This quiz works best with JavaScript enabled. Home > Finance > Economics > Macroeconomics > Macroeconomics – Quiz 124 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 124 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. All of the following are types of unemployment but ..... A) Seasonal. B) Frictional. C) Cyclical. D) Structural. E) Full. Show Answer Correct Answer: E) Full. 2. Where does the largest share of federal tax revenue come from? A) Individual income taxes. B) Property taxes. C) Corporate taxes. D) General sales taxes. Show Answer Correct Answer: A) Individual income taxes. 3. Which factor MOST directly affects the amount of money borrowers must repay to lenders? A) The interest rate. B) The employment rate. C) The currency exchange rate. D) The inflation rate. Show Answer Correct Answer: A) The interest rate. 4. Ned is a typewriter repairman. As typewriters are being replaced by computers Ned finds less and less work. What kind of unemployment is Ned experiencing? A) Seasonal unemployment. B) Cyclical unemployment. C) Frictional unemployment. D) Structural unemployment. Show Answer Correct Answer: D) Structural unemployment. 5. A little inflation is normal and even good for a healthy economy. Inflation becomes a problem when it grows too quickly. A) True. B) False. Show Answer Correct Answer: A) True. 6. The most commonly used measure of a country's national income is ..... A) Real GDP. B) GDP. C) CPI. D) GNP. Show Answer Correct Answer: B) GDP. 7. Suppose, the reserve ratio is equal $rr=5%$ A) 20. B) 25. C) 105%. D) 10. Show Answer Correct Answer: A) 20. 8. Where did the idea of the circular flow of goods and services came from? A) Plato. B) Francois Quesnay. C) Bill Gates. D) None of above. Show Answer Correct Answer: B) Francois Quesnay. 9. Stagflation is what? A) Laws that reduce inflation and decrease GDP. B) Output is high and unemployment is less than the natural rate of unemployment. C) A gap with higher prices and a decrease in GDP. D) Laws that reduce unemployment and increase GDP. Show Answer Correct Answer: C) A gap with higher prices and a decrease in GDP. 10. Which of the following is true about bonds? A) Bond prices remain fixed over time. B) Bonds have unlimited profit potential. C) Bonds are generally riskier than stocks. D) Bondholders receive interest payments. E) Bondholders become part owners of the company that issued the bonds. Show Answer Correct Answer: D) Bondholders receive interest payments. 11. Government ensures the stability and economic growth of a country by the following except A) Adjusting the allocation of resources to alter the composition of the domestic output. B) Controlling unemployment and inflation, which are caused by business fluctuations. C) Encouraging the power of monopoly firms. D) Redistributing income and wealth among the population. Show Answer Correct Answer: C) Encouraging the power of monopoly firms. 12. 2 sector model showing how businesses & households interact A) Circular Flow Diagram. B) Demand Curve. C) Supply Curve. D) Price Controls. Show Answer Correct Answer: A) Circular Flow Diagram. 13. Which of the following is not a determinant of aggregate demand? A) Change in Political Parties. B) Change in Government Spending. C) Change in Consumer Spending. D) Change in investment Spending. Show Answer Correct Answer: A) Change in Political Parties. 14. Grants to support R&D affect on steady state level and steady state growth of total output per person A) Increases s.s level, s.s growth rate increases. B) Decreases s.s level, s.s growth rate unchanged. C) Increases s.s level, s.s growth rate unchanged. D) Increases s.s level, s.s growth rate decreases. Show Answer Correct Answer: A) Increases s.s level, s.s growth rate increases. 15. Exogenous variables are determined A) Outside the model. B) In the model. Show Answer Correct Answer: A) Outside the model. 16. Which one of the following would most likely be considered a defensive expenditure? A) New energy efficient windows for a house. B) A new fuel efficient automobile. C) The cost of cleaning up an oil spill. D) Taxes paid to expand a highway system. E) The cost of a university education. Show Answer Correct Answer: C) The cost of cleaning up an oil spill. 17. Which of the following is the best measurement of a country's living standard? A) Nominal GDP. B) Real GDP per capita. C) GDP per capita. D) Real GDP. Show Answer Correct Answer: B) Real GDP per capita. 18. Refers to an overall increase in the Consumer Price Index A) Demand. B) Supply. C) Recession. D) Inflation Rate. Show Answer Correct Answer: D) Inflation Rate. 19. What is competitive advantage? A) Conditions that allow a company to make stuff at equal price or a lower price. B) When a company can make stuff faster than other companies. C) A government tax. D) The same thing as GDP. Show Answer Correct Answer: A) Conditions that allow a company to make stuff at equal price or a lower price. 20. Macroeconomics studies what? A) Science that studies trading activities in general. B) The science that studies the economy as a whole. C) Knowledge that studies individual attitudes in making a decision. D) A science that studies the opposite of microeconomics. Show Answer Correct Answer: B) The science that studies the economy as a whole. 21. The way in which a family plans for a vacation to Disney World A) Macroeconomics. B) Microeconomic. Show Answer Correct Answer: B) Microeconomic. 22. The short-run aggregate supply curve shifts in response to a change in: A) Consumption. B) Government purchases. C) Overall costs of production. D) All of the above. Show Answer Correct Answer: C) Overall costs of production. 23. A recession is..... A) A short term downfall of economic activity. B) A long term downfall of economic activity. C) A general increase in economic activity. D) None of above. Show Answer Correct Answer: A) A short term downfall of economic activity. 24. Economic agent is the individuals, groups or organizations that carry out economic activity and that take economic decisions. A) FALSE. B) TRUE. Show Answer Correct Answer: B) TRUE. 25. A central bank's changing of the money supply to influence interest rates and assist the economy in achieving price level stability, full-employment, and economic growth is known as what? A) Fiscal policy. B) Tax policy. C) Treasury policy. D) Monetary policy. Show Answer Correct Answer: D) Monetary policy. 26. Which of the following is not an example of infrastructure? A) Power Lines. B) Suburbs. C) Roads. D) Information Networks. Show Answer Correct Answer: B) Suburbs. 27. Which one of the following is an intermediate product? A) Purchases of pulses by consumers. B) Wheat purchased by a flour mill. C) Wheat used by households. D) Machine purchased by a firm. Show Answer Correct Answer: B) Wheat purchased by a flour mill. 28. The most common number used to measure economic growth is A) Gross Domestic Product. B) Production Possibilities Curve. C) Unemployment Rate. D) Consumer Price Index. Show Answer Correct Answer: A) Gross Domestic Product. 29. Economic Activity Achievement Monitoring Tools, except..... A) National Income (GNP). B) The rate of change in prices. C) Labor utilization and unemployment. D) Currency. E) Trade balance and balance of payments. Show Answer Correct Answer: D) Currency. 30. Accepting deposits from individuals and firms and providing loans to the public are the basic function of ..... A) Central bank. B) Insurance Companies. C) Commercial bank. D) Merchant bank. Show Answer Correct Answer: C) Commercial bank. ← 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