This quiz works best with JavaScript enabled. Home > Finance > Economics > Macroeconomics > Macroeconomics – Quiz 121 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 121 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. It is the measure of national output that adjusts GNP to account for price changes. A) Actual GNP. B) Potential GNP. C) Nominal GNP. D) Real GNP. Show Answer Correct Answer: D) Real GNP. 2. The total value of all final goods and services produced in a country in a given year. A) Inflation. B) Consumer Price Index. C) Gross Domestic Product. D) Unemployment. Show Answer Correct Answer: C) Gross Domestic Product. 3. Aggregate demand A) Demand that is aggregated. B) Total demand for goods and services in a market. C) Demand for goods and services. D) None of above. Show Answer Correct Answer: B) Total demand for goods and services in a market. 4. A government decided to increase its spending on building schools and hospitals. Which aim of government policy is most likely to be achieved by this increase? A) Economic growth. B) A balance of payments surplus. C) A stronger exchange rate. D) Price stability. Show Answer Correct Answer: A) Economic growth. 5. Aggregate supply is generally influenced by:I. Increase in input supplyII. Technology and productivity improvements III. Changes in the institutional field A) I and II only. B) I and III only. C) II and III only. D) I, II and III. Show Answer Correct Answer: D) I, II and III. 6. In the circular flow model, which of the following flows in the opposite direction from the flow of factors of production? A) Finished goods and services. B) Wages, rent, interest, and profit. C) Transfer payments from government. D) Firm's profit incentives. Show Answer Correct Answer: B) Wages, rent, interest, and profit. 7. What should the "normal" or "acceptable" inflation rate be? A) 2-4%. B) 1-2%. C) 3-5%. D) 7-9%. Show Answer Correct Answer: B) 1-2%. 8. A tax on the sale or production of a domestic good is called a(n) ..... A) Import Tax. B) Estate Tax. C) Excise Tax. D) "Sin" Tax. Show Answer Correct Answer: C) Excise Tax. 9. What is the role of science in macroeconomics? A) Science in macroeconomics provides a systematic and empirical approach to studying and understanding the behavior of the economy as a whole. B) Science in macroeconomics only focuses on individual economic agents and not the entire economy. C) Science in macroeconomics relies solely on theoretical models and does not use empirical data. D) Science in macroeconomics has no role in understanding the behavior of the economy as a whole. Show Answer Correct Answer: A) Science in macroeconomics provides a systematic and empirical approach to studying and understanding the behavior of the economy as a whole. 10. Oversees the entire banking system, 7 members appointed by the president and approved by the Senate; serve 14 year terms A) Open market committee. B) Federal Reserve. C) Board of Governors. D) FDIC. Show Answer Correct Answer: C) Board of Governors. 11. Raul serves in the military as a marine. How would he be categorized by the BLS? A) Not in the Labor Force. B) Unemployed. C) Underemployed. D) Employed. Show Answer Correct Answer: A) Not in the Labor Force. 12. Studies on national income. A) Microeconomics. B) Macroeconomics. Show Answer Correct Answer: B) Macroeconomics. 13. Two local business owners want to reduce competition, so they decide to form one organization from the two companies. This is an example of a A) Monopoly. B) Trading bloc. C) Hostile takeover. D) Merger. Show Answer Correct Answer: D) Merger. 14. Jack signs a rental agreement to pay $ 1, 500 a month for an apartment for three years. A) Harmed from unanticipated inflation. B) Benefits from unanticipated inflation. Show Answer Correct Answer: B) Benefits from unanticipated inflation. 15. When the economy experiences an expansion, it is most likely the case that A) GDP is increasing, unemployment is increasing, and inflation is decreasing. B) GDP is decreasing, unemployment is decreasing, and inflation is increasing. C) GDP is increasing, unemployment is decreasing, and inflation is increasing. D) GDP is decreasing, unemployment is decreasing, and inflation is decreasing. Show Answer Correct Answer: C) GDP is increasing, unemployment is decreasing, and inflation is increasing. 16. James, William, and Mason are discussing about different types of economics. James is curious to know, what is the study of large-scale economies called? A) Microeconomics. B) Macroeconomics. C) Command economy. D) Market economy. Show Answer Correct Answer: B) Macroeconomics. 17. Increase in exchange rate will causes: A) Export price relatively expensive. B) BP curve shift to the right. C) IS curve shift to the right. D) BP curve shift to the left. Show Answer Correct Answer: B) BP curve shift to the right. 18. A second-hand car dealer buys a car for $ 10, 000. Overhauls the car for $ 5, 000 with a new paint work. He adds a profit of $ 500 on top and sells it for $ 15, 500. Which part of this transaction can GDP include if at all A) GDP does not include any part of the above transactions. B) GDP captures the value added by the dealer $ 5, 500 (including dealer's profit). C) GDP captures the value added by the dealer $ 5, 000 (excluding dealer's profit). D) GDP captures the value of all the transactions $ 15, 500. Show Answer Correct Answer: B) GDP captures the value added by the dealer $ 5, 500 (including dealer's profit). 19. Which government policy measure would be most likely to reduce unemployment? A) A decrease in government expenditure. B) An increase in income tax. C) An increase in interest rate. D) A decrease in VAT. Show Answer Correct Answer: D) A decrease in VAT. 20. An organization of workers who collectively seek to improve wages, working conditions, benefits, job security, and other work-related matters A) Labor Strike. B) Union Labor. C) Union Strike. D) Labor Union. Show Answer Correct Answer: D) Labor Union. 21. As a consequence of a severe global recession, an economy has experienced a demand-side shock and is now growing below its trend rate. All other things being equal, which of the following combinations is most likely to exist in this economy. A) Falling rate of unemployment and increasing rate of inflation. B) Falling rate of unemployment and falling rate of inflation. C) Increasing rate of unemployment and falling rate of inflation. D) Increasing rate of unemployment and increasing rate of inflation. Show Answer Correct Answer: C) Increasing rate of unemployment and falling rate of inflation. 22. Which of the following transactions would be included in the computation of gross domestic product? A) Josh buys a new pair of running shoes. B) Nancy offers to babysit her granddaughter. C) Katie buys her dad's used car. D) Eli cannot go to a concert so he resells his ticket to a friend. E) Molly rakes the leaves in her own yard. Show Answer Correct Answer: A) Josh buys a new pair of running shoes. 23. Corn/TV Sets A 0/6 B 12/5 C 22/4 D 30/3 E 36/2 F 40/1 G 42/0 The OC of producing the first TV set is A) 40 units of corn. B) 2 units of corn. C) 42 units of corn. D) 12 units of corn. Show Answer Correct Answer: B) 2 units of corn. 24. 5 main factors that shift the supply curve A) MERIT:Market Size (# of consumers), Expectations, Related Prices (complements and substitutes), Income (normal and inferior goods), Tastes. B) TRICE-Technology (can both increase or decrease the curve), Related Prices (substitutes/compliments), Input prices, Competition, Expectations. C) A model that shows the flow of goods and services and the interaction among households, businesses, and banks. D) None of above. Show Answer Correct Answer: B) TRICE-Technology (can both increase or decrease the curve), Related Prices (substitutes/compliments), Input prices, Competition, Expectations. 25. The equilibrium level of national income in a closed economy is where A) Aggregate expenditure equal National Income. B) MPC = APC. C) Unemployment rate is about 3 percent of labour force. D) Consumption equals savings. Show Answer Correct Answer: A) Aggregate expenditure equal National Income. 26. Imagine a country where the economic system has both market-based elements and some level of government involvement. What would you call this type of economy? A) Market Economy. B) Mixed Economy. C) Traditional Economy. D) Command Economy. Show Answer Correct Answer: B) Mixed Economy. 27. A high minimum wage can cause structural unemployment. A) False. B) True. Show Answer Correct Answer: B) True. 28. If resource prices fall, what curve on the AD/AS model shifts and in what direction A) AD Shift right in the Long Run. B) LRAS shifts right in the long run. C) SRAS shifts left in the short run. D) AD shifts left in the Short Run. E) SRAS shifts right in the short run. Show Answer Correct Answer: E) SRAS shifts right in the short run. 29. What is the purpose of valuing goods and services at market prices in GDP computation? A) To reflect how much people are willing to pay for a good or service. B) To avoid double counting of intermediate goods. C) To account for changes in quantities produced. D) To estimate the value of imputed goods and services. Show Answer Correct Answer: A) To reflect how much people are willing to pay for a good or service. 30. Macroeconomics is the study of economy wide phenomena including inflation, unemployment, and economic growth. A) False. B) True. Show Answer Correct Answer: B) True. ← 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