This quiz works best with JavaScript enabled. Home > Finance > Economics > Macroeconomics > Macroeconomics – Quiz 123 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 123 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What taxes would an individual pay if he were self-employed and the business is not incorporated? A) Self-employment taxes, including Social Security and Medicare taxes. B) Sales taxes. C) Property taxes. D) Income taxes . Show Answer Correct Answer: A) Self-employment taxes, including Social Security and Medicare taxes. 2. To make it more useful, the household must put it in the ..... so that the economy may benefit from it. A) Savings. B) Bank. C) Investment. D) None of above. Show Answer Correct Answer: B) Bank. 3. Define macroeconomic variables. A) Macroeconomic variables are only applicable to developed countries. B) Macroeconomic variables are used to measure the performance of individual firms. C) Macroeconomic variables are limited to measuring inflation and unemployment rates. D) Macroeconomic variables are key indicators that measure the overall performance of an economy. Show Answer Correct Answer: D) Macroeconomic variables are key indicators that measure the overall performance of an economy. 4. Which of the following is a topic studied in Macroeconomics? A) The functioning of individual industries. B) Aggregate behavior of household and industries. C) The behavior of individual households. D) The decision-making of individual business firms. Show Answer Correct Answer: B) Aggregate behavior of household and industries. 5. How do we measure economic growth? A) Increases in the labor force. B) Increases in real GDP. C) Increases in the price level, as indicated by the GDP chain price index. D) Increases in fictional GDP. Show Answer Correct Answer: B) Increases in real GDP. 6. When the Government spends more than it saves A) Budget Surplus. B) GDP. C) Budget. D) Budget Deficit. Show Answer Correct Answer: D) Budget Deficit. 7. Type of unemployment that occurs when workers skills do not match those needed for the jobs available. A) Cyclical Unemployment. B) Structural Unemployment. C) Seasonal Unemployment. D) Frictional Unemployment. Show Answer Correct Answer: B) Structural Unemployment. 8. Mary Ann runs a car dealership selling only government produced cars. At the end of the month Mary Ann must give all of the money she made back to the government. A) Traditional. B) Free Market. C) Mixed. D) Command. Show Answer Correct Answer: D) Command. 9. A government institutes new measures in an attempt to limit inflation. To what macroeconomic goal is this action most directly related? A) Efficiency. B) Stable prices. C) Equity. D) Full employment. Show Answer Correct Answer: B) Stable prices. 10. In order to reduce the amount of money in the economy, what kind of interest rate should the central bank set? A) Make the interest rate lower. B) Make the interest rate higher. C) Make the interest rate fixed. D) All wrong. Show Answer Correct Answer: B) Make the interest rate higher. 11. Suppose your college institutes a new policy requiring you to pay for a permit to park your car in a campus parking lot. A) The cost of the parking permit is NOT part of the OC of attending college if you would not have to pay for parking otherwise. B) Only half the cost of the parking permit is part of the OC of attending college. C) The cost of the parking permit is NOT part of the OC of attending college under any circumstances. D) The cost of the parking permit is part of the OC of attending college if you would not have to pay for parking otherwise. Show Answer Correct Answer: D) The cost of the parking permit is part of the OC of attending college if you would not have to pay for parking otherwise. 12. Which policy measure is an example of monetary policy designed to reduce total (aggregate) demand? A) A reduction in interest rates. B) A switch in government spending from consumer to capital goods. C) A limit placed on bank lending. D) A rise in income tax. Show Answer Correct Answer: C) A limit placed on bank lending. 13. What is vital to consider when evaluating the effects of an expansionary fiscal policy? A) The current interest rate. B) The number of imports and exports. C) The amount of spare capacity in the economy. D) The current unemployment rate. Show Answer Correct Answer: C) The amount of spare capacity in the economy. 14. Lowering the reserve requirement (amount of capital a bank must have on hand) is an example of ..... policy. A) Monetary. B) Fiscal. Show Answer Correct Answer: A) Monetary. 15. What happens to the money circulation, when the FED orders a tight money policy? A) More money is put out into circulation. B) Circulation stays the same. C) Less money is put into circulation. D) Interest rates rise. Show Answer Correct Answer: C) Less money is put into circulation. 16. What shift in the ADAS model relates to the shifting of a country's entire production possibilities curve to the right? A) AD curve shifts to the Right. B) SRAS curve shifts to the right. C) SRAS and LRAS curve shift to the right. D) SRAS and LRAS curve shift to the left. Show Answer Correct Answer: C) SRAS and LRAS curve shift to the right. 17. Macroeconomics is concerned with inflation or deflation, output growth and unemployment. A) TRUE. B) FALSE. Show Answer Correct Answer: A) TRUE. 18. Implicit costs are input costs that do not require an outlay of money by the firm A) False. B) True. Show Answer Correct Answer: A) False. 19. Which hypothesis states that consumption is a function of life time expected income? A) Relative income hypothesis. B) Permament income hypothesis. C) Life cycle hypothesis. D) Absolute income hypothesis. Show Answer Correct Answer: C) Life cycle hypothesis. 20. Which is included in the measure of GDP? A) Spending on meals by consumers at restaurants. B) Spending on used clothing by consumers at garage sales. C) The monetary value of stocks and bonds owned by investors. D) The monetary value of used trucks purchased by construction companies. Show Answer Correct Answer: A) Spending on meals by consumers at restaurants. 21. Someone that creates goods or services and sells them to others A) Produce. B) Producer. C) Seller. D) Consumer. Show Answer Correct Answer: B) Producer. 22. ..... is the branch of economies that studies the individual decision making such as households, firms and government. A) Microplan economics. B) Masterconomics. C) Microeconomics. D) Macroeconomics. Show Answer Correct Answer: C) Microeconomics. 23. Why is falling prices (deflation) considered bad for the economy? A) It discourages people from spending and can lead to a decrease in GDP and increase in unemployment. B) It increases the purchasing power of money and leads to higher inflation. C) It decreases the cost of production and leads to higher interest rates. D) It increases the demand for goods and services and leads to higher taxes. Show Answer Correct Answer: A) It discourages people from spending and can lead to a decrease in GDP and increase in unemployment. 24. The quantity of goods demanded and supplied are the same, A) Law of Supply. B) Law of Demand. C) Supply and demand. D) Market price. Show Answer Correct Answer: D) Market price. 25. Gross domestic product after adjustments for inflation is known as A) GDP Per Capita. B) Real GDP. C) National GDP. D) Current GDP. Show Answer Correct Answer: B) Real GDP. 26. True or False:State and local government spending has not risen much in recent decades. A) False . B) True. Show Answer Correct Answer: A) False . 27. ..... GDP uses current prices to value the economy's production of goods and services A) Real. B) Nominal. Show Answer Correct Answer: B) Nominal. 28. Revenue means this: A) Bankruptcy. B) Income. C) Taxes. D) Credit. Show Answer Correct Answer: B) Income. 29. Which of these groups are most vulnerable to poverty A) Elderly. B) College Students. C) Children. D) Minorities. Show Answer Correct Answer: C) Children. 30. The buying and selling of government securities in order to alter the supply of money. A) Expansion. B) Discount Rate. C) Trough. D) Open Market Operations. Show Answer Correct Answer: D) Open Market Operations. ← 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