This quiz works best with JavaScript enabled. Home > Finance > Economics > Macroeconomics > Macroeconomics – Quiz 126 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 126 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The most likely economic situation in which a government would implement contractionary fiscal policy is ..... A) High unemployment. B) High inflation. C) Government budget surpluses. D) Low unemployment. E) Government budget deficits. Show Answer Correct Answer: B) High inflation. 2. Eurostat bases its unemployment statistics on what population? A) All civilians over age 16. B) All civilians over age 21. C) All civilian, non-institutionalized people over age 15. D) All civilian, non-institutionalized people over age 21. E) All civilian, non-institutionalized, non-self-employed people over age 21. Show Answer Correct Answer: C) All civilian, non-institutionalized people over age 15. 3. Picture a gas station next to a highway. It is the only gas station for 50 miles. How might this affect prices? A) Their prices may be higher, because people with cars that need gas don't have much of a choice. B) Their prices will be low, because people don't have many choices. Show Answer Correct Answer: A) Their prices may be higher, because people with cars that need gas don't have much of a choice. 4. The general increase in the price of goods and services A) Gross Domestic Product. B) Inflation. C) Retention. D) Unemployment. Show Answer Correct Answer: B) Inflation. 5. Gross National Happiness Index is developed in ..... A) India. B) Bhutan. C) Nepal. D) Oman. Show Answer Correct Answer: B) Bhutan. 6. Which of the following is true if the production possibilities curve is a curved line concave to the origin? A) Resources are perfectly substitutable between the production of the two goods. B) It is possible to produce more of both products. C) Both products are equally capable of satisfying consumer wants. D) As more of one good is produced, more and more of the other good must be given up. Show Answer Correct Answer: D) As more of one good is produced, more and more of the other good must be given up. 7. The ....., or ....., is the difference between a country's exports and imports of goods. A) Merchandise Trade Balance; Trade Balance. B) Balance of Payments Accounts; Payment Balance. C) Balance of Payments on the Current Account; Current Account. D) Balance of Payments on the Financial Account; Financial Account. Show Answer Correct Answer: A) Merchandise Trade Balance; Trade Balance. 8. The Communist Manifesto 2. Das Kapital3. Identified Class struggle 4. Capitalism to Socialism to Communism A) Milton Friedman. B) Friedrich Hayek. C) Karl Marx. D) John Maynard Keynes. Show Answer Correct Answer: C) Karl Marx. 9. Increase in interest rate will causes: A) Increase in exchange rate. B) Increase in export. C) Capital outflows. D) Capital inflows. Show Answer Correct Answer: D) Capital inflows. 10. When income is $ 200 consumption is $ 140, and when income is $ 250 consumption is $ 180. The marginal propensity to save is A) 0.20. B) 0.25. C) 0.75. D) 0.80. Show Answer Correct Answer: A) 0.20. 11. An increase in the demand for money, with no change in the supply of money, will lead to ..... in the equilibrium quantity of money and ..... in the equilibrium interest rate. A) No change; a decrease. B) A decrease; an increase. C) No change; an increase. D) An increase; a decrease. E) An increase; an increase. Show Answer Correct Answer: C) No change; an increase. 12. A condition of economics that results from both limited resources and unlimited wants. A) Microeconomics. B) Scarcity. C) Macroeconomics. D) Productivity. Show Answer Correct Answer: B) Scarcity. 13. The business cycle is A) A bicycle ridden by an economist. B) A regular and predictable pattern of economic activity. C) The alternating increases and decreases in economic activity. D) Not a problem in modern, regulated economies. Show Answer Correct Answer: C) The alternating increases and decreases in economic activity. 14. What is most used to measure inflation? A) CPI (Consumer Price Index). B) Prime rate. C) Federal Funds rate. D) None of above. Show Answer Correct Answer: A) CPI (Consumer Price Index). 15. What is the value of a nations currency in relation to a foreign country? A) Trade Surplus. B) Exchange Rate. C) Foreign Exchange Market. D) Trade Deficit. Show Answer Correct Answer: B) Exchange Rate. 16. ..... are senior executives who have been elected by the company's shareholders to direct business operations on behalf of their owners. A) Employees. B) Managers. C) Supervisors. D) Directors. Show Answer Correct Answer: D) Directors. 17. Who developed the IS-LM Model? A) J. M. Keynes. B) Adam Smith. C) Hicks and Hansen. D) Hawtrey. Show Answer Correct Answer: C) Hicks and Hansen. 18. How may fiscal policy increase total (aggregate) demand? A) By increasing the money supply. B) By cutting the rate of taxation. C) By increasing the budget surplus. D) By cutting the rate of interest. Show Answer Correct Answer: B) By cutting the rate of taxation. 19. Choose the Best Answer.Jessica works for more than 40 hours weekly. Although her educational background is not aligned to her current job, she still has no intention to leave her current job. In this case, Jessica falls in what labor category? A) Visibly underemployed. B) Invisibly underemployed. C) Employed. D) Unemployed. Show Answer Correct Answer: C) Employed. 20. Which of the following statements is associated with general equilibrium analysis? A) Equilibrium in the market of gold ornaments. B) Equilibrium across all markets in the economy. C) Equilibrium price of a good in the competitive market. D) None of these. Show Answer Correct Answer: B) Equilibrium across all markets in the economy. 21. What is aggregate demand (AD)? A) The willingness and ability to purchase a product at a given price. B) The total spending on services in a period of time at a given price level. C) The total spending on goods and services in a period of time at a given price level. D) The total demand for a product in an industry. Show Answer Correct Answer: C) The total spending on goods and services in a period of time at a given price level. 22. Lowering interest rates can have what negative economic effect? A) Prices may inflate. B) There isn't a negative effect. C) Unemployment will decrease. D) Prices may not inflate. Show Answer Correct Answer: A) Prices may inflate. 23. Any human-made resource or skill to fulfill a good or service A) Land. B) Capital. C) Labor. D) Entrepreneurship. Show Answer Correct Answer: B) Capital. 24. The act of the Fed processing millions of checks per day for banks. A) Reserve requirement. B) Bank panic. C) Bond. D) Check clearing. Show Answer Correct Answer: D) Check clearing. 25. According to money neutrality, the only long run effect of an increase in the money supply is to ..... A) Raise aggregate price level by an equal percentage. B) Lower aggregate price level by an equal percentage. Show Answer Correct Answer: A) Raise aggregate price level by an equal percentage. 26. Which of the following is a leakage from the circular flow of income? A) Investments. B) Government spending. C) Exports. D) Imports. Show Answer Correct Answer: D) Imports. 27. Stagflation is the result of A) A leftward shift in the aggregate supply curve. B) A leftward shift in the aggregate demand curve. C) A leftward shift in both the aggregate supply and aggregate demand curve. D) A rightward shift in the aggregate supply curve. E) A rightward shift in the aggregate demand curve. Show Answer Correct Answer: A) A leftward shift in the aggregate supply curve. 28. A country's living standard is best measured by the: A) Nominal GDP. B) Real GDP. C) Per capita real GDP. D) Per capita nominal GDP. E) Unemployment rate. Show Answer Correct Answer: C) Per capita real GDP. 29. The study of the behaviors and decisions made by individuals, households, and firms; economic decisions of individuals and firms/ producers and consumers A) Microeconomics. B) Macroeconomics. C) Command Economies. D) Gross Domestic Product. Show Answer Correct Answer: A) Microeconomics. 30. What does FOMC stand for? A) Federal Operational Market Corporation. B) Federal Open Money Committee. C) Federal Open Market Committee. D) Federal Operational Money Corporation. Show Answer Correct Answer: C) Federal Open Market Committee. ← 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