. If aggregate demand increases, nominal interest rates and bond prices will most likely change in which of the following ways? A) Nominal Interest Rates | Increase-Bond Prices | Not Change. B) Nominal Interest Rates | Increase-Bond Prices | Increases. C) Nominal Interest Rates | Increase-Bond Prices | Decrease. D) Nominal Interest Rates | Decrease-Bond Prices | Decrease. E) Nominal Interest Rates | Decrease-Bond Prices | Increases. Show Answer Correct Answer: C) Nominal Interest Rates | Increase-Bond Prices | Decrease. 8. Consumer Spending2. Investment (business spending on tools/equipment3. Government spending (NOT transfer payments)4. Net exports ..... exports (x)-Imports (M) A) The Business Cycle. B) Factors of productivity. C) Major Economic Goals for Every Country. D) Four components of GDP. Show Answer Correct Answer: D) Four components of GDP. 9. How will labour unions affect an employer? A) The high-skilled workers are more likely to be represented by a union. B) Products cost more than usual. C) They have to pay more for low-skilled employees. D) They don't affect them at all. Show Answer Correct Answer: C) They have to pay more for low-skilled employees. 10. Why is data important in macroeconomics? A) Data is important in macroeconomics for analyzing and understanding the overall performance of an economy. B) Data is important in macroeconomics, but it is not necessary for understanding the overall performance of an economy. C) Data is only important in microeconomics, not macroeconomics. D) Data is not important in macroeconomics as it is too complex to analyze. Show Answer Correct Answer: A) Data is important in macroeconomics for analyzing and understanding the overall performance of an economy. 11. Most of the part of ..... economics is related with microeconomics. A) Keynesian. B) Pigouvian. C) Marshallian. D) Robbins. Show Answer Correct Answer: C) Marshallian. 12. Which of the following is an example of capital goods A) Bread and butter. B) Cloth. C) Shoes. D) Tractor. Show Answer Correct Answer: D) Tractor. 13. According to John Maynard Keynes, the key to reducing high levels of unemployment was to ..... A) Set long-term employment contracts that eliminate uncertainty. B) Eliminate government intervention in the labor market. C) Increase aggregate demand. D) Create retraining programs so that unemployed workers can acquire new skills as technology changes. E) Offer employees above-equilibrium wages to attract more workers. Show Answer Correct Answer: C) Increase aggregate demand. 14. In the business cycle, what always follows immediately after a contraction? A) Contraction. B) Expansion. C) Peak. D) Trough. Show Answer Correct Answer: D) Trough. 15. Requirement that an owner is personally and fully responsible for all losses and debts of a business; applies to proprietorships, general partnerships A) Cooperative. B) Business organization. C) Corporation. D) Fringe Benefits. E) Unlimited liability. Show Answer Correct Answer: E) Unlimited liability. 16. An economy's GDP measures both the total income earned in the economy and the total expenditure on the economic prosperity A) True. B) False. Show Answer Correct Answer: A) True. 17. The exchange rate between the domestic and a foreign currency is determined by ..... A) The monetary strengths of countries involved. B) The political regime of the countries involved. C) The relative tax rate in those countries. D) The law of supply and demand. Show Answer Correct Answer: D) The law of supply and demand. 18. Are unemployed because employers need their type of human capital during only one part of the year A) Structural. B) Seasonal. C) Cyclical. D) Frictional. Show Answer Correct Answer: B) Seasonal. 19. The use of government spending and revenue collection to influence the economy. A) Monetary Policy. B) Fiscal Policy. C) Executive Policy. D) Congressional Policy. Show Answer Correct Answer: B) Fiscal Policy. 20. Which of the following typically rises during a recession? A) Production. B) Unemployment. C) Stock prices. D) Average income. Show Answer Correct Answer: B) Unemployment. 21. What is the labor-force participation rate? A) The percentage of people in the population who are in the labor force. B) The percentage of people in the labor force who are not employed. C) The percentage of people in the labor force who are employed. D) The percentage of people in the population who are unemployed. Show Answer Correct Answer: A) The percentage of people in the population who are in the labor force. 22. Law of ..... Marginal Utility:The more you consume, the less you enjoy additional consumption. A) Coincidental. B) Inconsequential. C) Diminishing. D) Increasing. Show Answer Correct Answer: C) Diminishing. 23. Which policy would help fight inflation? A) Contractionary. B) Expansionary. Show Answer Correct Answer: A) Contractionary. 24. Consumers reduce spending because they lack confidence in the economy. All else being equal, what effect will this have on the price level and GDP? A) Both prices and real GDP will decline. B) Prices will increase, but real GDP will be unaffected. C) Both prices and real GDP will increase. D) Prices will decrease, but real GDP will be unaffected. Show Answer Correct Answer: A) Both prices and real GDP will decline. 25. If the government increases spending but does not bring in enough tax revenue, this will create a ..... A) Trade deficit. B) Budget deficit. C) Trade surplus. D) Budget surplus. Show Answer Correct Answer: B) Budget deficit. 26. The following are factors that influence overall demand (aggregate demand), except: A) Increase in real income. B) Technological change and productivity. C) Changes in business expectations. D) Changes in the rate of inflation. Show Answer Correct Answer: B) Technological change and productivity. 27. In the U.S., the federal funds rate is the interest rate on ....., and is controlled by the ..... A) Reserves that banks lend to each other; Treasury Department. B) Reserves that banks lend to each other; President and Congress. C) Loans from the Fed to banks; President and Congress. D) Reserves that banks lend to each other; Federal Open Market Committee. E) Loans from the Fed to banks; Federal Open Market Committee. Show Answer Correct Answer: D) Reserves that banks lend to each other; Federal Open Market Committee. 28. Which of the following is direct tax? A) Excise tax. B) Sales tax. C) Import tax. D) Real property tax. Show Answer Correct Answer: D) Real property tax. 29. A central bank regulation employed by most, but not all, of the world's central banks, that sets the minimum amount of reserves that must be held by a commercial bank A) Peak Requirement. B) Supply Requirement. C) Reserve Requirement. D) Recession Requirement. Show Answer Correct Answer: C) Reserve Requirement. 30. Which is NOT a goal promoted by the government through fiscal policy? A) Economic growth. B) Money supply. C) Price stability. D) Full employment. Show Answer Correct Answer: B) Money 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